- Date : 08/08/2023
- Read: 3 mins
Discover why Monte Carlo's shares plunged 12% following a significant Q1 loss expansion. Read this article to get insights into the market impact and potential implications.
Monte Carlo Limited, a leading apparel brand in India, faced a major setback in the first quarter of the financial year 2023. The company reported a staggering loss of Rs 11 crore, up from Rs 3.9 crore in the same quarter last year. This resulted in a 12 per cent plunge in its share price on August 8, wiping out millions of investor wealth. What went wrong with Monte Carlo in Q1? How did it fail to cope with the market challenges and consumer preferences? Read on to find out more about Monte Carlo’s Q1 disaster.
Highlights:
- Company's Q1 loss widens to Rs 11 crore from Rs 3.9 crore
- Revenue from operations soars 22 per cent to Rs 139 crore
- Costs surge more than 90 per cent to Rs 7 crore
- Company had made a net profit of Rs 19.8 crore in Q4 FY 2022
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Investors should be wary of purchasing shares in Monte Carlo Fashions Limited due to its increasing losses, rising finance costs, and declining stock price. The company's poor financial performance and lack of investor confidence indicate potential difficulties in recovering.
About the Company
Monte Carlo Fashions is a leading Indian clothing company that designs, manufactures, and retails a wide range of woollen and cotton garments for men, women, and kids. The company was founded in 1984 and is headquartered in Ludhiana, Punjab. Monte Carlo has a strong presence across India, with over 500 exclusive brand outlets (EBOs) and over 1,000 multi-brand outlets (MBOs). The company also exports its products to over 20 countries worldwide.
Stock price of the Company
The chart given below presents the stock price movement of the share in the past one year on a daily chart
The company has given investors returns of 121% in the past 2 years and 28% in the past 6 months. However, the stock is currently down by around 11% (at 11.45 am) as compared to its previous day's close.
Financial highlights of the Q1 results
Company’s Q1 loss widened to Rs 11 crore from Rs 3.9 crore last year. Interestingly, the company had made a net profit of Rs 19.8 crore in Q4 FY 2022.
The company’s revenue from operations soared 22 per cent to Rs 139 crore, as it managed to lower its raw material costs.
Company’s finance costs also surged more than 90 per cent to Rs 7 crore, as it faced higher interest and tax expenses. The company announced its Q4 results on August 7, ahead of its annual general meeting.
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