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    Rupa & Co drops 20% after Q4 earnings and resignation of CEO, CFO

    Synopsis

    On Monday, the company announced that it accepted the resignation of Chief Executive Officer Dinesh Kumar Lodha and Chief Financial Officer Ramesh Agarwal. Both resignations will be in effect from May 31. The company reported a 25 per cent drop in the net profit to Rs 49.3 crore in the quarter ended March 31, 2022, as against a net profit of Rs 65.9 crore in the same period previous year.

    Rupa & CoAgencies

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    New Delhi: Rupa & Company tumbled as much as 20 per cent during the early trading hours on Tuesday, after the resignation of key managerial personnels and numbers for the March 2022 quarter.

    On Monday, the company announced that it accepted the resignation of Chief Executive Officer Dinesh Kumar Lodha and Chief Financial Officer Ramesh Agarwal. Both resignations will be in effect from May 31.

    The company reported a 25 per cent drop in the net profit to Rs 49.3 crore in the quarter ended March 31, 2022, as against a net profit of Rs 65.9 crore in the same period previous year.

    Following the developments, shares of Rupa & Company dropped close to 20 per cent to Rs 414 on Tuesday at 10.25 am. The counter was just shy of its circuit limit at 412.5. The scrip settled at Rs 515.60 on Monday.

    The topline of the company grew marginally to Rs 455.5 crore from Rs 454 crore during the period under review. However, the profit margins of the company dropped about one fourth 10.8 per cent from 14.5 per cent.

    Sumit Khowala will take charge as the Chief Financial Officer, with effect from June 1. However, Agarwal will continue to hold the whole time director position at the garment maker, the company said in a regulatory filing.

    Additionally, based on recommendations, Rupa & Co re-appointed Niraj Kabra as the Executive Director of the company for a further period of five years with effect from February 12, 2023, subject to the shareholders' approval in the AGM.

    For the entire financial year 2021-22, the company reported a 9.4 per cent rise in net profit to Rs 191.8 crore from Rs 175.3 crore in the previous fiscal. The revenues of the company rose 12.3 per cent to Rs 1,474.1 crore during the FY222.






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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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