Sona Koyo consolidated net profit at Rs 3.86 cr; stock up

MUMBAI: Sona Koyo Steerings on Wednesday reported a consolidated net profit of Rs 3.86 crore for the quarter ended September 2011 as compared to Rs 7.17 crore in the same period a year ago.

Total operating income grew to Rs 337.11 crore from Rs 281.94 crore in the corresponding quarter last fiscal.

“The company expects strong pick up in sales post Maruti Suzuki’s resolutions of labor issues,” said Surinder Kapur, CMD, Sona Koyo Steering, in an interview with ET Now.

Surinder further added, “The company has lost nearly Rs 50 cr in revenue due to Maruti’s Manesar issue.”

However, the company expects sales to grow in the next five months.

At 11:20 a.m., shares of the company were trading 1.1% higher at Rs 14.49. It touched a high of Rs 14.80 and low of Rs 14.25 in trade so far. For the year the stock has plunged over 20%.

Analysts Call: Deepak Mohoni, Director, trendwatchindia.com

Sona Koyo is not the best among the auto components manufacturing companies and the stock is barely a rupee above its 3 year low. The stock has to come out of its downtrend before it moves higher.