NEW DELHI
Elecon Engineering faced a tough start to the financial year as its net profit plunged by sixty percent this quarter. The company earned about seventy crore rupees, down heavily from last year’s profits. Higher operating costs severely squeezed profit margins, even though total business revenues actually grew by six percent. This disappointing financial news quickly worried investors, causing the company’s stock price to drop nearly six percent in afternoon trading. Hoping to reassure shareholders during this difficult period, the company’s management still recommended a small final cash dividend payout for every equity share.
