Market movers: Liquor makers get price shock in Telangana; Ramco Systems tanks

NEW DELHI: Shares of liquor makers traded down on Thursday after the Telangana government increased liquor prices by 20 to 25 per cent to raise its revenues.

Local media reports said the authorities have increased the price of 1,000 ml liquor by Rs 120. The price of a quarter bottle has been hiked by Rs 20. On all types of beer, there was a minimum hike of Rs 10 per bottle, reported Telangana Today.

Traders and companies fear higher prices will lead to lower sale.

Following the action, shares of alcohol producers tanked. United Spirits slumped nearly 5 per cent to Rs 796.35. United Breweries fell nearly 3 per cent to Rs 1,458. Radico Khaitan also fell about a per cent.

Kedia held stock reports losses
Losses continued to mount for Ramco Systems as the company reported a loss of 26.45 crore compared to Rs 7.45 crore profit in the same quarter last year. The company had also reported losses in the December quarter.

Revenue of the company also came down during the country.

The firm said its order booking stands at $64.78 million. It signed 13 million-dollar-plus deals during the FY22. Company continues to remain debt-free, it said in a release.

However, investors were not swayed by that. The stock tanked over 7 per cent following the earnings announcement.

The stock is held by value investor Vijay Kedia in his portfolio.

Cementing its position!
JK Lakshmi Cement said its profit was up at Rs 161. 26 crore in Jan-Mar 2022 against Rs 138.27 crore logged in the corresponding quarter. Its revenue also grew 13 per cent.

“Despite unabated increase in Petcoke and Diesel prices which are hovering at all-time high, JK Lakshmi Cement could achieve healthy profitability by continuous improvement in operational efficiencies, energy cost, better product mix and higher volume,” the company said.

During the Quarter, JKLC has commissioned 10 MW Waste Heat Recovery (WHR) Project at its Sirohi Plant, taking the Company's total WHR Capacity to 33 MW.

Investors were overjoyed with the announcement as the stock advanced over 7 per cent at the end of the day.