Kesoram Industries shares climbed 9.5 percent intraday Friday after a media report indicated there could be demerger of company’s tyre business.
The tyre-cement-to-rayon maker is considering demerger of its tyre business and the same announcement is likely in next two weeks, reports CNBC-TV18 quoting unnamed sources.
Report said Kesoram is looking to induct a strategic partner in its tyre business post demerger as it has been a loss-making unit for many years.
Kesoram told CNBC-TV18 that it cannot comment on market speculation.
The company had reported loss of Rs 96.25 crore for the quarter ended September 2018 due to its loss-making tyre business. However, the loss narrowed from Rs 139.59 crore reported in same quarter last year.
Revenue from operations grew by 10.2 percent year-on-year to Rs 926.15 crore in Q2 with tyre segment showing a 1.9 percent growth at Rs 356.13 crore and cement rising 16.10 percent to Rs 570 crore.
At operating level, tyre segment narrowed its EBIT loss to Rs 19.87 crore in the quarter ended September 2018 from Rs 48.49 crore in same period last year while cement EBIT declined 2.4 percent to Rs 32.65 crore YoY.
At 11:40 hours IST, the stock was quoting at Rs 86.50, up Rs 5.50, or 6.79 percent on the BSE.
