Rentomo Ltd. SHARES JUMP 9% AFTER Q1 RESULT

Shares of newly listed Rentomojo surged as much as 9% in Tuesday’s trade after the company reported strong revenue and operating performance for the June quarter of the current financial year. The stock climbed to a high of Rs 557 per share on the NSE, marking a gain of more than 9% from the previous close. The rally came after Rentomojo announced its June quarter results after market hours on Monday. The results marked the company’s first quarterly earnings report since its stock market debut on September 17. Rentomojo’s revenue from operations rose 51.3% year-on-year to Rs 126.3 crore in the June quarter, compared with Rs 83.5 crore in the corresponding period last year. Operating performance also remained strong, with EBITDA increasing 54%. The EBITDA margin improved to 41%. However, the strong operating performance did not translate into higher net profit. Profit after tax declined 38.6% year-on-year to Rs 7.8 crore from Rs 12.7 crore. The company attributed the decline partly to an exceptional loss of Rs 11.3 crore arising from a fire incident at one of its warehouses during the quarter. Despite the fall in net profit, Rentomojo shares have gained more than 15% from their NSE listing price of Rs 482.45. The stock is also trading around 38% above its IPO issue price of Rs 404.