Gammon India Shares Rise As December Quarter Loss Narrows

Gammon India shares jumped nearly 5 per cent on Wednesday to hit an intraday high of Rs 12.75, a day after the company reported a narrower losses for the December quarter. Mumbai-based Gammon India post-market hours on Wednesday posted a standalone loss of Rs 20.53 crore for the three-month period that ended on December 31, 2016, compared with Rs 119.06 crore for the corresponding period a year ago.

Construction company Gammon India's income from operations declined to Rs 717.56 crore. It had logged an income from operations of Rs 818.83 crore for the year-ago period.

December quarter earnings are seen as a positive for Gammon India as narrowing of losses and reduction in expenses will boost its profitability, analysts said.

The infrastructure major's total expenses came down 23 per cent year-on-year. They were at Rs 639.21 crore in the quarter under review, compared with Rs 830.21 crore a year ago.

At 10:26 am, Gammon India shares were trading 3.12 per cent higher at Rs 12.57 apiece on the BSE, whose benchmark Sensex index was up 15 points or 0.05 per cent.

At the end of December 2016 quarter, Gammon India's promoter group held a 12.83 per cent stake in the company, while the remaining 87.17 per cent was with the public.