Coffee Day shares fall 5% after company delays Q2 results

Shares of Coffee Day Enterprises fell 5 percent on Thursday after the company announced a delay in the announcement of the second quarter and half-yearly results owing to a probe into the accounts of the company and its subsidiaries. According to the regulatory filing, the probe into the company’s accounts is progressing and is likely to take a few more weeks for completion.

The stock fell as much as 5 percent to Rs 41.15 per share on BSE. At 9:34 am, the stock was trading 2.8 percent lower at Rs 42 as compared to 0.12 percent or 46 points fall in BSE Sensex at 40,069.

In another development, KKR India chief executive Sanjay Nayar has quit the board of Coffee Day Enterprises. Nayar resigned on Monday and the board accepted his resignation on Wednesday, the company said in a stock-exchange filing.

The board had appointed former DIG of CBI Ashok Kumar Malhotra to investigate into the circumstances leading to statements made in the letter of the former chairman late VG Siddhartha on July 27, 2019, and to scrutinize the books of accounts of the company and its subsidiaries.

Coffee Day Enterprises announced its unaudited results for Q1FY20. It reported a net profit of Rs 1,509 crore in the first quarter of this financial year as it booked a one-time gain of Rs 1,659 crore from the sale of Mindtree stake.

Net profit stood at Rs 17 crore in the year-ago period. Excluding the gain, the company, however, reported a loss of Rs 156.6 crore for the April-June period.

Its revenue stood at Rs 942 crore, down 2 percent on a year-on-year basis. Post the demise of CDEL group chairman V G Siddhartha, the company had taken approval to delay its Q1 result announcement by 45 days.

Coffee Day Enterprises, which owns and operates India's largest coffee chain Cafe Coffee Day, has a total debt of Rs 4,970 crore, according to its regulatory filing on August 17.