Shares of leading kitchen appliance company Stovekraft plunged 11% after disappointing results for the March quarter. The company reported a net loss of Rs 6 million compared to a profit of Rs 8.6 crore a year earlier.

However, revenue increased by 6.4% to Rs 278 crore compared to Rs 261.3 crore in the previous year.

The stock was quoted at Rs 445.20 on the NSE at 11 am, down 10% from its previous close. Volume was 967,479 shares, almost three times the 20-day average.

Speaking to CNBC-TV18, Rajendra Gandhi, managing director of StoveKraft, said tepid demand impacts margins. He noted that the distribution network was missing sales targets but highlighted growth in the retail and export sectors.

StoveKraft aims to expand its gross margin, which grew 100 basis points in FY23. Despite revenue growth of 13% in FY23, below expectations of 20%, Gandhi expects the EBITDA margin to recover from 2% to 11% by end-H1FY24.

He said that growth rates for the general trade and modern trade sectors were 17% and 14%, respectively. However, he added that the company faced challenges in generating sufficient cash flow from capital expenditures, leading to increased debt.

The company plans to reduce debt to previous levels over the next three quarters and remains committed to opening 7-8 stores per month.

Shares of Stovekraft have recovered from a 52-week low of Rs 353.10 hit in March 2023 but are still down 18% so far this year. The stock hit an all-time high of Rs 1,095 a few months after listing in February 2021 but is now absolutely flat.