India's Varroc Engineering falls 11% as semi-conductor shortage hurts Q4 results

Varroc Engineering

07/06/2021 06:22

** Shares of auto component maker  VARE.NS  fall as much as
11% to 386.50 rupees, their biggest intraday pct loss since Feb.
10
    ** Co on Friday reported March qtr loss that widened from a
yr ago to 1.45 bln rupees ($19.92 mln)  urn:newsml:reuters.com:*:nFWN2NM0RZ
    ** CARE said results were impacted mainly due to weaker
margins at its lighting systems unit due to semi-conductor
shortages and poor revenue mix 
    ** Semi-conductor shortages is leading to key customer
original equipment manufacturers shutting plants, reducing
volumes - VARE
    ** Says it saw continued losses in new plants – Poland and
Morocco as volume ramped-up slower than expected
    ** Says increase in raw material costs in semi-conductors,
resin were not offset by corresponding increases in selling
prices
    ** COVID-19 has driven up demand for semiconductor chips for
use in electronics like computers, as people worked from home,
and suppliers are struggling to adjust, hitting output at many
automakers  urn:newsml:reuters.com:*:nL8N2MF3G2
    ** Expect FY22 to be another challenging year for Varroc due
to several headwinds like shortage of semiconductor issues,
Dolat Capital said in a note
    ** About 939,400 shares change hands, 5.5x 30-day avg
    ** VARE shares up 9.3% this year as of last close


($1 = 72.7750 Indian rupees)

 (Reporting by Nallur Sethuraman in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (Within U.S.
1-646-223-8780, Outside U.S. +91 8067496031); Reuters Messaging:
nallur.sethuraman.thomsonreuters.com@reuters.net))