Moneycontrol Bureau
ABG Shipyard, the flagship firm of the ABG Group, on Friday said its standalone loss has widened to Rs 249.62 crore in the quarter ended June 2015 from Rs 55.6 crore in the year-ago period but the loss narrowed compared to Rs 374.9 crore in March quarter 2015. Sharp fall in revenue hurt bottomline.
Total income from operations plunged 92 percent to Rs 20.88 crore during the quarter compared to Rs 266 crore in same quarter last year.
The company said, "The global shipbuilding industry is passing through a very bad phase with all the major shipyards showing huge losses in results declared in recent past. As such the company's performance is in line with the industry trend."
During the quarter, the company has continued to make efforts to enhance its operations, but progress of construction of vessels was affected due to factors such as unavailability of working capital finance resulting into non-availability of required materials, reduced production levels at various yards, etc, it added.
ABG further said, "On the instruction of the lenders, the company is in the process of completing the pending work on few identified vessels only. Due to such exceptional circumstances, the manufacturing process over the remaining vessels is suspended. Hence, overhead absorption over such vessels has also been suspended."Accordingly, overhead and interest absorption had been only over ongoing vessels resulting in increased losses, it added.
Finance cost during the same period increased to Rs 199.17 crore from Rs 176.25 crore year-on-year.Posted by Sunil Shankar Matkar
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