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MT Educare defaults on bank loan payment

The delay in the payment of Interest/repayment of principal is due to disruption in the business activities of the education sector caused on account of ongoing COVID-19 pandemic restrictions in the field of education, the company said.

September 02, 2021 / 07:29 PM IST
(Image: mteducare.com)

(Image: mteducare.com)

Education service provider, MT Educare has defaulted on repayment of interest and principal amount to its lenders, the company said in a communication to exchanges on September 2.

"The Company would like to disclose that the Company has defaulted in repayment of Principal and Interest Amount," the firm said in a communication to exchanges.

The delay in the payment of interest/repayment of the principal is due to disruption in the business activities of the education sector caused on account of ongoing COVID-19 pandemic restrictions in the field of education, the company said.

According to the details provided by the company to the exchanges, MT Educare has a total borrowings of Rs 89.6 crore from banks and financial institutions.

Current loan default involves Rs 6.25 crore principal amount and Rs 2.22 crore interest component. The bank’s lenders are Axis Bank where it has an outstanding of Rs 13.24 crore borrowed at 11.65 percent and Rs 29.47 crore borrowed from Xander Financial Private Ltd at 13.75 percent.

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A loan becomes an NPA (non-performing asset) if there is no repayment of interest or principal for a period of 90 days. Banks need to set aside mode money for such loans to cover the potential losses.

Net sales of the company stood at Rs 19.35 crore in June 2021, down 17.13 percent from Rs. 23.35 crore in June 2020.

Quarterly net loss came in at Rs 0.71 crore in June 2021, up 62.66 percent from Rs. 1.89 crore in June 2020.

EBITDA was Rs. 8.64 crore in June 2021, down 5.16 percent from Rs. 9.11 crore in June 2020.

MT Educare shares closed at Rs 7.85 apiece on the BSE on September 2.
Moneycontrol News
first published: Sep 2, 2021 07:09 pm

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