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Amtek Auto loss widens to Rs 889 cr

Total income from operations during the quarter under review stood at Rs 446.84 cr

Press Trust of India  |  New Delhi 

amtek

Auto components maker Ltd today reported widening of standalone to Rs 889.58 crore for the first quarter ended June 30, hit by exceptional inventory losses.

The debt-ridden firm had posted a standalone net of Rs 319.68 crore in the same period previous finacial year, said in a filing.

The company said exceptional items of Rs 504.91 crore primarily includes losses arising from corrective action taken for inventory. 

Total income from operations during the quarter under review stood at Rs 446.84 crore as against Rs 576.49 crore, down 13.44 per cent.

said during the quarter it completed an evaluation of all its inventories owing to decline in effective operations due to working capital stress with an objective to identify inventories that are aged and may not be usable and also the cost of carrying such inventories.

“Based on the results of such assessments, the management took corrective actions such as sale of aged and non-usable inventory, determine alternate usage of certain inventories, and has accordingly recorded any arising,” it added.

The troubled auto component firm said its arm would sell its UK-based subsidiaries’ plants to the Liberty group.

The company has been struggling to make a turnaround ever since it reported temporary cash flow mismatch in 2015 and defaulted on payment of an estimated Rs 800-crore bond.

First Published: Sat, July 22 2017. 23:18 IST
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