Adhunik Metaliks posts Rs 9.9 cr loss

Steel raw material supplier Adhunik Metaliks, which recently shifted its base from Kolkata to Kuarmunda in Sundergarh district, has posted a net loss of Rs 9.9 crore for the quarter ended June 2013, as against a net profit of Rs 16.8 crore in the year-ago period. The company said higher cost of operation due to commissioning of its power plant ate away its profit margins.

The company's subsidiary Adhunik Power and Natural Resources Ltd, has 540 Mw (2x2790Mw) power plant in Jharkhand. During the quarter, its second unit became operational.

"Since the power plant operation is under stabilisation, the company has incurred a loss of Rs 26.75 crore during the quarter," said Manoj Agarwal, managing director, Adhunik Metaliks, in its financial statement for the period of April-June.

During the same period, total income from operations rose by 35 per cent to Rs 766.53 crore, from Rs 567.95 crore in the corresponding quarter last financial year, the company said in a filing to the Bombay Stock Exchange (BSE).

The company deals with sale of iron ore, manganese ore, sponge iron, iron ore pellets and other steel products along with power through its several subsidiaries.

The results for the quarter ending June 2013 are even lower than Jan-March period, when it made a profit of Rs 21.22 crore. Apart from power plant commissioning cost, the decline in net sales and other income during April-June pushed the company down into red corridor compared with March ending quarter.

During April-June, net sales of the company was down by 26 per cent from Jan-March while other income slumped by 70 per cent, data from unaudited financial results showed.

The company, which in May this year, had decided to follow an accounting year from July to June, did not announce any dividend for the year ending June, 2013. The shares of the company last closed at Rs 20.50 on BSE.