Amtek Auto loss widens to Rs 889 cr

Auto components maker Amtek Auto Ltd today reported widening of standalone loss 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 loss of Rs 319.68 crore in the same period previous finacial year, Amtek Auto said in a BSE 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.

Amtek Auto 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 loss arising,” it added.

The troubled auto component firm said its arm Amtek Global Technologies 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.