Hinduja Foundries reports Rs 51 cr in Q3

Hinduja Foundries, part of the Hinduja Group, has reported a net loss of Rs 51.01 crore for the third quarter ending December 31, 2012.

The Chennai-based company reported net loss at Rs 3.89 crore during the corresponding period of previous year, Hinduja Foundries said in a BSE filing today.

The total income from operations, for the third quarter ending December 31, 2012 slipped to Rs 148.47 crore from Rs 190.20 crore registered during the same period of last fiscal.

Noting that the company's performance has been "impacted" due to sharp fall in demand from its major customers, rise in power as well as material costs, the company said its accumulated losses as of September 30, 2012 "significantly" eroded the net worth of the company.

"Accordingly the company issued a notice through postal ballot to the shareholders pursuant to the Section 192A of the Companies Act, 1956 to approve the intimation to the Board for Industrial and Financial Reconstruction about erosion of more than 50% of company's peak networth pursuant to section 23 of the Sick Industrial Companies Act 1985", the company said.

The company has initiated various steps to improve its operational performance and liquidity, remove bottlenecks relating to its projects, improve networth including raising capital from the promoters through issue of nine% redeemable non-convertible cumulative preference shares.

On the current business plans, availability of banking limits and commitment to subscribe for preference share capital, the company believes that it would be able to meet its financial requirements and "no" adjustments would be required, it said.

Shares of the company closed at Rs 49 apiece up by 2.94% in BSE.