AGC Networks gains as net loss narrows to Rs 3.6 crore

Essar Group firm AGC Networks has risen over 3% at Rs 89 on the BSE after reporting a net loss of Rs 3.55 crore for the third quarter ended December 31, 2014 compared to loss of Rs 89.63crore in the same quarter last year. On a sequential basis too the company managed to bring down its loss for the quarter from Rs 9.24 crore in quarter ended September 30, 2015.

Revenue at Rs 232.45 crore for the quarter was up 23% from Rs 188.9crore reported in the same quarter last financial year. On quarter-on-quarter basis revenue grew 3.6%.

The company for the first time in the last several quarters returned to profitability at the EBITDA level during this quarter. EBITDA for the quarter was at Rs 8.16 crore, from a loss of 24.69 crore in the same quarter last year.

"We have been working on a plan to bring back the company to profitability and the numbers clearly hint towards that. In our very first quarter (JASQ2), we increased the sequential turnover 18%, optimized manpower by 25%, improved margins by 70% and returned to operating profits," said Anil Nair, MD and CEO, AGC Networks.

The stock opened at Rs 90 and touched a high of Rs 90 on the BSE. A combined on nearly 1,900 shares changed hands on the NSE and BSE counters till 1010 hours.