Monnet Ispat & Energy slumps after Q3 net loss widens

Monnet Ispat & Energy hit a lower circuit of 5% at Rs 14.23 after the company's net loss increased to Rs 137.15 crore in Q3 December 2019 from Rs 77.66 crore in Q3 December 2018.

Net sales rose 16% to Rs 570.17 crore in Q3 December 2019 (Q3FY20) from Rs 491.61 crore recorded in Q3 December 2018 (Q3FY19).

Total expenditure rose 28.4% to Rs 607.98 crore in Q3FY20 over Q3FY19. Interest expense rose 29.5% to Rs 63.41 crore in Q3FY20, from Rs 48.97 crore in Q3FY19.

On 31 December 2019, the company had informed about the share purchase agreement (SPA) signed with Champak Corporate Services to sell and transfer the entire equity shareholding held by it in Monnet Sports Foundation (MSF) and Chomal Exports, non-operative, non-material and non-core subsidiaries of the company.

The company informed on Monday that it completed the transfer of its entire equity shareholding held by it in MSF and Chomal Exports to Champak Corporate Services and accordingly, MSF and Chomal Exports have ceased as subsidiaries of the company.

Monnet Ispat manufactures a range of steel products, ferro alloys and sponge iron. The company also produces power for captive consumption.

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