Bhushan Steel posts Rs.142-crore loss in Q1

Auto-grade steel manufacturer Bhushan Steel Tuesday reported a net loss of Rs.142 crore for first quarter (April-June) of this fiscal (2014-15) as against a net profit of Rs.76 crore in the same period a year ago.

According to the city-based company's unaudited results for the quarter under review (Q1), net sales, however, increased to Rs.2,804 crore from Rs.2,494 crore in the same quarter a year ago, registering around 12 percent growth.

The scam-tainted company reported Rs.20 crore loss in the previous or the fourth quarter (January-March) of last fiscal (2013-14) though net sales was Rs.2,510 crore.

The company's scrip slipped Rs.19.70 or about 10 percent in value on the Bombay Stock Exchange ending at Rs.177.75 per share of Rs.2 face value from Monday's closing rate of Rs.197.45.

The company's vice-chairman Neeraj Singhal was arrested Aug 2 by the Central Bureau of Investigation (CBI) along with state-run Syndicate Bank chairman and managing director S.K. Jain and four others in two bribery cases.

The investigation agency has accused Singhal of conspiring with Jain to ensure that about Rs.100-crore loan the bank advanced to the company was not declared a non-performing asset (NPA).