Usha Martin posts Rs.35.99 crore loss in Q3

Kolkata based wire rope and steel bar maker Usha Martin Ltd (UML) Saturday said it suffered a loss of Rs.35.99 crore for the quarter ended Dec 31 (Q3) of the current fiscal compared to the net profit of Rs. 15.43 crore in the same period last fiscal year.

The accumulated loss so far is Rs. 149 crore.

The company's consolidated revenue from net sales stood at Rs. 1,076.77 crore compared to Rs. 965.38 in the corresponding timeperiod.

EBITDA stood at Rs.185.07 crore for the period under review compared to Rs.230.82 in Q3 of the last fiscal year.

"The demand for speciality and commodity steel remained subdued as well as competition from the Chinese players increased," the company's chairman Prashant Jhawar told media here after the board meeting.

He also said higher charge of depreciation and interest contributed to the loss it posted this financial quarter.

However, Jhawar said the financial performance of the company is likely to improve in the next quarter as it has taken steps to improve its metallics business as well as cut down operational costs in plants.

"Improving business sentiments and RBI signalling interest rate cuts should help the company to benefit and improve its operating performance," he said.

The company will be participating in the upcoming coal block auction stated to begin late February this year.

"We paid Rs. 8 crore coal cess this quarter and in the next quarter will pay a similar sum," he said.

The company's consolidated turnover in the calendar year 2014 increased by 20 percent with its steel production up by 14 percent. Production of sponge iron also went up by 36 percent.

During the third quarter, it dissolved its wholly owned subsidiary E.M.M. Caspian Ltd.

-- Indo-Asian News Service

avr/vipvm