Essar Shipping posts Rs 1,424-cr loss in Q4

Essar Shipping Thursday reported standalone loss of Rs 1,424.18 crore during the fourth quarter ended March 31, mainly due to impairment losses.

During the same quarter a year ago, the company had posted Rs 180.57-crore profit after tax (PAT), Essar Shipping said in a BSE filing.

Total income from operations during the quarter under review fell to Rs 144.21 crore, from Rs 189.83 crore in the year-ago period.

Total expenses stood at Rs 169.14 crore as against 232.13 crore in January-March quarter of the preceding fiscal.

"The impairment of company's investments in certain subsidiary companies is evaluated by the management and process of validating various operational assumptions impacting the estimated future cash flows from certain subsidiary companies and consequent effect on investments. Accordingly the impairment of Rs 1,400 crore has been considered," the filing said.

The company further said its liabilities at present exceed the company's assets by Rs 1,426.35 crore as on March 31, 2019 and the firm is taking steps to rectify "this mismatch".