Amtek Auto Q1 loss widens to Rs889 crore
New Delhi: Auto components maker Amtek Auto Ltd on Saturday reported widening of standalone loss to Rs889.58 crore for the first quarter ended 30 June, hit by exceptional inventory losses.
The debt-ridden firm had posted a standalone net loss of Rs319.68 crore in the same period previous fiscal, Amtek Auto said in a Bombay Stock Exchange (BSE) filing. The company said exceptional items of Rs504.91 crore primarily includes losses arising from corrective action taken for inventory.
Total income from operations during the quarter stood at Rs446.84 crore as against Rs576.49 crore, down 13.44%. Amtek Auto said during the quarter it completed an evaluation of all its inventories owing to decline in effective operations due to working capital stress with an objective to identify inventories that are aged and may not be usable and also the cost of carrying such inventories.
“Based on the results of such assessments, the management took corrective actions such as sale of aged and non-usable inventory, determine alternate usage of certain inventories, and has accordingly recorded any loss arising,” it added.
On Friday, the troubled auto component firm said its arm Amtek Global Technologies would sell its UK-based subsidiaries’ plants to the Liberty group. The company has been struggling to make a turnaround ever since it reported temporary cash flow mismatch in 2015 and defaulted on payment of an estimated Rs800-crore bond.