Monnet Ispat reports 12th consecutive quarter loss
Debt-ridden Monnet Ispat & Energy reported a loss of Rs399.79 crore for the June quarter due to lower sales and higher interest cost
Mumbai: Debt-ridden Monnet Ispat & Energy Ltd on Tuesday reported a loss of Rs399.79 crore for the June quarter due to lower sales and higher interest cost. This was the 12th consecutive loss-making quarter for the company.
Net sales fell 17.7% from a year ago to Rs345.85 crore. Interest cost rose 16.5% year-on-year to Rs290.94 crore.
The company said in a notice to the BSE that the State Bank of India has initiated an insolvency resolution process against it after the Reserve Bank of India on 13 June directed banks to refer 12 troubled companies with a combined debt of close to Rs2.5 trillion to the National Company Law Tribunal (NCLT).
As of March 2017, the company had a total debt of Rs6,566.57 crore. In July 2015, rating agency Care cut the company’s loans and debentures to default grade. In December 2016, Care suspended its ratings after it failed to furnish information required for monitoring the ratings.
On Tuesday, shares of Monnet Ispat ended at Rs33.65 a piece on the BSE, down 1.9% from their previous close while the benchmark Sensex rose 0.1% to close at 31747.09 points.
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