Usha Martin Q4 loss at Rs 9.68 crore

KOLKATA: Steel and wire rope manufacturer Usha Martin Ltd has posted a loss of Rs 9.68 crore in the last quarter of 2013-14 as compared to net profit of Rs 22.11 crore in the same period previous fiscal.

Consolidated net sales of the company increased 28.5 crore during the quarter at Rs 1,252.56 crore compared to Rs 947 crore during the previous last quarter.

Usha Martin Chairman Prashant Jhawar said the loss had been due to higher interest and depreciation charges made on capital expenditure.

Besides, higher raw material costs and lower realisation had also attributed to the loss. However, EBIDTA of the company remained same in the two comparable quarters at Rs 192 crore.

He said the company had appointed consultancy firm Accenture for improving operational efficiency and cost control. Jhawar said although the pellet plant had been commissioned in mid-January, it was yet to stabilise as a lot of debugging needs to be done.

"We expect the benefits of investments will accrue during the third quarter of the current fiscal as operations get stabilised," he said.