Zetwerk Q2 net loss widens 43%, revenue increases 18%

Bengaluru: Manufacturing platform Zetwerk's net loss widened 43% to ₹88.11 crore in the September quarter from ₹61.55 crore a year earlier, as revenue growth slowed and finance and employee stock option costs increased, although a shift towards higher-margin manufacturing products helped improve operating profitability. This is the Bengaluru-based company's first earnings announcement since listing on the stock exchanges on October 23.

Revenue from operations rose 18% to ₹4,599.36 crore from ₹3,889.26 crore a year earlier, slowing from 55% on-year growth in the preceding June quarter. Sequentially, revenue increased 12%, while net loss narrowed sharply from ₹731.98 crore.

Loss from continuing operations widened to ₹53.82 crore from ₹20.57 crore a year earlier, while the discontinued civil infrastructure business accounted for a loss of ₹34.29 crore, compared with ₹668.85 crore in the June quarter. The company had made substantial provisions for doubtful receivables, delayed projects and other expected losses in the discontinued business in the preceding quarter.