Lloyds Steel Q1 net loss widens at Rs 31.57 cr
Mumbai: Lloyds Steel on Monday extended its loss making streak by reporting a net loss of Rs 31.57 crore for the quarter ended June 30, 2012, on account of high expenditure.
The company has been making losses for quite some time now. During the corresponding quarter of the previous fiscal, it had reported a net loss of Rs 80.69 crore, while its loss for full year 2011-12 was at Rs 73.45 crore.
Its total expenditure, during the quarter was at Rs 1,382 crore, about Rs 20 crore more than company's total income at Rs 1,362.42 crore, it said in a filing to the BSE.
Besides, it also said its shareholders had approved preferential allotment of shares worth Rs 380 crore to non-promoters -- Ultimate Logistics Solutions Pvt Ltd and Metallurgical Engineering Equipment Ltd (MEEL).
The decision to allot preferential shares to non-promoters has been challenged by one of its lender and shareholder, ARCIL (Asset Reconstruction Company India Ltd) in Mumbai High Court, "alleging that the company does not meet one of the terms set out for restructuring the debt", Lloyds said in the filing.
Ultimate Logistics Solutions Pvt Ltd and Metallurgical Engineering Equipment Ltd (MEEL) are subsidiary firms of Uttam Galva Metallics, which is a pig iron manufacturer and part of Uttam Galva group promoted by Miglani family. The two firms currently hold 24.53 percent stake in Lloyds.
Lloyds has a steel making capacity of 1 million tonne per annum (MTPA), which includes 0.7 MTPA hot rolled coils and 0.3 MTPA cold rolled coils. It also has an engineering division which designs and fabricates hydro, power and steel plants.
The company also has an un-operational iron ore mine in the Gadhchirolli district of Maharashtra.
Shares of Lloyds Steel on Monday closed at Rs 10.83 apiece on the BSE, up 0.65 percent from the previous close.
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