Shree Ganesh Jewellery House, a small-sized jewellery maker,?on Wednesday reported a R1,048-crore loss in Q2FY14. With this massive loss, it enters a list of companies, which includes Adani Enterprises and Jet Airways, that posted biggest quarterly losses in the recently concluded earnings season. The company said that a write-down of R1,008 crore due to cancellation of a bullion purchase agreement by its subsidiary in the UAE in October 2013 and recalling of goods in November 2013 because of canceled sales transaction of FY13 led to the quarterly loss.
The company said its UAE arm had suffered a net loss of R1,137 crore, of which R611.75 crore are provided for in the standalone quarterly numbers while the remaining R623.7 crore has been categorised as bad debt. The export-oriented jewellery maker held R996 crore of consolidated total debt as on March 2013.
Shree Ganesh, which entered the secondary market in April 2010, is the smallest company to have reported such a massive loss in the quarter. Its market-cap as of Thursday stood at R239 crore.
Central Bank of India topped the loss-making list in the quarter with a reported loss of R1,509 crore. Higher provisioning of R2,049 crore and a sharp y-o-y rise of nearly 14% in its non-performing assets weighed on the financial performance.
All the listed airlines are also among the top ten loss-making firms as falling rupee and poor market conditions affected their operating performance. Although on absolute basis, Jet Airways reported the biggest loss of R894 crore, when compared to the revenues earned, SpiceJet appears the worst performer with R559 crore. Kingfisher Airlines, the carrier which has stopped its operations for more than a year now, announced R716-crore loss.
The recurring issues of high dent and operational performance forced some of the capital-intensive companies to join the list, including two flagship companies of the Adani Group. Adani Power, which held a total debt of R40,608 crore at the end of the quarter, reported a net loss of R1,072 crore?as rupee depreciation and increased cost of coal procurement weighed on the financials. On the other hand, due to forex losses of R332?crore, Adani Enterprises posted a total loss of R657 crore.
MTNL stands fourth with a net loss of R947 crore.
Lanco Infratech was mired with a decline in revenue, forex losses and high interest payment which resulted into R576-crore loss. The company held R33,908 crore of debt as of September 2013.