Loss-making listed firms at 4-quarter high

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Mumbai | Published: February 25, 2015 12:09:39 AM

In line with the dismal performance of corporate India in Q3FY15, the number of listed companies...

In line with the dismal performance of corporate India in Q3FY15, the number of listed companies that reported net loss has jumped to a four-quarter high.

In the three months to December 2014, as many as 1,478 companies — or close to 35% of a sample of 4,250-odd listed firms — reported losses and their accumulated losses jumped to R35, 549 crore.

Data show that, generally, during the March quarter, a larger number of companies tend to report losses as also the total loss for the universe tends to soar to 35-36% against the average 32%.

The list includes contenders from the infra and construction sectors, even as several PSUs, especially from the oil & gas sector, also feature on the list of loss-making companies.

Q4-earning

Prominent PSUs including, IOC, MRPL, MTNL, CPCL, Indian Overseas Bank and HPCL, each reported more than R300 crore of loss in the September-December quarter. The collective quarterly loss for these companies stood at R6,784 crore for the period. GMR Infra, GTL, Adani Power, GVK Power and IVRCL also reported net loss ranging between R635 crore to R172 crore.

Reflecting the woes of the domestic steel producers, Jindal Steel reported a consolidated net loss of R1,619 crore, as it accounted for a levy it paid to the government for mining coal from blocks that were subsequently cancelled by a court order. Saddled by a forex outgo, pharma giant Ranbaxy saw its quarterly loss widen to R1,030 crore.

While most of these companies belong to sectors likes power and steel that face operational issues, some of the highly leveraged firms went through the corporate debt restructuring mechanism in the last two years.

These includes Lanco Infra, which is finding it difficult to liquidate assets to lower its debt burden. Educomp Solution, Shree Ganesh Jewellery House, Bhushan Steel and Era Infra also continued to reflect their woes.

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