Calcutta, Aug. 8: The net losses of Kesoram Industries more than doubled in the first quarter ended June at Rs 201.92 crore against Rs 99.90 crore in the corresponding quarter a year ago as the company continued to struggle to generate revenue from its tyre division.
Net income from operations stood at Rs 1,266.69 crore, a decline of 0.98 per cent over the same period a year ago.
Revenues from the tyre segment dipped 10 per cent over the previous year. Tyre constitutes around 60 per cent of the company’s business.
The cement business reported an 18 per cent growth in revenue in the first quarter.
The company disclosed a Rs 33.09 crore discount given to tyre dealers for sales made in an earlier period.
The company’s finance costs increased to Rs 179.72 crore during the quarter, which include a mark-to-market loss of Rs 18.68 crore on a composite currency swap deal and Rs 0.49 crore on an interest rate swap deal. This further pulled down the bottomline of the BK Birla group entity.
A senior Kesoram official said high finance costs because of long-term debt continued to impact the bottomline. He said the company continued to focus on lowering its debt. It had formed a three-member committee to evaluate options for re-organising its existing business.
The committee is expected to submit its observations soon, the official said.
Birla Corp show
Birla Corp, the flagship MP Birla group company, has registered a 116.39 per cent growth in net profit at Rs 99.52 crore for the quarter ended June 30 compared with Rs 45.99 crore a year ago.
Net sales increased to Rs 874.82 crore during the quarter under review from Rs 783.17 crore a year ago.