ABG Shipyard Posts Loss of Rs 173 Crore in September Quarter

New Delhi: ABG Shipyard on Friday reported a net loss of Rs 173 crore for the quarter ended September 30 after total income from operations slumped by 80 per cent.

The company had registered a net profit of Rs 1 crore for the corresponding quarter of the previous fiscal year, it said in a filing to the BSE.

"Due to slowdown in shipping and shipbuilding in global markets, the company faced large orders cancellations. This resulted in shortage of working capital affecting company's performance," ABG Shipyard said.

The company, however, said implementation of the corporate debt restructuring (CDR) scheme has started with the release of first tranche of Rs 650 crore (Rs 295 crore disbursed till date). "The objective of CDR scheme is to release additional working capital to accelerate ship delivery in next three years," it said.

Total income from operations of the company during the quarter under review was Rs 74 crore, 80.2 per cent lower compared to the corresponding period of last fiscal year.

Total income from operations in the July-September quarter of the previous fiscal year (FY14) was Rs 374 crore, ABG Shipyard said.

Shares in the company, on Friday, ended at Rs 237.75 apiece on the BSE, up 0.93 per cent from the previous close.