Sical Logistics records a net loss of Rs 43.93 cr for the quarter of September
New Delhi, November 8 () Sical Logistics Ltd, a company of the Coffee Day Group, reported a consolidated net loss of Rs 43.93 million on Friday for the quarter ended September 30, due to liquidity challenges it faced the company after the disappearance of its promoter VG Siddhartha.
The company had reported a net profit of Rs 4.43 crore for the July-September quarter a year ago, Sical Logistics said in a regulatory document.
Its operating income fell 17.47 percent to Rs 297.76 crore during the quarter of September 2019, compared to Rs 360.83 rupees in the corresponding quarter of the previous year.
The consolidated financial results of Sical Logistics Limited for the quarter ended September 30, 2019 are significantly affected by liquidity challenges that lead to an 18% reduction in revenue for the quarter compared to the previous quarter, said Sical Logistics in a profit statement post.
Operations have been greatly affected during the quarter due to the reduction in volumes that lead to insufficient absorption of fixed costs. This led to a negative Ebitda (earnings before interest, taxes, depreciation and amortization) and the resulting loss of Rs 41.15 rupees for the quarter, he added more.
Liquidity challenges arose due to the disappearance of its promoter V G Siddhartha.
Subsequently, multiple meetings with lenders to seek a moratorium on debt service obligations did not yield positive results, the company said.
He also added that bankers continued to withhold charges for operations toward debt service obligations, including certain obligations that expire in the future.
In addition, the new projects won by the company in previous years, which were supposed to start operating in the current year, are suspended due to current liquidity challenges.
The board of directors is analyzing all possible deleveraging options, as well as options to increase the liquidity of the company to return to normal and be in an area of positive profits as in recent years, he added. Sical Logistics Ltd shares were liquidated on Friday at Rs 23.05 in the BSE, 2.12 percent less than the previous close. KRH HRS