ABG Shipyard, the flagship firm of the ABG Group, today said its consolidated net loss has widened to Rs 948.2 crore for the first quarter ended June 30.
The country's largest private sector shipbuilding yard had reported a net loss of Rs 222 crore in the year-ago period, it said in a filing to the BSE.
Total income of the firm on a consolidated basis plunged by 71 per cent to Rs 471.34 crore in the April-June quarter of this fiscal from Rs 1,640.85 crore in the same quarter of 2014-15.
ABG Shipyard's total expenses fell to Rs 899 crore from Rs 1,321.4 crore during the reported quarter.
The company said in the filing: "The global shipbuilding industry is passing through a very bad phase with all the shipyards showing huge losses in results declared in recent past. As such the company's performance is in line with the industry trend."
During the quarter, the company continued to make efforts to increase its operations, but progress of construction of vessels was affected due to factors such as unavailability of working capital finance resulting into non-availability of required materials, reduced production levels at various yards, etc, it added.
On the instruction of the lenders, the company is in the process of completing the pending work on few identified vessels only, ABG Shipyard said in the filing.
"Due to such exceptional circumstances, the manufacturing process over the remaining vessels is suspended. Hence, overhead absorption over such vessels has also been suspended. Accordingly, overhead and interest absorption had been only over ongoing vessels resulting in increased losses," it added.
Shares of the company today rose by 3.61 per cent to settle at Rs 167.95 apiece on the BSE.
