Alok Industries Q3 net loss narrows sharply on sharp spike in top line revenues

19 Jan 2022 , 12:18 AM

Alok Industries Ltd reported 77.2% growth in total revenues for the Dec-21 quarter on consolidated basis at Rs2,129.60cr. On a sequential basis, the total revenues were up 11.82%.

The company was acquired by a consortium formed by Reliance Industries and JM Financial, which had acquired a controlling stake in Alok Industries as part of the NCLT resolution.

The debt of Rs17,384cr assigned to the resolution applicants will be non-interest bearing for the first 8 years after the resolution. The sharp growth in sales narrowed losses.

The consolidated net loss of the company for the Dec-21 quarter narrowed to Rs-0.09cr on the back of a 77% surge in sales revenues which was largely responsible for the company being able to absorb its fixed costs more efficiently.

There was a sharp spike of about 100% in the cost of raw materials, which was partially due to higher output and partially due to supply chain constraints. Like most industries, the company also saw its fuel and power costs spike by more than 33% on a yoy basis, but revenue growth narrowed losses.

Financial highlights for Dec-21 compared yoy and sequentially

	Alok Industries
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 2,129.60	₹ 1,201.80	77.20%	₹ 1,904.57	11.82%
Net Profit (Rs cr)	₹ -0.09	₹ -35.12	-99.74%	₹ -84.11	-99.89%
Diluted EPS (Rs)	₹ -0.00	₹ -0.07		₹ -0.17
Net Margins	0.00%	-2.92%		-4.42%