Era Infra Engineering plunges into red on lower sales

NEW DELHI: Era Infra EngineeringBSE -4.81 % today said it went into the red, reporting Rs 143 crore net loss on lower sales and higher financial expenses for the July-September quarter of the current fiscal, 2013-14.

The company had clocked Rs 48.5 crore net profit in the corresponding quarter last fiscal, 2012-13, it said in a BSE filing. In the first quarter (April-June) of the current fiscal, it had clocked Rs 10.29 crore net profit.

The loss is mainly attributed to the dip in net sales, which fell to Rs 601 crore during the July-September quarter from Rs 916 crore for the same period a year earlier.

The major reason for the fall in net sales was subdued contribution from its "contracts" segment. Revenue from this segment fell to Rs 449 crore during the quarter from Rs 810 crore in the same period a year ago.

Era Infra Engineering operates in areas like energy, equipment hiring and trading.

Financial expenses of the company, which rose to Rs 186 crore the July-September quarter from Rs 135 crore in the year-ago period, also contributed to the loss.

"The company has made a reference to CDR cell of RBI for initiating the process of Corporate Debt Restructuring... The proposal is only for Era Infra Engineering and not for any of its subsidiaries," it said.

Shares of the company were trading at Rs 21.80 apiece, down 4.8 per cent, during the afternoon trade on BSE.

Source- Economic Times

                       By

Shah Mohammad Abdul Qadir 

       PGDM 1st Sem

IIMT College Of Management 

      Greater  Noida, UP