InvestorQ : How do you see the turnaround in performance of Alok Industries in the Dec-20 quarter?
Dia Deshpande made post

How do you see the turnaround in performance of Alok Industries in the Dec-20 quarter?

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swati Bakhda answered.
4 months ago
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You must be aware that Alok Industries was a NCLT company and has just come out of it thanks to the bid by JM and Reliance Industries. The Q3 net loss of Alok narrowed to one-fifth on yoy basis. At the same time, the top line sales grew by 38.9% in Dec-20 quarter to Rs.1,213.20 crore. Post NCLT, the business volumes are getting back to pre-COVID levels.

There was a turnaround in the operating performance with the company reporting operating profits of Rs.84.15 crore in the quarter as against operating loss last year. It also reported OPM of 6.94%. As a result, the consolidated net loss for Dec-20 quarter narrowed to more than a fifth at Rs.35.12 crore as compared to a net loss of Rs.194.5 crore in Dec-19.

In the Sep-20 quarter, the company had reported an exceptional gain of Rs.5023 crore due to the extinguishing and reduction of a portion of its debt that was written off by banks and other creditors. Earlier in Jun-20 quarter, Alok had taken written off of Rs.8262 crore towards impairment of asset values. Reliance and JM had converted the assigned debt into equity.

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