Aksh Optifibre Reports Wider Losses in Q1 Amid Revenue Decline and Banking Disputes

Aksh Optifibre Limited, a leading player in the optical fibre industry, has reported a challenging first quarter, marked by declining revenues and widening losses. The company's financial performance for the quarter ended June 30 reflects the ongoing struggles in both its manufacturing and services segments.

Financial Performance

Aksh Optifibre's standalone revenue from operations saw a significant decline, dropping to Rs 2,691.30 lakhs from Rs 4,097.60 lakhs in the same quarter last year, representing a decrease of approximately 34.32%. The company's standalone net loss expanded to Rs 375.95 lakhs, compared to a loss of Rs 311.07 lakhs in the previous year's corresponding quarter.

On a consolidated basis, the situation appeared even more challenging:

• Consolidated revenue from operations decreased to Rs 2,694.56 lakhs from Rs 4,195.45 lakhs year-on-year.
• The consolidated net loss widened to Rs 645.83 lakhs from Rs 551.50 lakhs in the same period last year.

Segment-wise Performance

Both of Aksh Optifibre's primary business segments reported losses:

• The manufacturing segment recorded a loss of Rs 203.95 lakhs.
• The services segment posted a loss of Rs 45.27 lakhs.

Regulatory Challenges and Banking Disputes

Adding to the company's financial woes are significant regulatory challenges and banking disputes:

1. Unaccounted Liabilities: The company faces unaccounted liabilities of Rs 1,951.70 lakhs in interest and Rs 840.19 lakhs in duty related to export schemes.

2. SARFAESI Notices: Aksh Optifibre has received notices under the SARFAESI Act from two banks:

   • Union Bank of India
   • HDFC Bank, claiming Rs 3,663 lakhs

3. Legal Actions: The company has filed applications with the Debt Recovery Tribunal and is exploring one-time settlement options with the banks to resolve these issues.

Management Response

In response to these challenges, the company's management has stated that they are seeking suitable legal advice and discussing one-time settlement options with the banks. They have assured stakeholders that they will take all necessary actions to protect the interests of all parties involved.

Outlook

The first quarter results paint a concerning picture for Aksh Optifibre Limited. The company faces multiple challenges, including declining revenues, mounting losses, and significant banking and regulatory issues. As the company navigates these turbulent waters, stakeholders will be closely watching its efforts to turn around its financial performance and resolve the ongoing disputes with financial institutions.