Shyam Century Ferrous Reports ₹402.80 Lakh Net Loss in Q1, Ceases Plant Operations
By ScanX News Team
Shyam Century Ferrous Limited reported a net loss of ₹402.80 lakh for Q1 FY24, up from ₹270.05 lakh in Q1 FY23. Revenue from operations declined 47.32% YoY to ₹1,419.46 lakh. The company ceased operations at its Meghalaya plant due to increased power tariffs. Despite operational challenges, total comprehensive income was positive at ₹675.50 lakh, primarily due to changes in fair value of investments. The board appointed Ghanshyam Agarwal as Additional Director and re-appointed Nirmalya Bhattacharyya as Independent Director.
*this image is generated using AI for illustrative purposes only.
Shyam Century Ferrous Limited , a manufacturer of ferro silicon, has reported a net loss of ₹402.80 lakh for the quarter ended June 30, according to the company's recent financial results. This marks a significant increase in losses compared to the ₹270.05 lakh net loss reported in the same quarter of the previous year.
Financial Performance
The company's financial performance for Q1 shows a substantial decline in revenue and profitability:
| Particulars (₹ in Lakh) | Q1 Current | Q1 Previous | YoY Change |
|---|---|---|---|
| Revenue from Operations | 1,419.46 | 2,694.62 | -47.32% |
| Total Income | 1,618.13 | 2,826.47 | -42.75% |
| Total Expenses | 2,017.46 | 3,102.74 | -34.98% |
| Net Profit/(Loss) | (402.80) | (270.05) | -49.16% |
The revenue from operations saw a sharp decline of 47.32% year-on-year, falling to ₹1,419.46 lakh from ₹2,694.62 lakh in the corresponding quarter of the previous year. Despite the reduction in total expenses by 34.98%, the company's net loss widened by 49.16%.
Operational Update
A significant development impacting the company's operations was announced in the financial results. Shyam Century Ferrous has ceased operations at its plant located in EPIP, Rajabagan, Byrnihat, District-Ri-Bhoi, Meghalaya, effective from May 7. The closure was attributed to a substantial increase in power tariffs, which rendered the plant's operations economically unviable.
The company's management is actively exploring various restructuring and revival measures to restore the viability of the plant. This closure has been communicated to the stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Other Comprehensive Income
Despite the operational challenges and net loss, the company reported a positive total comprehensive income of ₹675.50 lakh for the quarter. This was primarily due to other comprehensive income of ₹1,078.30 lakh, which mainly consisted of net changes in fair value of investments in equity shares carried at fair value through OCI.
Management Changes
In other corporate developments, the company's Board of Directors, at their meeting held on August 8, made the following appointments:
- Mr. Ghanshyam Agarwal was appointed as an Additional Director in the Non-Executive category, effective immediately.
- Mr. Nirmalya Bhattacharyya was re-appointed as an Independent Director for a period of 5 years, effective from April 1, subject to shareholder approval.
These appointments are subject to approval at the upcoming Annual General Meeting.
Looking Ahead
As Shyam Century Ferrous grapples with the challenges posed by increased power tariffs and the subsequent plant closure, the company's focus appears to be on restructuring and reviving its operations. The management's efforts in the coming months will be crucial in determining the company's path to operational and financial recovery.
Investors and stakeholders will be keenly watching the company's next moves, particularly regarding the revival of the Meghalaya plant and any strategic initiatives to improve its financial performance in the face of current challenges.
Historical Stock Returns for Shyam Century Ferrous
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.46% | -1.03% | -13.07% | -25.00% | -58.27% | +135.38% |
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