As per the latest updates, Uttam Galva has reported widening of net loss to INR 530.72 crore for Q3 FY19 (Sep-Dec quarter) against the loss of INR 179.96 crore in Q3 FY18 amid an increase in the company’s finance cost and plunge in operating income.
The company’s income from operations for the third quarter of financial year 2018-19 stands to be at INR 100.05 crore against 680.48 crore in the corresponding quarter of the previous financial year 2017-18. In terms of finance costs, the same has surged from INR 121.31 crore in Q3 FY18 to INR 291.93 crore in Q3 FY19.
Uttam Galva’s net loss in the first nine months of the financial year (Apr-Dec) 2018-19 has been increased to INR 1,477.5 crore against the loss of INR 585.70 crore in the corresponding period of the previous financial year.
Uttam Galva Steels is one of the largest manufacturers of cold rolled steel and galvanized steel in western India. The company is into the business of procuring hot rolled steel and processing it into cold rolled and further into galvanized steel and colour coated coils.
In 2017, company’s lead lender SBI (State Bank of India) had filed for the bankruptcy petition against Uttam Galva after the company defaulted on INR 1,486 crore of its total outstanding amount of INR 1,832 crore. The Mumbai-based listed steel company’s total dues stood at INR 6,880 crore as of September 2017.
However, in November 2018, SBI withdrew the insolvency petition against the company after Arcelor Mittal paid dues of INR 7,469 crore to clear outstanding debts of Uttam Galva and KSS Petron, two companies in which Lakshmi Niwas Mittal had been a promoter. ArcelorMittal cleared the debts to become eligible to bid for debt-laden Essar Steel Ltd.
Even though the flagship company has managed to come out of the insolvency case, two subsidiaries Uttam Value Steel and Uttam Galva Metallics are still under the Corporate Insolvency Resolution Process (CIRP), as they owe banks INR 3,200 crore and INR 2,200 crore, respectively.
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