Amtek Auto Ltd.'s net loss widened to Rs 889 crore in the first quarter ended June 30 from Rs 320 crore in the year-ago period, due to weaker sales.
The sales of the auto component maker fell 23 percent year-on-year to Rs 424 crore and operating margins fell to single-digit level of 8.4 percent as against 15 percent in the same quarter last year, according to a company release.
Amtek Auto also reported an exceptional loss of Rs 505 crore arising due to a mark down on inventories that may not be usable in the company's reduced production capacities.
In order to cut interest costs and debt, the company announced on Friday that its unit Amtek Global Technologies Pte. Ltd. has entered into an arrangement with Liberty House to sell its U.K.-based plants.
Amtek Auto is one of the 12 stressed accounts identified by the Reserve Bank of India for proceedings under the Insolvency and Bankruptcy Code.
Also Read: Amtek Auto: The Odd One Among RBI's 12 Bad Apples
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