Alok Industries, a textile manufacturer, recently reported a deeper consolidated net loss for the quarter ended December 31, 2024. The company’s net loss stood at ₹273 crore, compared to ₹229.92 crore in the same quarter last year. This was accompanied by a significant decline in consolidated revenue from operations, which dropped by 31.06% to ₹863.86 crore from ₹1,253.03 crore in the corresponding quarter.
The pre-tax loss also widened to ₹268.11 crore in Q3 FY25 from ₹228.74 crore in Q3 FY24. For the nine months ended December 31, 2024, the consolidated net loss expanded to ₹741.96 crore from ₹630.89 crore, while revenue fell 31.8% to ₹2,755.82 crore from ₹4,040.28 crore year-on-year.
Total expenses decreased by 23.15% to ₹1,138.52 crore in Q3 FY25, with the cost of materials consumed dropping significantly by 43.81% to ₹457.77 crore. However, employee benefit expenses rose by 28.74% to ₹133.80 crore during the quarter.
A major setback for the company was a tornado that struck its spinning plants in Silvassa in July 2024, causing damage worth ₹61.42 crore to assets and inventory. However, the company has received ₹55 crore as interim insurance payment.
Despite facing accumulated losses of ₹22,800.65 crore, Alok Industries maintains that it is a going concern, with current assets exceeding current liabilities by ₹463.41 crore. The company also reported an EBITDA loss of ₹15.23 crore for the quarter and ₹21.29 crore for the nine months ended December 31, 2024.
In trading activities, the shares of Alok Industries Limited closed at ₹20.40, down by ₹0.48 or 2.30% on the NSE today.
It is evident that Alok Industries is currently facing financial challenges, but the company remains optimistic about its future prospects. With a strategic approach and effective risk management, the company aims to overcome the hurdles and regain its financial stability in the coming quarters.
