ABG Shipyard

ABG Shipyard, the Ahmedabad based ship building company has sailed into really rough sea in the bygone Q4FY15. It was doomed for the quarter right from the topline, which toppled 95% to a mere Rs.20 crore. On top of that, its costs came in at Rs.281 crore and interest outgo was at Rs.218 crore; clearly the company was headed for the deep red. And losses it did make, surpassing YoY and QoQ losses. Net loss came in at Rs.375 crore v/s loss of Rs.49 crore in Q3 and loss of Rs.294 crore in Q4FY14. It ended FY15 with a gargantuan consolidated net loss of Rs.901 crore. Debt currently stands at Rs.6600 crore.

The poor performance is explained by the fact that construction of vessels was affected due to non-availability of working capital finance, leading to labour issues. Currently, the company is trying to complete construction of few select vessels only – this means, we could see red in Q1 too.

The company is a part of the Corporate Debt Restructuring (CDR) scheme and as per that, priority debt to the tune of Rs.375 crore has been disbursed. It allotted some 26 crore 0.01% CCPS to CDR lenders for conversion of funded interest term (FTL) loan during Fy15. Another 29 lakh s equity shares at a premium of Rs.265.92 were allotted to the CDR lenders under the same FTL.