The woes of Amte Auto do not seem to end. The company declared its very poor performance for second quarter and six months ended 31st March 2016 (year ending on 30th Sept). With a 33% (YoY) drop in net sales at Rs.609 crore and an interest outgo of Rs.290 crore, the company ended the quarter with a net loss of Rs.529 crore v/s profit of Rs.130 crore in previous Q2. An exceptional expense of Rs.439 crore v/s gain of Rs.180 crore also aided in pushing the company into the red.

The company ended its six months with a 54% drop in net sales at Rs.6675 crore and net loss of Rs.1133 crore v/s loss of Rs.987 crore (YoY). Its interest outgo for the HI was at Rs.749 crore and borrowings stood at Rs.12,500 crore.

Amtek is caught in a quagmire of debt. It is working on reducing the debt and hopes to make major repayments by September’2016. In this direction, the company has already appointed Morgan Stanley as its advisor. It plans to sell its overseas business by as early as September this year, marking a few non-core assets for sale too. Thus at least till end of its current year, we cannot expect any upside. The trigger will be sale of its overseas plant and non-core assets.