The company had a very quarter and an even poorer fiscal. It ended Q4FY14 with a net loss of Rs.6 crore v/s net profit of Rs.2 crore in Q3 and Rs.16 crore profit in Q4FY13. Though the 3% (YoY) fall in net sales and higher operating costs were also responsible, what really pushed the company into the red was the huge interest outgo at Rs.41 crore. The picture for the full year remains equally dismal. It ended FY14 with a consolidated net loss at Rs.75 crore v/s the net loss of Rs.22 crore in FY13. Apart from the 2% drop in net sales at Rs.2613 crore, once again the huge finance cost – Rs.196 crore proved costly. The company’s borrowing as at 31^st March 2014 stood at Rs.1276 crore, up 25%.

Four days ago, the company’s 100% subsidiary in Singapore sold 90% of its holding in its manufacturing subsidiary based in Cologne, Germany, at a consideration of around Rs 12 crore. The company has said that this will reduce the consolidated debt of McNally Bharat by around Rs.31 crore but this is much less than the Rs.257 crore rise it saw in its debt in FY14 over FY13. The stock price had surged on rumours that it had sold off its coal & mineral technology business in Singapore but once the company clarified that this rumour was untrue, the stock price fell and post the poor numbers, the stock on Friday closed 7% down.