Kesoram Industries Ltd., a B.K. Birla Group company, trimmed its losses in 2016-17, closing the year with a net loss of Rs 124.1 crores against Rs 209.8 crore a year ago.
The company which operates in two segments, cement and tyres, said that finance costs declined from Rs 678 crores in 2015-16 to Rs 269 crores 2016-17. This was due to prepayment of debt.
Total revenue for the year stood at Rs 4353 crore against Rs 4671crore of the year before.
The company said in a press release that sales volumes and net sales realisations of the cement business came under stress due to subdued demand in areas services by the company. Increase in inputs costs also impacted margins.
Its tyre business realigned its manufacturing facilities after divesting its manufacturing unit in Uttarakhand. This business too was impacted by major increases in input costs in second half of the year. It makes tyres for two three wheelers as well as for off the road vehicles and commercial vehicles.
It may be mentioned here that in addition to divestment of its tyre facility, the company also hived off its rayon business (located at Tribeni in Hooghly district in West Bengal to a wholly-owned subsidiary. EOM
