India Steel Market Watch
November 16: The net loss incurred by Visa Steel stood at Rs 152.87 crore in the second quarter (Q2) of 2015-16, up 158.60% from a net loss of Rs 59.11 crore in the same period last year. In the preceding quarter ended June 30, 2015 as well, Visa Steel reported a net loss of Rs 119.35 crore.
There was a decrease in income from operations too. In Q2 of 2015, the revenue generation stood at Rs 218.91 crore, down 18.8% against Rs 269.84 crore in Q2 of 2014-15.
During the first half (April-September) of 2015-16, the net loss stood at Rs 272.22 crore, down 246.5% compared to Rs 78.55 crore during the same period last year.
Like many other steel companies, Visa Steel is also suffering from lack of demand and financial crisis. In October, the company announced that it had decided to invoke strategic debt restructuring (SDR) in accordance with the Reserve Bank of India. SDR is introduced if the borrower is unable to achieve the viability milestones or adhere to "critical conditions" stipulated in the restructuring package. The debt on the company's books as on March 2015 was in excess of Rs 3,000 crore.