VBC Ferro Alloys Ltd has decided to suspend the manufacturing operations of its plant in Andhra Pradesh due to power shortage.
After taking into consideration the energy deficit situation estimated by the power distribution companies and the current supply, its operations have been suspended.
The company stated that its manufacturing operations will resume after power situation improves in the State or when alternative arrangements are made.
The Board of Directors of the company, while taking the quarterly performance on record, at its meeting held on November 3, decided to close the unit.
M.S.Lakshman Rao, Managing Director of the company, said, “The production was seriously affected during the quarter due to severe power cuts and load restrictions. Therefore, the board has decided to suspend the manufacturing operations till power situation improves in the State or some alternative arrangements are made for power supply.”
Impaired by poor power supply situation, the company has posted a loss of Rs 2.75 crore for the second quarter ended September 30, 2012 as against a profit of Rs 2.80 crore for the corresponding quarter.
The income for the second quarter has dipped down to Rs 4.75 crore as against Rs 28.14 crore for the corresponding quarter last year.
The company is only into manufacture of ferro alloys, a power-intensive sector. Impacted by the developments, the company shares ended the day at Rs 126, down 3.82 per cent.
The company shares were trading down 3.82 per cent at Rs 126.75 at BSE.