McLeod Russel India Ltd registered 13 per cent drop in standalone net profit at ₹129 crore for the quarter ended September 30, 2021, as compared with ₹148 crore in the same period last year.

Revenue from operations on standalone basis increased by around three per cent at ₹422 crore (₹408 crore).

On a sequential basis, however, the company had posted a net loss of around ₹58 crore for the quarter ended June 30, 2021.

Its financial position continues to be under stress, it said in the notes to accounts on Friday.

The Inter-Corporate Deposits aggregating to around ₹2,802 crore are outstanding as on September 30.

“These have resulted in mismatch of company’s resources vis-a-vis its commitments, causing hardship in servicing short term and long-term debts and meeting other liabilities,” it said.

The corporate insolvency proceeding initiated against the company earlier by Techno Electric & Engineering Company has been withdrawn. Following this, the lenders reinitiated the resolution process of the company in terms of circular dated June 7, 2019 issued by the Reserve Bank of India. Inter-Creditor Agreement (ICA) for arriving at and implementing the resolution plan has since been confirmed and signed by all the lenders.

The management is hopeful that with the bankers support in restructuring their debt to a sustainable level and other ameliorative measureswould help the company generate sufficient cash flow.

The company’s scrip closed at ₹30.10, up by 4.51 per cent on the BSE on Friday.

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