The Rs 10-stock of Ramsarup Industries Ltd on Tuesday dipped again and finished 9.69 per cent lower to close at Rs 11.09 on the BSE as the steel wires and TMT maker announced slip in net profit in the April-June quarter.

The counter saw its 52-week low on August 8 at Rs 10.30. During the session on Tuesday it touched the trough at Rs 10.67, above its current lower circuit of Rs 9.83. Traders said the stock was in trade-to-trade segment with a price band of 5 per cent in January but subsequently came out of it.

The Kolkata-based company had applied for restructuring of it existing debt under corporate debt restructuring mechanism on December 6, 2010. The CDR package is currently being processed.

In the quarter to June 30, Ramsarup reported a loss of Rs 44.61 crore on a mounting interest burden (Rs 39 crore) and falling revenue. The company's paid up equity capital stands at Rs 35 crore. It also has Rs 22.5 crore worth of 5 per cent redeemable non-cumulative preference share capital and redeemable cumulative worth over Rs 4 crore.

According to Mr Rajesh Agarwal, head of research at Eastern Financiers, the pressure of interest costs has drained out the profitability of the company. “A substantial portion of the promoters' equity is pledged. There have been rumours about promoters yielding operating or mine assets or majority stake. A possible bail-out package will decide whether the company would come to a grinding halt or keep moving,” he added.

The company recorded a negative EPS of Rs 12.73 in the first quarter.

The redeeming factors in the past quarter, however, were that against the FY11 fourth quarter loss (Rs 101 crore) has come down and the promoters could reduce the pledges (to 23 per cent from 68 per cent an year ago).

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