Textiles manufacturer, Alok Industries witnessed its shares slump nearly 4 percent in trade on July 20, in reaction to the company posting weak financial results for the first quarter of FY24.

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Revenues declined 28 percent year on year to Rs 1,410 crore, while the earnings before interest, tax, depreciation and amortisation (EBITDA) tumbled to Rs 12 crore versus Rs 47 crore in the corresponding quarter of last year. EBITDA margins are at 0.9 percent versus 2.4 percent in the same quarter of last year. Net loss has widened to Rs 226 crore versus Rs 141 crore year on year.

The finance cost rose to Rs 154 crore versus Rs 117 crore in the same quarter of last year. Other income as well as other expenses have declined by Rs 15 crore and Rs 36 crore respectively.

During the quarter ended June 30, 2023, the Holding Company incurred a loss of Rs 221 crore. It has accumulated losses of Rs 21,507 crore and its current liabilities exceed its current assets by Rs 1,291 crore as at June 30, 2023.

The Board has appointed Ram Rakesh Gaur as the Chief Executive Officer and Vinod Sureka as the Joint Chief Financial Officer of the Company with effect from 20th July, 2023.

Alok Industries is a textile company with a presence in the cotton and polyester segments. The company is engaged in manufacturing of textile, including mending and packing activities; leather and other apparel products.