Electrosteel Castings Ltd reported a loss of INR 10.78 crore during the quarter to December 31st against a profit of INR 47.45 crore in the corresponding quarter of the previous financial year. Sequentially too, its bottom line slipped; during the quarter to September 30, it had reported a profit of INR 19.36 crore.

According to Mr Rajesh Agarwal head of research at eastern financiers of Electrosteel Castings results have been almost in line with apprehensions; considering the demand environment faced by the pipe maker it was not surprising. He said that “The area of concern, however, is the huge liability towards foreign exchange losses amounting to INR 129.23 crore on MTM basis.”

The Mark to Market losses on forward contract as on December 31, 2011, stood at INR 123.57 crore. MTM losses on outstanding options contracts entered into based on underlying foreign currency to hedge the associated currency during the quarter, stood at INR 5.66 crore.

(Sourced from BL)