In Short:
Williamson Magor & Co, part of the Khaitan family group, defaulted on payments of Rs 164.78 crore to banks and financial institutions in the last fiscal quarter. The company’s total debt was Rs 513.67 crore as of March 31, 2024. It reported a net loss of Rs 15 crore in Q3FY24, leading to doubts about its ability to continue operating. The group lost control of Eveready two years ago.
Financial Trouble for Williamson Magor & Co
Oh, what a sticky situation Williamson Magor & Co finds itself in! The investment arm and holding company of the Khaitan family-led Williamson Magor group has defaulted on a payment of Rs 164.78 crore towards loan facilities from banks and financial institutions for the fourth quarter of the last fiscal year.
Debt Troubles and Defaults
The Kolkata-based company revealed in a stock exchange filing that its total financial indebtedness, including short-term and long-term debt, amounted to a whopping Rs 513.67 crore as of March 31, 2024. Lenders such as HDFC Bank, ICICI Bank, and Punjab National Bank are among those owed money by Williamson Magor & Co.
This isn’t the first time the company has fallen behind on loan repayments. In fact, they also defaulted in the third quarter of the previous fiscal year. Yikes!
Financial Struggles and Losses
Following the announcement of their third quarter results, Williamson Magor & Co explained that their financial performance had been negatively impacted by external factors beyond their control. They reported a net loss of around Rs 15 crore for Q3FY24, a stark contrast to the net profit of Rs 20 crore in Q3FY23. Revenue from operations also took a hit, dropping to Rs 52.54 lakh from Rs 12.30 crore in the same period the previous fiscal year.
To make matters worse, auditors have raised concerns about the company’s ability to continue as a going concern. It’s a tough spot to be in, for sure!
Changing Landscape
It’s worth noting that the Williamson Magor group, which has been facing financial stress, lost control of Eveready, the country’s largest dry cell battery maker, a couple of years ago. In a significant turn of events, the Burman family, known for Dabur India, took over as promoters of Eveready Industries, ousting the Khaitans from their position.
It’s a tumultuous time for Williamson Magor & Co, and only time will tell how they navigate through these choppy waters.
