Zetwerk Q2 loss widens 43% to Rs 88 cr | India Business News

BENGALURU: Newly listed Zetwerk Manufacturing Businesses’ losses widened 43% year-on-year to Rs 88 crore in the September quarter, from Rs 61.6 crore a year earlier, due to higher employee stock-option expenses and finance costs.Total income grew 18% to Rs 4,652.7 crore from Rs 3,936.5 crore. These were its first quarterly results since listing on Oct 23.Employee stock-option charges rose nearly fivefold to Rs 64.4 crore from Rs 13 crore. Zetwerk attributed the increase to one-off vesting linked to its IPO.Losses from continuing operations more than doubled to Rs 53.8 crore from Rs 20.6 crore a year earlier. The remaining Rs 34.3 crore loss came from its discontinued civil infrastructure business, which it plans to sell.The overall loss narrowed from Rs 733 crore in the June quarter. That quarter included a Rs 639 crore provision covering doubtful dues, other assets and expected project losses in the infrastructure business.Zetwerk’s manufacturing order book rose 67% year on year to a record Rs 14,595 crore. It won orders worth Rs 4,613 crore during the September quarter, up 44%. The company said the order book typically converts into revenue over about two years.“Our manufacturing order book is at an all-time high of Rs 14,595 cr, and repeat customers contributed 83% of first-half revenue,” said cofounder and CEO Amrit Acharya.Manufacturing revenue rose 15% to Rs 2,546 crore in the quarter. Its own factories accounted for 60% of manufacturing revenue in the first half, up from 36% a year earlier. International customers contributed 41% of first-half manufacturing revenue, against 36% last year. The company said a greater share of in-house production, international customers and higher-margin products helped improve margins.Zetwerk supplies industrial and consumer products through its own factories and outside suppliers. Its network includes 26 owned facilities across India, the US, Spain and Germany.The company expects finance costs to decline after debt repayment using IPO proceeds, with the full benefit visible from the March quarter. Its IPO included a Rs 2,830 crore fresh issue.