Shivam Autotech Limited has approved a corporate term loan of INR 400 million to partially refinance existing debt and support working capital needs, according to a regulatory filing submitted to stock exchanges.
The company, which manufactures precision components for vehicle manufacturers, has been managing industry challenges such as fluctuating raw material costs and changing market conditions. The refinancing is part of broader efforts by auto component manufacturers to restructure debt portfolios and manage financial costs amid rising interest rates.
Financial records indicate that Shivam Autotech has been experiencing ongoing losses. In the quarter ended September 2024, the company reported a net loss of INR 110.9 million, an improvement from the INR 151.7 million loss in the same period the previous year. Sales during this quarter rose by 2.83% to INR 1,204.3 million, compared to INR 1,171.1 million in the corresponding quarter of the previous year.
In the subsequent quarter ending December 2024, the company reported a net loss of INR 118.6 million, down from INR 145.8 million in the same quarter the previous year. Sales declined by 6.70% to INR 1,127.4 million, compared to INR 1,208.3 million in the corresponding quarter of the previous year.
Additionally, in September 2023, Modulus Alternatives Investment Managers infused INR 1,050 million into Shivam Autotech, as part of a total commitment of INR 1,500 million, to support growth and working capital requirements.
The recent loan approval and previous investments reflect ongoing efforts to stabilize the company’s financial position amidst persistent losses.