Punj Lloyd on Tuesday reported a net loss of Rs 382.08 crore on a consolidated basis for the fourth quarter that ended on March 31, 2014, on the back of a decline in income and deferment of claim settlement on some overseas projects.
Punj Lloyd on Tuesday reported a net loss of Rs 382.08 crore on a consolidated basis for the fourth quarter that ended on March 31, 2014, on the back of a decline in income and deferment of claim settlement on some overseas projects.
The diversified EPC (engineering, procurement and construction) conglomerate had reported a net profit of Rs 15.31 crore for the corresponding quarter a year ago.
Total income from operations dropped 26 per cent to Rs 2,398.67 crore in the quarter under review over Rs 3,241.92 crore in the corresponding period previous fiscal year.
Total expenses, however, came down to Rs 2,646.08 crore in the fourth quarter of last fiscal year (2013-14) over Rs 3,059.38 crore.
The company in a statement said the "profits at the group level have been impacted primarily on account of deferment of settlement of company's claims on certain overseas projects and the company has accounted cost overruns on Conservative approach".
As per a report filed on the BSE, the company has mentioned "recoverability of claims aggregating to Rs 38,986 lakh (Rs 389.86 crore)" on the basis of reports from independent auditors of the financial statements of the company's branch in Thailand.
Henceforth, the company will focus on settlement of longstanding claims from various projects to improve its working capital cycle, it said.
The company also announced that its director and group CEO J P Chalasani has been appointed by its board of directors as managing director and group CEO with immediate effect.
"While the last 2-3 years have had their share of challenges, we are optimistic of improved performance going forward with a stable government at the Centre. Also we expect the new government will provide an environment conducive togrowth and revive the investment climate particularly in the infrastructure and energy sectors," Punj Lloyd group chairman Atul Punj said.
Winning a Rs 1,270-crore expressway project in Yemen and another Rs 3,254 crore buildings and infrastructure project in Libya reflects the company's strategy of pursuing global markets and strengthening group operations by focussing on project earnings, Mr Punj said.
"We are optimistic about our future growth and the group will continue to explore opportunities in other markets in an endeavour to expand global footprint."
The group's order backlog stood at Rs 20,222 crore in March this year.
For the entire fiscal year, the group's loss widened to Rs 548.23 crore against Rs 7.21 crore in FY13.
The EPC company offers services in energy and infrastructure sectors along with engineering and manufacturing capabilities in the defence sector.
Shares in Punj Lloyd, on Tuesday, ended at Rs 42.90 apiece on the BSE, up 4 per cent from the previous close.
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