Leading infrastructure firm Punj Lloyd today reported a
consolidated net loss of Rs 17.92 crore for the July-September quarter, largely
due to over 36 per cent increase in its finance outgo. The company had reported
a net profit of Rs 24.74 crore during the corresponding quarter of the last
fiscal.
Net sales of the company, however, increased by 14.77 per
cent to Rs 2,728.06 crore during the quarter vis-a-vis Rs 2,376.91 crore of the
second quarter of FY'12, it said in a filing to the BSE. During the quarter,
Punj Lloyd's finance costs increased by 36.84 per cent to Rs 207.97 crore,
while it’s total expenditure was up 11.47 per cent at Rs 2,556.66 crore.
"We are focusing on bringing down working capital and
debt to improve profitability. However, in current scenario, this is expected
to take some time. Improvement in the receivables will help us in managing our
working capital," a separate company statement quoted Chairman Atul Punj
as saying. The Punj Lloyd chairman also said that "the macro environment
continues to be challenging both domestically and internationally with high
interest rates, volatile input costs, liquidity concerns and currency
volatility. We are trading carefully...”
Besides, company's auditor Walker, Chandiok & Co
observed in its review report that Punj Lloyd's current assets as of September
30, 2012, includes dues representing claims of Rs 243.03 crore recognized
during the earlier years and liquidated damages of Rs 7.30 crore deducted by
the customer. "In view of the uncertainty over the ultimate outcome of the
matter, we are unable to comment on ultimate collection and recoverability of
the same and its impact, if any, on the financial results for the period ended
September 30, 2012," the auditor said.
Commenting on the auditor's observation, the company said
that the matter is disputed and Punj Lloyd and its customer, ONGC, has referred
the issue to an Outside Expert Committee "which is likely to resolve the
issue in an expeditious manner". The auditor has also drawn attention to
an amount of Rs 58.02 crore, withheld by a customer, but carried by the company
as trade receivables.
On this issue, the company said that its management is
taking appropriate steps for recovery of the money and "believes that
these accounts are fairly stated".
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
