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High interest rates leading to margins pressure has taken a toll on the financial performance of IVRCL Ltd during the second quarter ended September 30, 2011, with both net profit and revenues taking a hit.
The Hyderabad-based engineering and construction company has registered a steep fall in its net profit at Rs 8.13 crore for the second quarter ended September 30 against a net profit of Rs 23.28 crore for the corresponding quarter last year.
The company's net income for the September quarter this year was marginally lower at Rs 1,046.11 crore against Rs 1,074.54 crore for the corresponding quarter last year.
Mr E. Sudhir Reddy, Chairman and Managing Director of IVRCL, in a statement said that during the quarter, the company invested Rs 5.21 lakh constituting 51 per cent of shareholding in Saptashiva Solar Ltd, which has now become a company subsidiary.
The board of directors of the company at a meting on October 31 has accorded in- principle consent for the amalgamation of IVRCL Assets & Holdings Ltd with the company and demerger of manufacturing factory of the company and real estate activity of IVRCL A&H into separate companies. Due to pending clearances, there has been no change in the way results have been reported during the quarter.
The company has also intimated that during the quarter Income-Tax authorities had carried out search operations across the company offices and sought further clarifications on the records.
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