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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 its 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 recognised 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”.
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