IL&FS Engineering and Construction, earlier called Maytas Infra, fell 57 per cent in the last one year. Despite being taken over by a sound promoter (IL&FS group), the company has had a slow comeback in the last few years, post the Satyam saga.
But order flow, especially in roads and railway segments picked up in recent times.
That said, not all has been well on the financial front. In FY12 so far, despite a 36 per cent increase in sales to Rs 1,428 crore, the company slipped to losses (Rs 85 crore) due to steep increase in subcontracting expenses and interest costs. The company has sought to extend its financial year 2011-12 till September to restructure its capital under a scheme of arrangement.
Meanwhile, given its burgeoning debt, IL&FS Engineering also tried to stall the merger of Mahindra Satyam and Tech Mahindra through a petition in the State high court.
In its avatar as Maytas Infra, the company had lent Rs 343 crore as inter corporate deposits to Satyam Computer Services. This amount has been qualified in its audit report. The property arm of the company had also extended some loan. The company is now claiming a total of Rs 1,230 crore from Mahindra Satyam as dues.