PUNJ LLOYD

Punj Lloyd stock hit the deep red after it announced its Q3FY14 numbers on 1st Nov, wherein as against a widely expected improvement in performance, its net loss only went on to widen. The company ended the quarter with a consolidated net loss at Rs.67 crore, much higher than the net loss of Rs.18 crore for Q2FY13. The company, had a 5% rise in net sales at Rs.2861 crore and post the 14% rise in operating costs, 8% rise in finance cost and tax outgo declined by 89%, it posted a PBT at Rs.7 crore, down 59%. It was the Rs.70 crore loss on account of its minority interests in various firms which pushed the company into the red. The company has not spelt out the names of these firms but if this minority loss would not have been, the company could have ended the quarter with a net profit of Rs 2.24 crore, albeit very small, but at least better than being in the red.

The company has stated that it has an order backlog of Rs 20,891 crore. Its net debt stands at Rs.6047 crore. Challenges for the company continue and being deeply interlinked with economy, till the macro factors do not improve, the company will continue to face turbulent times. The high interest outgo and higher operating costs also demands more attention.