PUNJ LLOYD

Punj Lloyd posted a set of dismal numbers for Q4FY14, with consolidated net loss coming in at Rs.382 crore v/s a net profit of Rs.15 crore it had reported in Q4FY13. This loss was on account of a 26% (YoY) fall in total income at Rs.2399 crore and also on account of deferment of settlement of company's claims on certain overseas projects and the company has accounted cost overruns on conservative approach.

The company has stated that recoverability of claims stands at Rs 390 crore  on the basis of reports from independent auditors of the financial statements of the company's branch in Thailand. Henceforth, the company plans to focus on settlement of longstanding claims from various projects to improve its working capital cycle. The only silver lining here is that recently it won a Rs.1270 crore expressway project in Yemen and Rs.3254 crore order for buildings and infra in Libya. The group’s order backlog currently stands at Rs.20,222 crore. Yet, the moot question here is not about orders but about execution and that continues to remain a question mark for the market based on past experiences. The company ended FY14 with a loss of Rs.548 crore, up from the loss of Rs.7.21 crore in FY13.