Ramky Infra

Ramky Infra hit a  new low after it posted a set of poor Q1FY14 numbers. It had a net loss of Rs.34 crore v/s net profit of Rs.51 crore in nQ1FY13. The company has explained that the loss was mainly on account of incremental provisions made as a matter of abundant caution on its currently perceived risks in relation to certain long outstanding/ non-moving receivables including retention money and amounts with held by the customers, advances to suppliers and sub-contractors, project inventory and project work-in-progress aggregating Rs.55 crore. EBITDA for the quarter stood at 43.68 crore as compared to Rs. 161.72 crore in corresponding period of last year. Currently, its order book stands at Rs. 11,357 crore and this is lower than the order book at end of FY13, which stood at Rs.11,963 crore. Its debt stands at around Rs.2270 crore.

There has also been a downgrade by Crisil. The rating agency downgraded ratings on the bank facilities of Ramky to 'CRISIL D' from 'CRISIL BB/Negative/CRISIL A4+'. The rating downgrade reflects recent delay by the Ramky group in meeting its repayment obligation, the rating agency said. The delay has been caused by the group's weak liquidity, mainly on account of sustained lengthening of its working capital cycle. The rating agency has said that it expects the group’s working capital to remain stretched in the near term, due to large number of projects under implementation, and decline in mobilization advances due to decreasing order book. The current quarter could also remain challenging.