Punj Lloyd losses widen

The top loser currently is Punj Lloyd. The stock is down 14% at Rs.27.15 with intra day lows at Rs.26.30. Its 52-week low is at Rs.20.75.

The company reported a very disappointing performance for Q1FY16 with its net loss widening to Rs.598 crore from Rs.364 crore (YoY). This was on the back of a 41% drop in total income earned at Rs.657 crore.  

This was mainly on account of increase in working capital need to support the cash flows and issues with some of its clients in the offshore business. It incurred cost overruns to the tune of Rs.736 crore due to design changes and consequent changes in the scope of work Heera Redevelopment project with Oil and Natural Gas Corporation. The dispute is not yet resolved though it is hopeful of getting it resolved soon.