Punj Lloyd tanks

Punj Lloyd is a big loser currently, down almost 7.5% at Rs.39.70, closer to its intra day low at Rs.38.20. Its 52-week low is at Rs.20.25.

The stock is down after the company 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.