Shares of IL&FS Transportation Networks (ITNL) plunged 9% to Rs 128, also their 52-week lows on the BSE, after the company reported a sharp 98% year-on-year (Y-o-Y) decline in consolidated net profit at Rs 2.90 crore for the quarter ended June 30, 2015 (Q1), due to higher interest and raw material costs.
The company, engaged in construction of roads and highways business, had posted a profit of Rs 138 crore in the year-ago quarter.
Total income from operations in the quarter grew by 5% to Rs 1,644 crore against Rs 1,564 crore in the corresponding quarter of previous year.
The raw material costs increased nearly three-fold to Rs 69 crore, while finance costs rose 23.7% at Rs 560 crore over the previous year's corresponding quarter.
Meanwhile, in a separate regulatory filing, the company said that Jharkhand Infrastructure Implementation Co Ltd, a subsidiary of the company signed a concession agreement with the government of Jharkhand for development of 6 laning of Ranchi Ring Road, Section VII from Kathitanr to Karma comprising 23.575 kms on a built-operate-transfer (BOT) basis.
The project is on annuity basis with a concession period of 17.5 years, including construction period of 2.5 years. The estimated cost of the project is Rs 587.60 crore. The company shall receive annuity of Rs 111.64 crore per annum upon completion of the project.
At 10:29 AM, the stock was down 7% at Rs 131 on the BSE. A combined 690,359 shares changed hands on the counter on the BSE and NSE.