Punj Lloyd Q3 loss widens to Rs 2,795 cr on loan defaults, project delays

Punj Lloyd

Infrastructure company Punj Lloyd's loss widened to Rs 2,795.06 crore in the third quarter of 2018-19 from Rs 183.9 crore in the year-ago quarter, the company informed bourses on Wednesday.

Its income from operations in the October-December period declined to Rs 511.04 crore, over Rs 1,169.47 crore in the corresponding quarter of previous fiscal.

Punj Lloyd further said that there were delays, defaults in repayments of substantial dues to lenders.

"Company's current liabilities exceeded its current assets and net worth of the company was also eroded as at December 31, 2018," Punj Lloyd said.

The company, as part of its financial restructuring to pare debt and strengthen balance sheet to better for equipped for bidding new projects, had submitted a scheme of restructuring with its lenders.

ALSO READ: Punj Lloyd Q2 net loss widens to Rs 14.65 bn on defaults in repayments

Clarity on the structure of restructuring proposal was under consideration and response was awaited from lenders, it said.

Additionally, to improve operational efficiencies, Punj Lloyd said that it was taking various measures, including monetising its identified assets as avenues of raising funds.

Due to delay in restructuring, the firm was unable to generate the expected profits in the current period, and had to revise its estimates for future taxable income, it said.

Punj Lloyd Group is an international conglomerate offering EPC services in energy and infrastructure along with engineering and manufacturing capabilities in the defence sector.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel