Punj Lloyd sees operating profit up 13-15%
Construction firm Punj Lloyd Ltd expects its operating profit to rise 13-15 per cent in the year to March 2007, but net profit may fall as it absorbs the cost of its recent acquisition, its chairman said.
MUMBAI: Construction firm Punj Lloyd Ltd expects its operating profit to rise 13-15 per cent in the year to March 2007, but net profit may fall as it absorbs the cost of its recent acquisition, its chairman said.
The company bought 88 percent of Singapore-based SembCorp Engineers & Constructors for $22.3 million in June. The acquisition will start to contribute to earnings after a year.
"We would like to keep it (net profit) higher but our overall numbers will be lower because of our acquisition," Atul Punj said.
Its shares, which were initially down about 1 per cent, extended losses on the news and closed 1.65 per cent lower at 740 rupees while the main BSE index eased 0.2 per cent.
"By (financial year 2007/08) we should start moving up," Punj said, adding operating profit would rise this year on revenues from pipeline and other turn-key projects.
The company, which earns about three quarters of its revenue overseas, had orders worth about 119 billion rupees on July 31.
Punj said the company was venturing into construction of strategic oil storage terminals. At present it builds terminals to store liquefied natural gas.
"With oil prices spiralling, many countries are building strategic oil storage to cater to 45 to 60 days of requirement... we are looking at this segment," he said.
Punj said the company was expecting an order from Indian Oil Corp for the state-run refiner's proposed petrochemicals project in Haldia in the eastern Indian state of West Bengal.
"We are also looking at petrochemicals projects in Singapore, the Middle East and the Caspian region," he said.
The company bought 88 percent of Singapore-based SembCorp Engineers & Constructors for $22.3 million in June. The acquisition will start to contribute to earnings after a year.
"We would like to keep it (net profit) higher but our overall numbers will be lower because of our acquisition," Atul Punj said.
Its shares, which were initially down about 1 per cent, extended losses on the news and closed 1.65 per cent lower at 740 rupees while the main BSE index eased 0.2 per cent.
"By (financial year 2007/08) we should start moving up," Punj said, adding operating profit would rise this year on revenues from pipeline and other turn-key projects.
The company, which earns about three quarters of its revenue overseas, had orders worth about 119 billion rupees on July 31.
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Punj said the company was venturing into construction of strategic oil storage terminals. At present it builds terminals to store liquefied natural gas.
"With oil prices spiralling, many countries are building strategic oil storage to cater to 45 to 60 days of requirement... we are looking at this segment," he said.
Punj said the company was expecting an order from Indian Oil Corp for the state-run refiner's proposed petrochemicals project in Haldia in the eastern Indian state of West Bengal.
"We are also looking at petrochemicals projects in Singapore, the Middle East and the Caspian region," he said.
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