Punj Lloyd shrinks as Q1 loss widens on year

NEW DELHI: Shares of Punj Lloyd Ltd slid about 17 per cent in trade on Monday after the engineering conglomerate reported widening of its net loss to Rs 597.84 crore for the April-June quarter on sharp decline in income.

The stock ended the day 12.20 per cent lower or Rs 3.85 at Rs 27.70.

It had reported a net loss of Rs 363.92 crore for the first quarter of the previous fiscal.

The stock hit an intraday low of Rs 26.30, down 16.64 per cent, on the BSE.

The company detailed its April-June earnings on Sunday.

Its total income from operations fell by 40.98 per cent to Rs 657.35 crore during the quarter under review, from Rs 1,113.83 crore in the same quarter of the last fiscal year, the company said in a BSE filing.

Total expenses for the period stood at Rs 1,050.58 crore against Rs 1,445.58 crore a year ago.

"This quarter's financial performance has seen some impact due to client-related issues in the offshore business and also on account of incremental working capital requirement to support the cash flows. With the banks and client issues having been resolved now, the company will show a significant improvement progressively in the subsequent quarters," said Atul Punj, Chairman, Punj Llyod Group.

"We are seeing a lot of opportunities in the defence business and with our capabilities, we are confident of being a major player in this sector and making the government's 'Make in India' programme a reality," he added.

The Punj Lloyd Group offers EPC services in energy and infrastructure along with engineering and manufacturing capabilities in the defence sector.

(With inputs from agencies)