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| Punj Llyod loss in FY09 due to SABIC case: Atul Punj |
| Press Trust of India / New Delhi May 19, 2009, 17:48 IST |
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Engineering firm Punj Llyod today said it had reported a loss of Rs 253 crore in the just concluded quarter due to the negative impact of around 28.5 million pounds (Rs 220 crore) incurred on a litigation between UK-based subsidiary Simon Carves and SABIC Petrochemicals.
"There was a unplanned and unexpected negative impact due to a litigation with SABIC Petrochemical and our subsidiary Simon Carves. We just opted to write it off and stop speculation once for all," Chairman Punj Llyod Atul Punj told reporter while addressing a press conference.
Simon Carves had commenced the adjudicating proceedings against SABIC Petrochemicals in January in UK courts. The proceedings were aimed at seeking restitution of 28.5 million pounds. But the UK adjudicator ruled in favour of SABIC. "While, we are still in Court, the situation has not changed legally from what it was four months ago. We are aiming to perform better than earlier as opportunities are large and markets environments are supporting," he said.
The company had posted a net loss of Rs 253 crore for the fourth quarter ended on March 31 against a net profit of Rs 119 crore in the same quarter last fiscal. It suffered a net loss of Rs 225 crore during 2008-09 against Rs 360 crore profit earned in the previous fiscal.
Punj said, "Our outstanding bids are $7-8 billion (Rs 40,000 crore) and current order book is around Rs 20,803 crore. We are not witnessing any slowdown."
While talking about the reality business, "The reality sector is affected due to recession but our exposure in the sector is not much. We negotiating for getting out of a reality project called Ramprastha in NCR area. But nothing has been finalised."
About the recruitment plans, he said, "Our focus is mainly on training. We have planned to train 880 personals and would be recruiting 150 to 200 people. During this fiscal our recruitments should not be less than 15 per cent of our existing workforce of around 15,000 people." Punj also mentioned about the defence projects where the company is planning to supply guns with a diameter of 155mm to Indian Army. But for trial for that project would start within four to six weeks from now which would be completed in about 18 months. The commercial deal can be concluded only once the trials would be over.
"We are also evincing interest in bidding for various airport projects not only in the country but across the globe," he said adding that Oman is one such potential market.
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