IL&FS Engg back in black with Rs 2.44 cr FY11 profit

IL&FS Engineering & Construction Company (IECC) Ltd, formerly known as Maytas Infra Ltd, has reported a consolidated net profit of Rs 2.44 crore for 2010-11, as against a loss of Rs 251.86 crore in the previous year.

Its total revenues slid marginally to Rs 1,133.22 crore compared to Rs 1,138.14 crore a year ago, though the sales income was up slightly at Rs 1,110 crore (from Rs 1,098.78 crore).

The company, originally promoted by Satyam founder Ramalinga Raju's kin, has been put under a new management by the Company Law Board as a result of the fraud in the IT company. With 34.56% stake, IL&FS group is now the promoter of the company while SBG Projects Investments Ltd holds a 32.39% non-promoter stake.

The company said it was confident of recovering Rs 342.11 crore given by the previous management as intercorporate deposit to Satyam Computer Services. It is of the opinion that an amount of Rs 1,230.40 crore listed as a liability in the Satyam accounts includes the funds owed to it.

IECC has already received Rs 23.59 as interest income on similar deposits to Maytas Properties. Following a CLB direction, IL&FS group acquired a 40% promoter stake in Maytas Properties in January this year.

It also entered into a one-time agreement with five banks for payment of half of the principal owed to them as of January 1, 2009. This accounted for Rs 110.21 crore.

The company scrip is trading at Rs 168.55, up 0.84% over its previous close of Rs 167.15.