Gayatri Project slips on defaulting payments

Gayatri Projects declined 1.08% to Rs 32.20 after the company said it has defaulted on an amount of Rs 34.77 crore and its four accounts have turned into non-performing assets (NPAs) as on 30 June 2021.

The company has a tight liquidity situation and is facing cash flow mismatch on account on delay in payments from the state governments. The company has long outstanding receivables pending from various states governments. As a result of these ongoing payment delays, the company has been unable to serviceits debt obligations dues as on 30 June 2021 to 4 out of 10 banks of the consortium.

The company said it is working towards resolving the NPA issue and is expected to get upgraded to standard category by end of this month. The company is also expecting cash inflows shortly from arbitration awards which are stuck in various forums due to Covid 19 pandemic.

Gayatri Projects has interests in infrastructure, power, hospitality, real estate and industry. On a consolidated basis, the company's net profit stood at Rs 18.64 crore in Q4 FY21 as against a net loss of Rs 80.99 crore psoted in Q4 FY20. Net sales jumped 49.4% to Rs 1,360.1 crore in Q4 FY21 over Q4 FY20.

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