Punj Lloyd drops as client issues notice to terminate a contract

Punj Lloyd lost 1.14% to Rs 26 at 14:53 IST on BSE after the company said that PTT Public Company has issued a notice of termination for a transmission pipeline contract.

The announcement was made after market hours on Monday, 24 February 2014.

Meanwhile, the S&P BSE Sensex was up 56.32 points or 0.27% at 20,867.76.

On BSE, so far 2.73 lakh shares were traded in the counter as against average daily volume of 7.07 lakh shares in the past one quarter.

The stock hit a high of Rs 26.65 and a low of Rs 25.80 so far during the day. The stock had hit a 52-week high of Rs 57.80 on 9 May 2013. The stock had hit a record low of Rs 20.25 on 4 September 2013.

The small-cap company has equity capital of Rs 66.42 crore. Face value per share is Rs 2.

Punj Lloyd said that in relation to the fourth transmission pipeline contract (FTP Contract), awarded by PTT Public Company, Thailand to the company, the client has issued a notice of termination for the said contract. Punj Lloyd said it has initiated the legal process to protect its interest fully, as it believes that the action of the client is unlawful and not in accordance with the contract.

Punj Lloyd reported a consolidated net loss of Rs 139.48 crore in Q3 December 2013 as against net profit of Rs 8.77 crore in Q3 December 2012. Net sales declined 2.3% to Rs 2710.76 crore in Q3 December 2013 over Q3 December 2012.

The Punj Lloyd Group is a diversified international conglomerate offering engineering, procurement and construction (EPC) services in energy and infrastructure along with engineering and manufacturing capabilities in the defence sector.

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