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Gayatri Projects receives Rs 208 cr arbitral award

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The construction company announced that it received Rs 208 crore net of statutory deductions under the GoI scheme of monetisation of 'under litigation arbitral award' against bank guarantees.

The company along with its joint venture (JV) partner had been awarded an arbitration claim wofth Rs 703 crore including interests for its road project in Nagaland and Gayatri Projects' portion in the same was Rs 264 crore.

The company has now received 75% of the claim (including further interest of Rs 27.74 crore for the period from the date of award till the date of payment) after furnishing bank guarantees of similar amount.

"This inflow is in line with company's guidance of an inflow of Rs 2-3 billion under the Government of India (GOI) award monetisation scheme / conciliation scheme, Gayatri Projects (GPL) said in a BSE filing made during market hours today.

As per GPL's stated strategy, this money will be used towards repayment of term loans. Post the use of these proceeds, GPL's long-term debt would reduce by 27% from Rs 764 crore in H1FY21 to Rs 556 crore.

This is the first in a series of award monetization's company expects to receive under the various settlement schemes of GOI.

"The company remains committed towards balance sheet strengthening and reduction of long-term debt to a negligible amount," GPL added.

Gayatri Projects is the flagship company of the esteemed and well diversified Gayatri Group that has interests in infrastructure, power, hospitality, real estate and industry.

On a standalone basis, the company reported 58.5% drop in net profit to Rs 3.33 crore on a 14.4% rise in net sales to Rs 798.23 crore in Q2 FY21 over Q2 FY20.

The scrip shed 0.44% to Rs 33.90 on the BSE. It traded in the range of 32.60 and 35.75 so far during the day.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, November 24 2020. 14:16 IST