Punj Lloyd suffers Rs 227 cr loss after tax in Q3

• Punj Lloyd continues to win prestigious orders and expand its order book 
• Globally balanced operations, diversified business presence drive opportunity despite a challenging macro environment

Punj Lloyd Group, the diversified engineering, procurement & construction conglomerate, today announced its financial results for the third quarter of FY 2009 at its Board of Directors meeting today.

9M FY2009 Financial highlights

• Consolidated total income was Rs 8,756 crore up by 59% compared to Rs 5,503 crore in 9M FY2008. 
• EBITDA was at Rs 447 crore in 9M FY2009 compared to Rs 489 crore in 9M FY2008.
• PAT for 9M FY2009 at Rs  29 crore compared to Rs 241 crore in 9M FY2008. 
• Basic EPS for 9M FY2009 was Rs. 0.57.

Third quarter financial highlights

 

• Revenues up 43% to Rs. 3,143 crore as compared to Rs. 2,163 crore during the corresponding previous period (Q3 FY 2008).
• EBIDTA at Rs.(73) crore in Q3 FY2009 as compared to Rs. 150 crore in Q3 FY2008
• Loss After Tax at Rs. (227) crore compared to Profit After Tax of Rs. 92  crore in Q3 FY2008.
• Basic EPS for Q3 FY 2009 stands at Rs (7.39).

The performance and developments during the review period are a reflection of the significant business opportunity the company believes it enjoys going forward. The financial performance for the quarter under review was impacted due to the provision of Rs. 207 crore made towards a SABIC order executed by Simon Carves Limited, which is under litigation with client, foreign exchange losses of Rs 78 crore on loans taken by Simon Carves Limited owing to volatility of sterling pounds.  

Simon Carves Limited (“SCL”) has commenced adjudication proceedings against SABIC Petrochemicals UK Limited (“SABIC”). These proceedings are aimed at seeking compensation of £28.5 million (pounds sterling), through the U.K. Courts. The compensation is in respect of an advance payment bond and a performance bond called by SABIC following in SCL’s view, the wrongful termination of the contract between SABIC and SCL by SABIC.  The SCL will continue to peruse recovery the Claims & Variations Orders for cost overruns and scope changes and damages for losses arising as a consequence of the termination of the contract, through the available contractual dispute redressal mechanism and other legal resources available as per UK laws.

Commenting on the results, Mr. Atul Punj, Chairman, Punj Lloyd Group, “Despite a difficult macro environment, I am happy to report encouraging growth in the volume of business and  operating levels. The results were adversely impacted owing to provisions made in one of the long term contract and volatilities in currencies. We have won prestigious contracts from Cairn Energy India Limited and Housing and Infrastructure Board (HIB) of Tripoli which demonstrates the reputation of the Group and its capabilities in executing unique and challenging projects both in India but also abroad. We also bagged orders from Municipal Corporation of Delhi and Airports Authority of India.”

He further added, “Our focus continues to be on expanding the order book with high profile credentials and ensuring that the order inflow is higher than the order burn out. Our global business presence and diversified business model gives us the confidence to maintain a robust outlook of our performance even when there is a slowdown in some geographies.”  

Order Book update

As on 31 December 2008, Punj Lloyd Group had an order book backlog of Rs. 21,908 crore.

Rs. 2,277 crore new orders were bagged during Q3 FY2009. Key orders are as follows:

• Punj Lloyd secured a contract from Municipal Corporation of Delhi for a value of Rs 304 crore for development of parking facility near Jawaharlal Nehru Stadium for the forthcoming Commonwealth Games- 2010.
• Punj Lloyd Indonesia bagged a Rs. 101 crore contract from PT Shell Indonesia for the engineering, procurement and construction of new fuel terminal at Pulau Laut, Kalimantan, Indonesia.
• Simon Carves Singapore has received a Letter of Intent of Rs. 152 crore from Exxon Mobil Asia Pacific Pte. Ltd for execution of an engineering, procurement and construction contract for Jurong Strategic Study project at Jurong Lubes Terminal, Singapore.

Further, in January 2009

• Punj Lloyd also won its first infrastructure and utility project in Libya which includes upgrading the Infrastructure of Arada, an existing township in Tripoli, Libya. This project has been awarded by Housing & Infrastructure Board (HIB) of Tripoli and is valued at Rs 630 crore
• Subsequently, Punj Lloyd won another order from Housing & Infrastructure Board (HIB) worth Rs 823 crore for execution of utilities in Souk Al Juma, Tripoli, Libya
• Punj Lloyd won a contract worth Rs 264 crore from Airports Authority of India (AAI) to build Sikkim’s first Greenfield airport project in Pakyong.
• Punj Lloyd bagged a Rs. 105 crores contract from Cairn Energy India Limited for laying a crude oil heated and insulated pipeline and a gas pipeline in section II for the Mangla Development Project in Gujarat.

About Punj Lloyd:
Punj Lloyd Group (BSE SCRIP ID:  PUNJLLOYD, NSE SYMBOL: PUNJLLOYD)
Punj Lloyd is a globally diversified conglomerate providing engineering, procurement and construction services in Oil & Gas, Petrochemical and Infrastructures sectors, with interests in aviation, defence and marine. Known for its capabilities in delivering mega projects ‘on-time,’ thereby ensuring repeat customers, the Group possesses a rich experience of successfully delivered projects across the globe, while maintaining the highest standards of  health, safety, environment and quality (HSEQ).  Further information about the Group is available at www.punjlloydgroup.com