The Hindu Business Line : IVRCL to rejig operations

Hyderabad, Nov. 1 IVRCL Infrastructures & Projects Ltd has recorded lower net profit of Rs 48.77 crore on revenues of Rs 1,245.10 crore for the second quarter ended September 30, 2009 as against net profit of Rs 57.10 crore and revenues of Rs 1,157.15 crore for the corresponding quarter last year.

The IVRCL group recorded a total turnover of Rs 1,456 crore in the second quarter (Rs 1,314 crore).

The income of IVRCL subsidiary Hindustan Dorr-Oliver increased from Rs 117.77 crore to Rs 206.27 crore and the profit was up at Rs 15.64 crore (Rs 7.98 crore). IVRCL Prime posted a loss of Rs 6.98 crore as against a profit of Rs 6.91 crore.

The company has embarked on a restructuring process whereby the BOT (build, own and transfer) assets of IVRCL will be transferred to IVRCL Prime. This process is aimed at creating value for the latter. IVRCL will focus on the EPC business, according to Mr E. Sudhir Reddy, Managing Director of IVRCL.

Addressing a press conference here , Mr Reddy said the restructure process will be taken up immediately. Services of consultants Enam have been enlisted. The entire process of valuation and transfer is likely to be completed by the end of this fiscal.

IVRCL has indicated it commands an order book of Rs 19,000 crore inclusive of tenders worth Rs 4,000 crore where it is the lowest bidder.

“As the infrastructure sector is expected to present large investment opportunities, we feel it is necessary to present a consolidated company for better utilisation of resources and capital,” Mr Reddy said.

The company may also consider raising funds through IVRCL Prime in the first quarter of next fiscal to take up its next phase of growth. The real estate company has a land bank of nearly 3,000 acres. However, its involvement with real estate now is low-key.