For the 18-month period ended September 30, the company posted profits of Rs 44.51 crore, against a modest profit Rs 2.91 crore in 2010-11.

IL&FS Engineering Services Ltd is on course for a better year ahead after nearly three years of consolidation and restructure of business process and finances.

Things are starting to look up for IL&FS now that it is armed with a master restructure agreement for a comprehensive corporate debt restructure, the approval of the Andhra Pradesh High Court and an order book of over Rs 8,400 crore.

The management of the Hyderabad-based infrastructure company under IL&FS seems to have buried the ghost of the 2009 Satyam Computer Services scam while it was still Maytas Infra Ltd. For the 18 month period ended September 30, 2012, the company posted revenues of Rs 2,145 crore and a profit after adjustment of Rs 44.51 crore. This was against a turnover of Rs 1,067 crore for 2010-11 and a modest profit of Rs 2.91 crore.

The company has begun to win orders in West Asia and Africa through its joint venture with the Saudi Bin Laden Group based in Fujairah and Abu Dhabi. IL&FS, which is set to host its annual general meeting next month, has communicated to shareholders that it has a good case with regard to the inter-corporate deposits it extended through Maytas in the past including Rs 369 crore to the erstwhile Satyam Computer Services Limited.

However, auditors continue to qualify this.

The company’s share capital has come down to Rs 339 crore down from Rs 384 crore following conversion of debentures allotted to some lenders as a part of a corporate debt restructure in which 10 banks participated.

Following the financial and capital restructure, the debt is now at Rs 1,364 crore. The scheme of arrangement has been approved by the Court and includes a modified scheme lodged with the Registrar of Companies.

The company has also taken up the issue of deposits it made with the Andhra Pradesh Government towards the metro rail project re-tendered and awarded to L&T.

According to the company management, while overall growth has slowed, the opportunities in infrastructure sector such as roads, power, pipelines and construction hold immense promise going forward.

rishikumar.vundi@thehindu.co.in

(This article was published on January 26, 2013)
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