IVRCL Limited has posted a huge loss of Rs 328.11 crore for the fourth quarter ended March 31, 2014 as against a loss of Rs 6 crore for the corresponding period last year.

The Hyderabad-based construction and infrastructure company however registered higher income of Rs 1,217.12 crore for the fourth quarter as against Rs 1,194.26 crore for the corresponding quarter last year.

For the financial year ended March 31, 2014 the company posted a loss of Rs 882.27 crore and income of Rs 4,944.70 crore as against a loss of Rs 279.29 crore and income of Rs 4,495.25 crore for the previous financial year.

Faced with tough business environment including high interest rate regime, which has impacted the overall pace of project execution and profitability of the company, IVRCL has knocked at the Corporate Debt Restructure Cell on January 20.

The company has stated that it has invested Rs 66 crore in its subsidiary Hindustan-Dorr Oliver Limited, whose net worth has substantially eroded. However, it expects to implement business plan and improve its future operations.

IVRCL had entered into agreements on March 30, 2013 with a strategic partner ( TRIL, a Tata group entity) for divestment of 74 per cent stake in BOT projects relating to Salem Tollways Limited, Kumarapalayam Tollways Limited and IVRCL Chengapalli Tollways Limited as a composite agreement, subject to approvals for all the projects from NHAI and the lenders. Pending approvals from the lenders, the investments in these projects are considered as long term investments.

Based on expected cash flow, no provision is considered necessary to carrying value for investments.

The company shares closed the day at Rs 25.12, down 1 per cent at BSE.

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