IVRCL has posted a huge loss of Rs 157.91 crore in the first quarter ended June 30, 2014 against a loss of Rs 88.47 crore in the corresponding quarter last year.
Income from operations was also dragged down to Rs 833.50 crore during the first quarter against Rs 1006.82 crore in the same period last year.
Performance of the Hyderabad-based infrastructure and construction company during the quarter was impacted due to high interest rates clipping into overall margins and slower project implementation and delays in receivables.
The company has trade receivables of Rs 937.55 crore which have been locked in arbitration with its clients.
CDR implementation
During the first quarter, the Corporate Debt Restructuring Empowered Group (CDR EG) had on June 28, 2014 approved the CDR proposal submitted by the company and the management is implementing the scheme.
IVRCL had invested Rs 65.75 crore in its subsidiary Hindustan Dorr Oliver Limited, whose net worth has eroded.
As the subsidiary is confident of implementing the business plans and improving its operations in future, provision for diminution in value has not been considered necessary, according to a statement filed with the exchanges by K.Ashok Reddy, Joint Managing Director.
BoT road projects
The company had entered into a sale agreement for 74 per cent stake in three BoT road projects relating to Salem Tollways Ltd, Kumaraplayam Tollways Ltd and IVRCL Chengappalli Tollways Ltd, as a composite agreement last year. This is subject to approvals by NHAI and the lenders.
The company shares were trading at Rs 18.80, down 5 per cent.