IL&FS Construction reports Rs 34.4 crore profit for December 2018 quarter

Our Bureau Mumbai | Updated on November 19, 2019 Published on November 19, 2019

After a wait of more than a year, IL&FS Construction and Engineering has disclosed its December 2018-ended quarter results.

The company has reported profits of Rs 34.4 crore, a huge rise when compared to Rs 32 lakh in profits it posted in the December 2017-ended quarter.

Revenues came in at Rs 300 crore, a 34.7 per cent dip when compared to revenues of Rs 459.5 crore it posted in the December 2017-ended quarter.

The above numbers are standalone results as IL&FS has committed a massive fraud and is under investigation by the government. These numbers have been reviewed by the audit committee and approved by the Board of Directors, head by banker Uday Kotak.

As on December 2018, IL&FS has provisioned exceptional items amounting to Rs 1,640 crore.

The numbers also revealed that based on the valuation reports by external valuers, IL&FS has recognised an impairment (accounting terminology for permanent reduction in a company's asset) of Rs 259.67 crore towards diminished value of a pass through certificate (PTC). This PTC was issued a decade or so back when IL&FS as a part of the debt restructuring programme had to dispose certain underlying investments held along with liabilities of Maytas. Maytas was the entity that was in the centre of the Satyam scam in 2008. IL&FS also has to receive an additional Rs 146 crore from other entities.

Prior to April 1, 2009, the erstwhile promoters of IL&FS, had given Inter Corporate Deposits (ICDs) to various companies aggregating to Rs 343 crore. Since then Satyam has been taken over by Tech Mahindra. IL&FS said that it is confident of recovering the ICDs with compensation.

Further, based on internal evaluation and based on observations of the special court in its verdict dated April 2015, evidences have emerged that Rs 1,425 crore was transferred to Satyam. Of this, Rs 1,230 crore continues to be with Satyam and IL&FS believes that this amount can be recovered.

Published on November 19, 2019
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