IVRCL Ltd has brought down its loss to ₹131.37 crore for the financial year ended March 31, 2017 as against a loss of ₹1,067.03 crore for the previous financial year, on a consolidated basis.
The Hyderabad-based cash-strapped, debt-laden infrastructure company registered lower income of ₹2,054.19 crore for the fiscal against ₹2,385.23 crore for the previous financial year.
For the fourth quarter ended March 31, 2017, the company posted a loss before tax of ₹331.34 crore as against a loss of ₹302.64 crore for the corresponding quarter last year on a standalone basis.
The income for the quarter was up at ₹686.35 crore (₹655.19 crore). During the year, while the company posted a loss of ₹131.37 crore, it has accumulated loss of ₹2,172.99 crore leading to substantial erosion of networth. IVRCL expects to meet obligations with the help of a new strategic investor.
‘Tough times’ E Sudhir Reddy, Chairman and Managing Director of IVRCL, told BusinessLine , “We are passing through tough times and the focus is on completing ongoing projects. Of the couple of road projects, Indore-Jhabua and Chandrapur projects, the former is likely to be completed within a couple of months and the latter has been completed.”
“While the EPC business continues to be good, the BOT projects have drained us out. As per the RBI guidelines and norms, along with various stakeholders, we will take an appropriate decision on the way forward for the company,” he said.
Exploring options Asked if stake sale was a way out, he said, “Yes, it is one of the options and we are exploring various options. But conditions are tough,” he said. Auditors Chaturvedi & Partners in the audit qualifications has said that the current liabilities exceed current assets.
The company has obligations towards borrowings aggregating to ₹5,347 crore, including ₹1,768 crore falling due over the next 12 months.
IVRCL scrip closed at ₹4.84, up 16.9 per cent, on the BSE on Wednesday.