The ₹1,600-crore Paharpur Cooling Towers Ltd (PCTL), the country’s largest maker of cooling towers, is hopeful of a revival in its core business this year.

Cooling towers are used in the electricity generation sector.

According to Gaurav Swarup, Managing Director, new initiatives taken up by the Government would help the company tide over the difficult market conditions. Weakened liquidity hit the power sector, thereby, adversely impacting the company.

Fund raising According to a report by ratings agency Crisil, PCTL saw a decline in profit after tax for FY-14 to ₹100 crore from ₹180 crore in the year earlier.

Operating income stood at ₹1,300 crore, down from ₹1,560 crore in FY-13.

As a result, the company’s operating performance has been weak.

Operating margin, according to Crisil, is estimated to be “under 10 per cent” for 2014-15 against 13.5 per cent in the year earlier.

Crisil has also mentioned in its report that PCTL was looking to raise around ₹75 crore as commercial papers, and ₹800 crore as bank loans.

“These are regular processes. There aren’t any fund raising plans at the moment,” Swarup said.

Real estate business PCTL, through its subsidiary Platinum Realty Investment, has set up commercial and residential projects in the Sri Lankan capital Colombo.

According to Swarup, deliveries of the project have begun and they are likely to be completed over the “next one year”.

As for its West Bengal real estate projects, Paharpur has brought out the stake of Pragnya Realty, its 49 per cent joint venture partner, in a special purpose vehicle, SPV Paharpur Pragnya Realty. Pragnya was finding it difficult to work in the State, he said.

“Pragnya has exited the SPV last year and we have brought out their stake,” he added without disclosing the amount.

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