Leading infrastructure firm IVRCL Ltd today reported a steep decline of over 92 per cent in its standalone net profit to Rs 4.94 crore for the quarter ended March 31,2012,largely due to increased expenses.
The company,in which media baron Subhash Chandra-led Essel Group had picked up 12.27 per cent in March-April,had posted a net profit of Rs 64.25 crore in the year-ago period.
The net sales of the company also fell by 22.22 per cent to Rs 1,596.03 crore vis-a-vis Rs 2,052.04 crore in the January-March period of previous fiscal,it said in a filing to the BSE.
The company reported a total expenditure of Rs 1,521.91 crore during the quarter.
For the full year 2011-12,the company reported a decline of 84.75 per cent in its standalone un-audited net profit to Rs 24.08 crore compared to Rs 157.89 crore in FY’11.
The net sales of the company also declined by over 12 per cent to Rs 4,970.89 crore in FY’12 from Rs 5,651.45 crore.
The company has a current order book of Rs 27,794 crore. The Hyderabad-based firm said it has secured shareholders and creditors approval for merging group firm IVRCL Assets and Holdings into itself and the matter is pending for approval before the Andhra Pradesh High Court.
Acquisition of 12.27 per cent stake by Essel Group in March-April had triggered the speculations of a possible takeover of the infrastructure firm by the Subhash Chandra-led group.
However,the Essel group later clarified that it has dropped its takeover plans for the moment and would watch company management’s moves critically before moving any further.
Meanwhile,IVRCL Assets and Holdings — the subsidiary firm of the company,reported a net loss of Rs 190.63 crore in the last fiscal and net sales stood at Rs 991.87 crore.
For the January-March quarter,it reported a net loss of Rs 20.40 crore and net sales of Rs 227.08 crore.
Hindustan Dorr-Oliver,another subsidiary of IVRCL that is into EPC business,reported a net profit of Rs 21.40 crore in FY’12 and net sales of Rs 795.94 crore.
During the fourth quarter of last fiscal,it reported a net profit was Rs 9.35 crore and net sales of Rs 312.92 crore.
Shares of the IVRCL slumped today by 11.83 per cent to close at Rs 45.10 on the BSE. IVRCL Assets and Holdings scrip closed 4.91 per cent down to Rs 37.80,while Hindustan Dorr-Oliver closed at Rs 33.30 apiece,up 4.23 per cent.