Punj Lloyd sheds tears: hits 52-week low on imposition of fine

Punj Lloyd and its subsidiary, Punj Lloyd Upstream Limited (PLUL) have been ordered to pay a fine by the High Court of Justice, Queen’s Bench Division, Commercial Court, UK. Due to the fine imposed on the company, its share price has declined by 5.93 per cent on bourses in early trades; and is trading at Rs 19.5 on an intraday basis. The company’s share price has touched its 52-week low at Rs 19.05 on an intraday basis.

The order is related to a fine of about USD 26 million (Rs 176 crore) which has to be paid to International Finance Corporation, towards their claims. The UK Court has also ordered to pay British pound 75,000 (Rs 73 lakh) as assessment costs. Meanwhile, Punj Lloyd is considering various legal options and shall take appropriate steps in respect of such an order.

On financial front, Punj Llyod’s revenue has decreased by 43.91 per cent to Rs 724 crore in Q4FY16 as compared to same period in previous financial year. The company has posted negative EBITDA of Rs 214 crore as fourth consecutive loss in FY16. It has reported net loss of Rs 468 crore in Q4FY16 against net loss of Rs 598 crore in Q4FY15. Punj Lloyd’s total debt has increased by 29.12 per cent to Rs 6722 crore in FY16.

Punj Lloyd offers engineering, procurement and construction (EPC) and project management services in the energy and infrastructure sectors. It is also engaged in designing, engineering, fabrication and erection of storage tank/terminals for oil, water, chemicals and cryogenic applications, and tank refurbishment. It operates through two segments viz. engineering, procurement & construction services; and trading of goods.