Punj Lloyd shares tumble over 3% post Q2 results

Shares of Punj Lloyd slipped over 3 per cent in early trade on Thursday after the diversified engineering, procurement and construction (EPC) conglomerate registered a standalone flat net loss of Rs 225.80 crore for the quarter ended September 30, 2016.

The company had reported a net loss of Rs 226 crore for the same quarter last year. Total income from operations during the quarter declined to Rs 995.69 crore from Rs 1,008.8 crore in the year-ago quarter.

Atul Punj, Chairman, Punj Lloyd, in a release said, “The quarter under review saw some acceleration in execution across all our projects. We are encouraged by a gradually improving macro environment and an enabling policy framework, both of which should translate to improved performance for the sector."

Shares of Punj Lloyd were trading 3.16 per cent down at Rs 19.90 in morning trade around 9.55 am. The scrip opened the day at Rs 20.50 and had touched a high and low of Rs 20.50 and Rs 19.80, respectively. The benchmark Sensex was trading 21.89 points, or 0.08 per cent, higher at 26,674.

“A key development during the quarter was the Cabinet decision on payment of arbitration awards by government agencies to EPC companies. This, the company, believe is a significant positive for the industry and will go a long way towards reducing debt and infusing money into the business, enabling timely project execution,” Punj added.

The company announced its financial results on Wednesday post market hours.