Maytas posts Rs 489 cr loss in FY`09; blames it on Satyam
Hyderabad: Ramalinga Raju family promoted Maytas Infra Ltd on Saturday reported a net loss of Rs 489.79 crores for FY`09 and attributed the poor showing to what it called "unprecedented events" linked to Satyam Computer.
The company, which had a net profit of Rs 99.64 crore last fiscal, released the results days after Corporate Affairs Minister Salman Khurshid said that the government was awaiting reports from the Enforcement Directorate and the US` Internal Revenue Service to see if the accounts needed restating.
Maytas, which lost the Hyderabad Metro rail project after an accounting scam came to light in Raju-founded Satyam in January, said in a statement that its top line fell 19 percent to Rs 1,335 crore during the year.
It said there was an increase in personnel cost by Rs 55 crore, which is 8 percent of the revenue as against 4 percent the previous year. Interest cost and depreciation cost increased by Rs 141 crore and Rs 35 crore, respectively, over the previous year.
For the April-June quarter, the company said it had incurred a net loss of Rs 16.28 crore as against a net profit of Rs 20.05 crore in the year-ago period.
"The unprecedented events that occurred in the company have seriously affected its business operations during the financial year ended 31st March, 2009 to a larger extent," Ved Jain, the government-nominated director of Maytas, said.
"The Board is happy to note that the company is slowly but surely emerging out of the turbulent times and inching towards its goal of being a player to reckon with in the infra domain," Jain said.
The government had nominated its member on the board of Maytas, but refrained from superseding the board as it did in the case of Satyam - which has since been sold to Tech Mahindra.
Jain attributed the losses to project losses (Hyderabad Metro) and high input costs.
"The substantial operational loss is primarily due to project cancellations and project cost escalations," he said. The board is working closely with the management team to strengthen the processes in the company for improving its financial health and cash flow," Jain said.
The release said the company has an order book of Rs 7,332 crore as on July 31, 2009.
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