Maytas Infra Limited (Maytas), an arm of Satyam Computers, has posted huge loss of Rs. 489.79 crores for the year ended March 2009.
The impact of the unprecedented developments in Satyam on Maytas Infra was evident as the company reported a net loss of Rs. 489.79 crore as against a net profit of Rs. 99.64 crore in the previous year. The turnover itself fell by 19 per cent from Rs. 1,637 crore last year to Rs. 1335 crore for the year ended March 31, 2009. As on July 31 this year, the order book of the company stood at Rs. 7,332 crore, although several projects entrusted to were cancelled.
Most notable among them, though not in the fiscal under review, was the cancellation of the prestigious multi-crore Hyderabad Metro Rail Project. Ved Jain, Director, nominated by the Central Government, admitted that the unprecedented events that occurred in the company had seriously affected its business operations.
The substantial operational loss is primarily due to low level of operations, project cancellations and project cost escalations, he noted. A company release on Saturday said the losses for the year were broadly on account of un-absorbed fixed expenses like personnel cost, interest, depreciation and administrative costs -- all due to lower level of operations than what was planned for the year.
In the first quarter of 2009-10 ending June 30, the company reported a net loss of Rs. 16.28 crore on a turnover of Rs. 308 crore against a net profit of Rs. 20.05 crore for the corresponding period of the previous year. “There is an overall improvement in the operations of the Company. The company reported a cash profit of of Rs. 2.50 crore for this quarter”, the release said.
