Punj Lloyd, a company that has executed in excess of 200 mega projects in over 120 countries, appears to be going steady in the profit department. The engineering and industrial group has its business spread across the Middle East, the Caspian, the Asia-Pacific, the Europe, Africa and South Asia and caters to the in the oil and gas, energy and infrastructure sectors.
Punj, as chairman of Punj Lloyd, has played a crucial role in providing the Indian conglomerate with enterprising vision, resilience and grit that has propelled the giant company to great heights.
On Thursday, Punj Lloyd’s scrip surged as its arm, Pt Engineering Limited, sold its entire stake in the UK-based Simon Carves Engineering to Engineers and Constructors International Inc for $2 million (over Rs 13 crore), a move considered quite wise and natural for the group.
After opening the day on a strong and confident note, the scrip took a further leap from 7.61% to an impressive Rs 21.20 on the Bombay Stock Exchange (BSE). At the National Stock Exchange, the shares of the company soared 6.83% to Rs 21.10. This would give Punj Lloyd a great deal of satisfaction and calm.
In a statement to the media on Wednesday, Punj Lloyd said in a filing to the BSE: “Pt Engineering Limited, subsidiary of the company, has sold its entire shareholding in its wholly-owned subsidiary registered in the United Kingdom viz Simon Carves Engineering Limited to Engineers and Constructors International, Inc.”
The buyer, Engineers and Constructors International Inc, is a design and engineering company belonging to the Mitsui Group. It is based out of Baton Rouge, Louisiana, US, the filing said.
Punj Lloyd is not a Reliance or an Adani, but it is one of India’s most respected business entities. The group has been at the forefront of tapping international opportunities, helping it weather even the most sluggish phases in the Indian infrastructure space.
Despite the burden of debt, Punj Lloyd’s reputation for completing projects with complete quality control within a time frame has remained integral to its core philosophy of delivery, according to industry watchers and analysts.
Don’t forget, Punj Lloyd was among the first infrastructure companies in India to pick up projects abroad. Also, if you really looked at the company’s prevalent health, in terms of debt at competitive firms, it’s not alarming yet. And if Chairman Atul Punj keeps himself on the ball, it is predicted that the company will reduce debt and get back to a healthy balance sheet, like in 2011.