During Tuesday’s trading session, the shares of a company engaged in the business of construction and civil infrastructural development moved down by around 1.3 percent, after the company disclosed a default of Rs. 2,628.15 crore on loans from banks and financial institutions.
Price Movement:
With a market capitalisation of Rs. 491.7 crores, at 11:20 a.m., the shares of IL&FS Engineering and Construction Company Limited were trading in the red at Rs. 37.5, down by nearly 1.3 percent, as compared to its previous closing price of Rs. 38.
The stock has delivered negative returns of nearly 17 percent YTD, but gained by around 10.3 percent in a month.
What’s the News:
According to the latest exchange filings, IL&FS Engineering and Construction Company Limited (IECCL) has reported a default totalling Rs. 2,628.15 crore on loans and revolving credit facilities, including cash credit lines from various banks or financial institutions.
In adherence to SEBI’s circular dated 21st November 2019, IECCL disclosed that the entire outstanding amount of Rs. 2,628.15 crore as of 31st March 2025 has been categorized as default.
The company’s total financial indebtedness—comprising both short-term and long-term borrowings—stands at Rs 3,097.71 crores.
The filing further indicates that there are no outstanding amounts related to unlisted debt securities such as Non-Convertible Debentures (NCDs) or Non-Convertible Redeemable Preference Shares (NCRPS), with “NIL” reported under those categories.
Additionally, the company noted that, in line with directions from the National Company Law Tribunal (NCLT), no further interest is being accrued or accounted for post the specified cutoff date, except for interest on Funded Interest Term Loans (FITL).
Financial Performance:
IECCL reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 48 percent, from Rs. 47 crores in Q3 FY24 to Rs. 68 crores in Q3 FY25.
In contrast, the company’s net profit decreased during the same period from Rs. 7.7 crores to Rs. 1.5 crores, representing a decline of nearly 80.5 percent YoY.
About the Company:
IL&FS Engineering and Construction Company Limited is primarily engaged in the business of erection/construction of roads, irrigation projects, buildings, oil & gas infrastructure, railway infrastructure, power plants, power transmission & distribution lines, including rural electrification and development of ports.
Written by Shivani Singh
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