ILFS jumps 6% after Arbitral Tribunal directs NHAI to pay Rs 547 cr to arm
IL&FS gained over 6 percent intraday on Thursday as investors bet on an award going in the company’s favour.
The company’s subsidiary, Pune Sholapur Road Development Company (PSRDC) had invoked arbitration against National Highways Authority of India with respect to development, maintenance, and management of a highway in Maharashtra.
The highway was on the Pune-Solapur section of NH-9 and had been done on DBFOT basis. The arm had claimed compensation for losses suffered by it on account of time overrun in construction phase of the project.
The Arbitral Tribunal asked NHAI to pay Rs 547.96 crore to PSRDC.
The stock had hit upper circuit on Wednesday on the back of robust September quarter earnings as well.
The net profit of the company surged to Rs 40.14 crore in the September quarter against a net loss of Rs 81.59 crore in the same quarter of last year.
The company’s income from operations however declined to Rs 340.84 crore in the quarter ending September, from Rs 356.87 crore in the September quarter 2016, the company said in a regulatory filing.