R Sarabeswar, chairman and chief executive officer of CCCL, did not offer a comment when contacted.
Several infrastructure projects, including Chennai Metro, have been delayed due to various reasons affecting the company's balance sheet, according to industry sources. The company owes around Rs 740-crore to banks and a major share of it is short-term loans, till the end of last fiscal year.
In October, 2013, Icra had revised the company's rating on various long-term and short term fund-based facilities and NCDs to Icra D. "The revision in the ratings factors the delays observed in debt servicing by CCCL against the continuing net losses, and elevated working capital intensity over the last 18 months," an ICRA report said.
CCCL’s consolidated operating income declined 10 per cent in 2012-13 as against 2011-12. Its operating and net margins also declined by around 400 basis points in 2012-13 vis-à-vis the previous year and stood at 0.85 per cent and (-4.32) per cent respectively, it said. The net losses continued in the year-to-date of 2013-14 also, said the report on October, 2013.
"These losses combined with the increased working capital intensity have led to higher than anticipated debt levels and inadequate debt servicing capability for the company. The management’s efforts to reduce the debt position of the company through liquidation of its land banks have not materialised till date. Accordingly, the utilisation of the fund based bank credit facilities remained high, providing limited liquidity buffer for the company," it said.
The company has made a net loss of Rs 101.77 crore during the quarter ended September 30, 2013, as against the net loss of Rs 14.92 crore for the same period during previous fiscal year. The total income dropped to Rs 248.52 crore, as compared to Rs 488.13 crore during the quarter ended September, previous year, according to BSE.
The company has been providing services including Construction, Engineering, Procurement, and Project Management to various sectors.