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No profit expected in 3 years: Prajay Engineers Syndicate

The company has been in trouble following the slump in the Hyderabad real estate.

Hyderabad: City based real estate firm Prajay Engineers Syndicate on Wednesday indicated that it would take at least three years to tide over liquidity problems caused by cessation of its two key projects.

“Our most prestigious commercial property in LB Nagar has been seized by the banks in concurrence with a court order due to the non-repayment of Rs 220-crore loan. Our another major project at Hafeezpet has been stuck following the government’s decision to put hold all transactions related to land bought from Goldstone founder Dr Prasad,” said chairman and managing director Vijay Sen Reddy. He, however, added that the land bought from Mr Prasad is not government land.

“It will take at least 3-4 years for the company to come out of these issues and move ahead,” he said, adding that as a result the company may not post profit during this period.

The company has been in trouble following the slump in the Hyderabad real estate.

He also blamed an imminent split in the promoter family for the slower recovery.

“The family of my deceased brother and former chairman of the company holds 14 per cent in the company. They are planning to exit the company. This is creating some confusion amongst the shareholders as they are challenging every decision made by the current management,” Mr Reddy said.

Mr Reddy, whose family holds 32 per cent stake, said that his brother’s family may sold their stake in open market.

( Source : Deccan Chronicle. )
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