Hindustan Construction Company (HCC) announced a drop in standalone net profit for the quarter ended June 2015. During the quarter, the profit of the company declined 70.41% to Rs 80.20 million from Rs 271 million in the same quarter last year.
Revenues for the quarter declined 6.56% to Rs 9,750.70 million, compared with Rs 10,434.80 million for the prior year period.
Operating margin for the quarter stood at 13.37 percent as compared to 15.74 percent for the previous year period. Operating Income for the quarter was Rs 1,303.20 million, compared with Rs 1642.1 million in the previous year period.
Earnings per share for the quarter stood at Rs 0.10, registering 76.74% decline over previous year period.
Commenting on the company's performance, Praveen Sood, Group CFO said, ''The infrastructure sector continues to face significant challenges despite considerable optimism from the new Government about de-bottlenecking the sector. Amidst such challenging environment, our strategy remains focused on improving the operational efficiency and recovery of our claims. In view of the Government’s thrust on improving overall infrastructure sooner or later, we will be better positioned to create value for our shareholders.''
Till date, HCC has Rs 23.72 billion worth arbitration awards in its favour, however, due to system delays these are yet to be paid. The company is hopeful that the new government’s steps for promotion of ease of doing business in general and giving a fillip to the infrastructure sector in particular will resolve the situation at the earliest.
HCC has successfully completed equity raising via QIP issue of Rs 4 billion on Apr. 08, 2015. The net worth of the Company post QIP is around Rs 17.86 billion having debt equity ratio 2.7:1. The company has also concluded the sale of its entire 26% stake in 247 Corporate Park located at Vikhroli West, in Mumbai to Blackstone at an enterprise value of Rs 1047 crore, which includes assumed debt, resulting in a net cash inflow of over Rs 2 billion to HCC Group.
Till date, HCC has Rs 23.72 billion worth arbitration awards in its favour, however, due to system delays these are yet to be paid. The company is hopeful that the new government's steps for promotion of ease of doing business in general and giving a fillip to the infrastructure sector in particular will resolve the situation at the earliest.
Current order book at Rs 139.20 billion excluding L1 contracts worth Rs 29.90 billion.
Quarterly Results - Standalone (Rs in mn) |
As at | Jun - 15 | Jun - 14 | %Change |
Revenues | 9,750.70 | 10,434.80 | (6.56) |
Net Profit | 80.20 | 271.00 | (70.41) |
Diluted EPS | 0.10 | 0.43 | (76.74) |
Shares of the company declined Rs 0.05, or 0.23%, to settle at Rs 22.10. The total volume of shares traded was 1,361,582 at the BSE (Thursday).