Leading infrastructure firm HCC today reported a standalone net loss of Rs 30.99 crore for the quarter ended June 30, 2012, largely due to lower income from operations and increased interest outgo.
The company, whose Rs 3,200 crore debt restructuring was approved by the Corporate Debt Restructuring (CDR) Cell in June, had clocked net profit of Rs 2.87 crore during the April-June quarter of last fiscal.
Its income from operations during the quarter declined by 8.35% to Rs 969.36 crore largely due to slowdown in industrial activities vis-a-vis Rs 1,057.71 crore of the April-June quarter of 2011-12, the company said in a filing to the BSE.
"Our quarterly performance reflects the stress faced by the infrastructure sector. Delays in decision making and in environmental clearances have caused a sharp drop in the visible orderbook of the sector," HCC's Group Chief Finance Officer Praveen Sood said in a statement.
HCC is addressing these challenges through comprehensive cost and claims management, he said, adding that the recent government announcements have made company optimistic on getting faster clearances and rolling out of new projects.
It also saw an increase of 11.80% in its interest payments to Rs 128.20 crore during the quarter, while its total expenditure was at Rs 940.90 crore.
HCC said the restructuring of its Rs 3,200 crore debt will "improve cash flow and provide room for operating during this challenging period".
As on June 30, the company had an orderbook of Rs 15,020 crore and L-1 (lowest bidder) contracts worth Rs 3,439 crore, it added.
About Lavasa Corporation -- the company's subsidiary which is constructing a hill city near Pune, HCC said that it has resumed development and construction activities there. Besides, the recently launched apartments for its new town, Mugaon, are received strong response.
Lavasa's lenders have also agreed to realign its debt and the process is underway, HCC said.
During the April-June period, HCC's Switzerland-based subsidiary Steiner AG registered revenues of CHF (swiss frank) 203 million (Rs 1,177.6 crore) and bagged orders worth CHF 103 million.
The Steiner AG, as on June 30, had an orderbook of CHF 1,503 million (Rs 8,716.70 crore) and contracts, for which final agreements have not been signed yet, worth CHF 140 million (Rs 813.60 crore), HCC said.
Following the results, shares of the company fell today by 1.18% to close at Rs 16.70 apiece on the BSE.