HCC Q1 net profit up 17% to Rs 11 crore

Infrastructure major HCC on Thursday reported 17.49% rise in standalone net profit at Rs 10.88 crore for the quarter ended June 30 on the back of higher income.

The company's standalone net profit in the year-ago period was Rs 9.26 crore, Hindustan Construction Company said in a filing to BSE.

The total income from operations increased to Rs 982.45 crore from Rs 975.07 crore in the year-ago period.

The company did not provide consolidated results for the April-June quarter of the current financial year 2016-17.

"HCC's order backlog, with an improved market share, is over Rs 21,500 crore in view of the government's renewed thrust on infrastructure...Operating profit at Rs 172.5 crore compared to Rs 178.4 crore," it said in a press release.

HCC Group CFO Praveen Sood: "HCC's order backlog has grown more than 35% in last 15 months. We are witnessing green shoots of infrastructure growth and are confident that HCC will be able to leverage its capabilities in the fast improving infrastructure space."

HCC, in last two years, made concerted efforts for recovery of its dues amounting to Rs 11,000 crore from government agencies through arbitration proceedings, the statement said.

Till June 30, HCC has Rs 3,179 crore worth arbitration awards in its favour but only Rs 373 crore could be collected as the clients have challenged the verdict in courts, it said.

'Cashflow Timing Mismatch' in last couple of years between claims realisation (including its interest) and debt servicing is the major issue faced by the 90-year-old company, it said.

The payment of its legitimate arbitration awarded claims of over Rs 3,000 crore by the government agencies can dramatically alter the scenario. It can reduce to less than 50% the outstanding funded debt of Rs 5,000 crore and bring down yearly payout to company's current paying capacity, it added.

"The Joint Lender's Forum meeting of HCC....Has passed to resolve the account under the recent RBI guidelines 'Scheme for Sustainable Structuring of Stressed Assets (S4A)'," it added.

The HCC Group, with turnover of Rs 8,768 crore, comprises of HCC Ltd, HCC Infrastructure Co. Ltd, Lavasa Corporation Ltd and Steiner AG in Switzerland.