HCC Q2 net loss at Rs 41 cr

Hindustan Construction Company (HCC) today reported a net loss of Rs 40.5 crore for the quarter ended September 30, on account of high interest costs and delays in the award of new projects.

The company had reported a net profit of Rs 12.13 crore in the same quarter last fiscal.

"The financial performance reflects the difficult economic and business environment, coupled with high inflation, high interest rates and significant delays in awarding of new infrastructure projects," HCC Chairman and Managing Director Ajit Gulabchand said in a statement.

Turnover of the company also dipped to Rs 838 crore in the second quarter of the current fiscal against Rs 899 crore during the July-September quarter of the last fiscal.

"With interest rates cycle peaking and the government focused on reviving economic growth, a pick-up in new project awards and a subsequent reduction in financing costs is expected," he said.

The order book of the company currently stands at Rs 16,175 crore, excluding two contracts worth Rs 2,077 crore, where HCC is the lowest bidder.

HCC's shares were trading at Rs 26.5 a piece, down 2.5% at around 2pm today at the BSE.