HCC's net profit falls 43% in July-September quarter

Infrastructure company Hindustan Construction Co Ltd (HCC) reported a 43% decline in its net profit for the July-September 2016 impacted by lower exceptional gains.The company reported a net profit of Rs 23.08 crore, 43% lower from Rs.40.35 crore reported in the same period a year back.

Total income from operations was 5% lower at Rs 961.79 crore from Rs 911.3 crore from a year ago. HCC did not report any exceptional gain for the July-September2016 ended quarter compared to an exceptional gain of Rs 45.23 crore seen in the corresponding quarter last year.

Total expenses for the company also fell 8% to Rs 749.36 crore and finance costs rose 7% to Rs 189.99 crore. In a Bloomberg poll, three analysts expected the company to report a net profit of Rs 18.63 crore and four analysts estimated the company's total revenue at Rs.1033 crore.

The company performed better than expected in terms of net profit estimated by analysts. In the September 2016 ended quarter, the company said, it has received three orders worth Rs 4455 crore and its order backlog has jumped 30%in the first six months of the current financial years.

As on 30th September, the company said, its order backlog was at Rs 21,309 crore. HCC also added it has arbitration awards worth Rs 3427 crore as of 30th September and additional claims worth Rs 4173 crore in the arbitration process.The company is positive to enhance its turnover with the improved business sentiment and order booking.

On the proposed S4A restructuring for its debt, the company said the proposal has been submitted to the overseeing committee and is currently pending for approval.