HCC cracks after poor Q4 financial performance

Hindustan Construction Company lost 4.31% to Rs 44.45 at 09:46 IST on BSE after net profit declined 4.13% to Rs 20.91 crore on 13.57% rise in net sales to Rs 1358.27 crore in Q4 March 2017 over Q4 March 2016.

The result was announced after market hours yesterday, 4 May 2017.

Meanwhile, the S&P BSE Sensex was down 117.99 points or 0.39% at 30,008.22. The S&P BSE Mid-Cap index was down 9.71 points or 0.07% at 14,871.15.

On the BSE, so far 7.25 lakh shares were traded in the counter, compared with average daily volumes of 11.50 lakh shares in the past one quarter. The stock had hit a high of Rs 45.50 and a low of Rs 44 so far during the day. The stock hit a 52-week high of Rs 48 on 25 April 2017. The stock hit a 52-week low of Rs 18 on 24 April 2017.

The mid-cap infrastructure company has equity capital of Rs 101.07 crore. Face value per share is Re 1.

Hindustan Construction Company's (HCC) earnings before interest, taxation, depreciation and amortization (EBITDA) rose 6.82% to Rs 224.10 crore in Q4 March 2017 over Q4 March 2016. EBITDA margin dropped 100 basis points to 16.5% in Q4 March 2017 from 17.5% in Q4 March 2016.

Ajit Gulabchand, Chairman & Managing Director said that with the improved investment climate and the government impetus on infrastructure, the company firmly believe that it has a huge opportunity to attain robust growth. The improved order book will certainly help raise turnover and arbitration award receivables will reduce interest cost in the coming quarters.

HCC said that pursuant to the recent Cabinet order on arbitration awards, HCC is in receipt of letters from government agencies for release of Rs 1882 crore. Of these, Rs 380 crore has already been received and the balance Rs 1502 crore is expected shortly, the company said.

HCC said that the company secured seven new orders worth Rs 5375 crore in the year ended 31 March 2017 (FY 2017) and is the lowest bidder in projects worth Rs 2804 crore. Excluding L1 bids, the order book has grown to Rs 20390 crore from Rs 18123 crore last year.

HCC builds and develops infrastructure. The company serves the infrastructure sectors of Transportation, Power and Water. It is also developing Lavasa City, a planned hill city and one of India's largest urban development and management initiatives.

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