HCC hits 52-week high after turnaround Q4 earnings

Hindustan Construction Company surged 8.14% to Rs 20.60 at 14:52 IST on BSE after the company reported a net profit of Rs 24.40 crore in Q4 March 2014 as against net loss of Rs 50.30 crore in Q4 March 2013.

The Q4 result was announced during trading hours today, 2 May 2014.

Meanwhile, the S&P BSE Sensex was up 8.42 points or 0.04% at 22,426.22.

The stock spurted on heavy volumes. On BSE, so far 40.86 lakh shares were traded in the counter as against average daily volume of 7.32 lakh shares in the past one quarter.

The stock hit a high of Rs 21 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 19.10 so far during the day. The stock had hit a 52-week low of Rs 7.75 on 2 August 2013.

The stock had outperformed the market over the past one month till 30 April 2014, surging 17.01% compared with the Sensex's 0.35% rise. The scrip had also outperformed the market in past one quarter, jumping 45.98% as against Sensex's 9.36% rise.

The small-cap company has equity capital of Rs 60.66 crore. Face value per share is Re 1.

Hindustan Construction Company (HCC)'s turnover rose 20% to Rs 1184 crore in Q4 March 2014 over Q4 March 2013. Operating profit surged 92% to Rs 170 crore in Q4 March 2014 over Q4 March 2013. EBITDA margin spurted to 14.8% in Q4 March 2014, from 9% in Q4 March 20123.

HCC reported a net profit of Rs 80.64 crore in the year ended 31 March 2014 (FY 2014) as against net loss of Rs 137.64 crore in the year ended 31 March 2013 (FY 2013).

HCC's turnover rose 7% to Rs 4113 crore in FY 2014 over FY 2013. Operating profit surged 67% to Rs 640 crore in FY 2014 over FY 2013.

EBITDA margin surged to 15.86% in FY 2014, from 9.99% in FY 2013. The company's current order book stood at Rs 14249 crore, excluding L1 contracts worth Rs 1291 crore.

During FY 2014, the company secured nine new orders worth Rs 3218 crore. After two years of losses, the company improved its performance quarter by quarter to post a net profit, HCC said. Efficient project management and tight cost control has helped to improve margins, HCC said in a statement.

Commenting on the company's financial performance, Ajit Gulabchand, CMD, HCC said, "In an uncertain economic scenario, our focus remained on improving the operational efficiency. The company will continue to implement measures aimed at further improvement in all financial parameters. Inflow of Rs 3218 crore orders during last six months will help to improve the turnover in the next few quarters".

HCC is India's leading infrastructure company.

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