HCC jumps after winning project in Karnataka

Hindustan Construction Company jumped 5.98% to Rs 14 at 10:38 IST on BSE after the company said it bagged a Rs 903.83 crore order in joint venture with GVPR Engineers from Karnataka Neeravari Nigam.

The announcement was made after market hours on Monday, 3 March 2014.

Meanwhile, the BSE Sensex was up 87.40 points, or 0.42%, to 21,034.05.

On BSE, so far 3.70 lakh shares were traded in the counter, compared with an average volume of 5.31 lakh shares in the past one quarter.

The stock hit a high of Rs 14.10 and a low of Rs 13.68 so far during the day. The stock hit a 52-week high of Rs 16.40 on 15 March 2013. The stock hit a 52-week low of Rs 7.75 on 2 August 2013.

The stock had underperformed the market over the past one month till 3 March 2014, rising 3.36% compared with the Sensex's 3.65% rise. The scrip had, however, outperformed the market in past one quarter, rising 3.93% as against Sensex's 0.44% rise.

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

Hindustan Construction Company (HCC), in a joint venture with GVPR Engineers, has been awarded a contract worth Rs 903.83 crore from Karnataka Neeravari Nigam. The contract is for diversion of flood water from Sakleshpura (West) to Kolar/Chikkaballapur (East) under Yettinahole Diversion Project-Package-4. HCC's share in the joint venture is 50%. The project will be completed in 36 months.

Karnataka Neeravari Nigam, which has awarded the contract, is Karnataka Governments nodal agency to implement major irrigation projects. Yettinahole is a tributary of Netravati River and the Karnataka Government enterprise is diverting flood water from Sakaleshpur (West) to drought prone areas of Chikkaballapur and Kolar districts.

The scope of work includes Survey, Investigation, Design and Construction of Weir-2, Weir-6, Weir-7, Weir-8, Jack Well cum Pump Houses, Water pipelines at four different locations connecting to common Delivery Chamber-1 (DC-1) and also Delivery Chamber-5 (DC-5) from Weir-2,110 KV electrical substations with mechanical works consisting of vertical turbine pumps designed for a maximum pump head up to 90 meters.

The scope of work also includes operation and maintenance for a period of 5 years after successful commissioning of the scheme and obtaining environmental clearance and other statutory clearances from competent authorities on turn key basis.

Commenting on the prestigious order won, Arun Karambelkar, President and Whole Time Director HCC said, "We are delighted to be associated with this prestigious project that will bring water to parched areas of Chikkaballapur and Kolar districts. HCC as the country's leading company engaged in building infrastructure for India will continue to focus on large magnitude projects in critical sectors like water".

HCC reported a net profit of Rs 5.39 crore in Q3 December 2013 compared with a net loss of Rs 38.51 crore in Q3 December 2012. Total income fell 15.5% to Rs 880.05 crore in Q3 December 2013 over Q3 December 2012.

HCC is India's leading infrastructure company. HCC has executed a majority of India's landmark infrastructure projects, including the Bandra Worli Sea Link, Mumbai - India's first and longest open sea cable-stayed bridge; the Kolkata Metro, Farakka Barrage and India's largest nuclear power plant at Kudankulam - Tamil Nadu, to name a few. Today, HCC serves the infrastructure sectors of Transportation, Power and Water. HCC is also developing Lavasa City, a planned hill city and one of India's largest urban development and management initiatives. The HCC Group, with a group turnover of Rs 8,510 crore, comprises of HCC, HCC Infrastructure Co., HCC Real Estate, Lavasa Corporation and Steiner AG in Switzerland.

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