HCC standalone Net drops 3.9% to Rs 20cr in Jan-Mar; stock tank more than 24%

Hindustan Construction Company (HCC) today reported a 3.9 per cent decline in standalone profit to Rs 20.09 crore for the quarter ended on March 31, 2018.

The company had posted a standalone profit of Rs 20.91 crore in the year-ago period, HCC said in a filing to BSE.

However, standalone income of the company increased to Rs 1,511.47 crore in the quarter under review from Rs 1,428.86 crore in the January-March quarter of FY2016-17, it said.

The company posted a consolidated loss of Rs 1,090 crore for the fiscal ended on March 31, 2018 against a consolidated loss of Rs 982.60 crore in the year march march 31, 2017.

Consolidated income rose to Rs 10,188.54 crore in 2017-18 from Rs 9,947 crore in the previous fiscal.

"While turnover growth has been flattish year-on-year, we have achieved key milestones that will promote growth in addition to accelerating our ongoing deleveraging programme. Our bank sanctions are in place after a prolonged delay and material judgements by the courts are positive developments that will facilitate curing the pendency of our unpaid arbitration receivables," Arjun Dhawan, the Director and Group Chief Executive Officer of HCC said.

"We believe HCC is well placed to benefit from the recent boom in government infrastructure expenditure," Dhawan added.

Commenting on the performance of its arm Lavasa Corporation Ltd (LCL), the company said the corporation continues to work jointly with the consortium of lenders towards a resolution process to the satisfaction of all stakeholders.

"The RBI's recent February 12 circular scrapping SDRs (Strategic Debt Restructuring) has required LCL to rework a restructuring solution along with bankers and potential investors. Lavasa city meanwhile remains a popular tourist destination," it said.

In a separate filing, the company said that "We would like to point out that HCC Ltd and all its subsidiaries, including Lavasa Corporation are in complete compliance of the regulatory requirements and all material information is disclosed as per the requirement."