Hind Construction Co

The performance is of course in no way indicative of the annual results as construction is a seasonal activity with the first three months of its financial year generally not contributing much to the turnover due to rains. In terms of percentage, the second half income accounts for more than 60 per cent of the total annual income.

While the company maintained its pre-tax profits at Rs 3.60 crore, profit margins at the operational level have fallen sharply. Operating profit margin declined from 18.34 per cent to 16.69 per cent.

HCC had raised funds through a public issue in December 1995 to develop

two new real estate projects at Vikhroli, a suburb in Mumbai. However, the company could not implement these projects on schedule.

The Vikhroli (west) project was well behind its scheduled commencement of production in January 1996. The same can be said about the other project at Vikhroli (east).

As a result, the company has again planned to concentrate on heavy civil engineering projects. This change in the nature of projects is clearly reflected in the rising interest burden, which increased by 31 per cent to Rs 8.61 crore.