HCC zooms 15% to hit over 5-year high on heavy volumes

For the June quarter (Q1FY24), HCC had reported a consolidated profit of Rs 52.70 crore, as compared to a loss of Rs 280.70 crore in a year ago quarter.

Shares of Hindustan Construction Company(HCC) zoomed 15 per cent to hit over five-year high of Rs 23.29 per share, in Wednesday’s intra-day trade, amid heavy volumes in an otherwise weak market. In comparison, the S&P BSE Sensex was down 0.52 per cent at 65,503 at 11:54 am.

The stock of civil construction company quoted its highest level since May 2018. So far in the financial year 2023-24, the stock has skyrocketed 70 per cent.

The average trading volumes on the counter nearly doubled in Wednesday's trade. Around 215 million equity shares, which represented 14 per cent of HCC's total equity changed hands on the NSE and BSE. 

On August 3, the board of HCC approved proposal to fund raise up to Rs 300 crore through rights issue, subject to regulatory approval.

For the June quarter (Q1FY24), HCC reported a consolidated profit of Rs 52.70 crore, as compared to a loss of Rs 280.70 crore, in the year-ago period. The company's consolidated revenue, too, grew 15 per cent to Rs 2,564.8 crore in Q1FY24 from Rs 2,228.9 crore in Q1FY23.

HCC said that sustainable growth and improved cash flow were achieved due to implementation of various projects, streamlining initiatives, and constant emphasis on achieving operational excellence at worksites.

As on June 30, 2023, the company's order book stood at Rs 13 568 crore.

In the recently concluded quarter, the final segment of Anji Khad Railway Bridge Project in Jammu & Kashmir was launched. The project is now nearing completion.

"The company has received taking over and completion certificates for two projects, viz. DGNP Dry Dock Project in Mumbai

and Tunnel-15A Project in Mizoram. Significant progress has been achieved on several projects under construction, including Mumbai Coastal Road Project, Mumbai Metro Line 3, Delhi Metro Rail Corporation’s DC06 contract," the company said.

HCC is engaged in engineering and construction of large infrastructure projects. The company’s core business primarily comprises of Engineering and Construction (E&C) services for large projects across sectors like Power (Hydro, Nuclear, Thermal), Transportation (Roads, Bridges, Metros, Ports), Water (Irrigation and Water Supply) and Industrial projects.

The Union Budget for 2023-24 recommended a 37.4 per cent rise in capital expenditure, with greater spending on transportation and infrastructure boosting capital creation for states.

Significant funding has been allocated to Defence, Road Transport and Highways, Railways, and Agriculture sectors. The Ministry of Road Transport and Highways has seen a 25 per cent increase in allocations, mainly for investment in the National Highways Authority of India (NHAI).