You are here: Home » Companies » News
Business Standard

HCC Q3 profit at Rs 234 cr; announces plan to reduce debt by Rs 2,100 cr

Total turnover in the quarter under review was at Rs 1,075 crore against Rs 1,102 crore in the year-ago period

Topics
HCC | Hindustan Construction Company

Press Trust of India  |  New Delhi 

HCC

(HCC) on Thursday reported a net profit of Rs 234 crore for the October-December quarter of 2019-20 against Rs 9.91 crore in the year-ago period mainly on the back of 'write-back' of Rs 331 crore of provisions.

Total turnover in the quarter under review was at Rs 1,075 crore against Rs 1,102 crore in the year-ago period.

The company also announced a plan to reduce its debt by Rs 2,100 crore.

"The company reported a net profit of Rs 234 crore in Q3 FY20 mainly on write-back of Rs 331 crore of provisions taken in Q4 FY19. On January 10, 2020, the company's lenders initiated a carve-out of about Rs 2,100 crore of debt to a third-party-controlled SPV along with certain arbitration awards and claims in a move that will significantly de-leverage the company and address its asset-liability mismatch," the company said in a statement.

Pursuant to the plan, will have no debt servicing obligations for the next 32 months and interest costs will reduce by at least Rs 240 crore per annum, the statement said.

Loss on completion of the debt asset carve-out transaction is expected to be at least as large as the write-back taken during this quarter, subject to statutory audit, it said adding the transaction will be in the nature of a slump sale and is subject to lenders' final approvals.

Lenders are targeting transaction closure by March 31, 2020.

Arjun Dhawan, Director & Group Chief Executive Officer, said, "We are endeavouring to permanently address HCC's asset-liability mismatch through the debt carve-out initiative plan and via conciliation efforts with our clients. The sale of non-core assets also remains a high priority for the company.''

Order backlog stood at Rs 16,142 crore as on December 31, 2019.

The company said during the quarter the Supreme Court permitted work on the Coastal Road Project in Mumbai to resume.

HCC's share of work in the project is Rs 1,169 crore.

In October 2019, marked the completion of its sixth DMRC contract with the inauguration of the Dwarka Najafgarh Corridor in Delhi.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, February 06 2020. 22:12 IST
RECOMMENDED FOR YOU
.