HCC net doubles to Rs 12.2 cr

MUMBAI: Leading construction firm Hindustan Construction Company today reported an over two-fold jump in net profit to Rs 12.2 crore in the September quarter, up from Rs 5.5 crore in the same period last fiscal.

Net sales moderately rose by 4.2 per cent to Rs 898.5 crore, while the Ebidta (earnings before interest, tax, depreciation and amortisation) rose 31 per cent to Rs 117.5 crore, pushing up the Ebidta margin to a healthy 13.2 per cent.

The lower revenue realisation was primarily due to the Rs 680 crore loss from the Delhi Metro project, its chief financial officer Praveen Sood said.

He also said HCC has made provision for a Rs 20-crore damages claim from the Delhi Metro Corp for the accident at a Metro construction site which the company was executing in south Delhi, last year.

HCC's order book is likely to touch Rs 25,000 crore by end of this fiscal, up from the current Rs 19,735 crore, which rose 27 per cent on the year, Sood said, adding the firm won contracts worth Rs 1,178 crore during the September quarter.

"The orders are going to come from the power and road sectors, mainly to be contributed by hydro power," Sood said, adding HCC is also the lowest bidder for tenders worth Rs 1,537 crore.

The engineering, construction and infrastructure development firm is also looking to foray into construction ventures in the metals and mining sectors, its EPC president and chief operating officer Vinayak Deshpande said.

He also said, the company is expecting to hit the market with Lavasa IPO late November or early December. Lavasa Corporation, an HCC arm, had filed for a Rs 2,000-crore initial public offering in mid September.