HCC net profit down over 46% at Rs 7.9 cr

MUMBAI: Hindustan Constructions Company (HCC) on Friday reported a fall of over 46 per cent in its net profits at Rs 7.9 crore for the October-December quarter.

The company had posted a net profit of Rs 14.7 crore during the corresponding quarter of 2009-10.

"This is net off foreign exchange loss of Rs 6.1 crore and Rs 2.8 crore of tax profit.liability of earlier quarters," HCC said in a statement, while explaining the reason of fall in net profit.

However, the company's turnover for the third quarter of this fiscal increased by 8.7 per cent to Rs 1,027 crore as compared to Rs 945 crore reported for the corresponding quarter of 2009-10.

Commenting on the Q3 results, HCC Chairman Ajit Gulabchand said: "During the quarter under review, we have witnessed a slowdown in infrastructure activity. Several project orders have been deferred by various government departments and private firms due to delays in acquiring land and other related clearances".

Talking about its Lavasa Project, the company said that Environment Ministry, in its order of January 17, has said that "it is prepared to consider the project on merits, subject to terms and conditions while continuing the status quo".

Work on Lavasa Corporation has been stopped since November 25, 2010, as per the orders of Environment Ministry, the statement said.

During the quarter, HCC also commenced operations of the Delhi-Faridabad Elevated Expressway project, the statement added.

Scrips of the company were trading at Rs 40.40 apiece on the Bombay Stock Exchange at 1330 hours, down 0.98 per cent from the previous close.