Tax write-back last year sees HCC net falling 36%

MUMBAI: Even after recording higher sales, Hindustan Construction Company (HCC) has posted a 36% drop in net profit in the December quarter because of a write-back of excess tax in the comparable period last year.

Net profit of the construction firm declined to Rs 14.7 crore in the October-December period from Rs 23.2 crore in the year-ago period. HCC received a Rs 9-crore write-back on excess tax in the December quarter of the past financial year.

HCC, which has recently built the Bandra-Worli sea link, saw a 7.9% rise in turnover to Rs 944.9 crore in the quarter under review. The power sector contributed 40% to the turnover, whereas the roads and water supply-irrigation sectors contributed 28% and 32%, respectively, said the company in a stock exchange filling.

HCC has secured projects worth Rs 1,862 crore in the December quarter, of which around 50% is from hydel power sector, said the company. In the first nine months, HCC has posted a 12.3% growth in turnover at Rs 2,771 crore and operating margin has gone up marginally to 12.4% from 12%. Net profit stood at Rs 38.5 crore in the first nine months, lower than Rs 74 crore in the year-ago period.

The company said the net profit numbers were not comparable as it recorded a one-time gain of Rs 61 crore in the last year. Lavasa, a subsidiary, has ended the December quarter with a turnover of Rs 142.3 crore and a net profit of Rs 42 crore. The HCC stock slipped 5% to close at Rs 138.10 in a weak Mumbai market.