HCC posts net loss of Rs 31 crore

Engineering and construction major Hindustan Construction Company (HCC) reported a standalone net loss of Rs 30.99 crore for the first quarter ended 30 June as against a net profit of Rs 2.87 crore in the year-ago period.

Revenues for the period dipped by 8.51 percent at Rs 969.36 crore as against Rs 1059.58 crore in the corresponding quarter previous year, the company said in a statement.

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“Our quarterly performance reflects the stress faced by the infrastructure sector. Delays in decision making and environmental clearances have caused a sharp drop in the visible order book for the sector,” HCC Group Chief Finance Officer Praveen Sood said.

The company is addressing these challenges through comprehensive cost and claims management in addition to faster execution, effects of which should bear fruit soon, he said. “The recent Government announcements (on infra development) give us reason to be optimistic on faster clearances and new projects announcements.”

About the corporate debt restructuring, Sood said, “the CDR empowered group (EG) has approved the restructuring of HCC’s debt of around Rs 3,200 crore.

The timely restructuring of HCC debt will improve cash flow and provide room for operating during this challenging period.”

During the quarter, HCC subsidiary Steiner AG posted a revenue of Rs 1,177.6 crore and bagged orders worth Rs 1,115.7 crore. The order book of Steiner AG as on 30 June stands at Rs 1,716.7 crore. On subsidiary Lavasa Corporation Ltd (LCL), Sood said development and construction activities at its hill station project near Pune have resumed.

Lavasa has also launched a new range of apartments in the second township, Mugaon. “The company’s consortium of lenders has agreed to realign the company’s debt, the process for which is underway,” he said.

PTI