Mumbai: Hindustan Construction Co Ltd on Friday said its quarterly net profit fell 7.4% on year as foreign exchange losses and higher interest costs ate into profits, pushing the shares down 9%.
For the quarter ended December, the company’s net profit dipped to Rs232 million from Rs250.4 million last year, while revenue rose 16.3% to Rs8.76 billion.
“While growth prospects are under pressure, our order book has expanded with (a) healthy mix of new business from power, water & irrigation and transportation streams,” said chairman and managing director Ajit Gulabchand in a statement.
The company’s current order book is at Rs121.77 billion and is expecting to be awarded contracts worth Rs50.39 billion, where it is the lowest bidder, the company added.
During the quarter, the company said it had forex losses of Rs68 million, and interest costs rose 40% to Rs573 million.
“As the government is expected to spend more on infrastructure as a contracyclical measure to battle the recessionary trends in economy, we expect our growth plans to remain on course,” the chairman said in his statement.
Its Lavasa unit, which is a hill station being developed by the company, has secured investments of Rs4.5 billion from Axis Bank, Bank of India and Allahabad Bank for a 4.5% stake, the company added.
The company’s shares fell as much as 9% to Rs44.25 after the earnings release.