Hindustan Construction Q4 net profit down 7.3%, beats estimates
HCC says fourth quarter net profit fell to Rs19.14 crore compared to Rs20.65 crore in the year-ago quarter
Mumbai: Ajit Gulabchand-led Hindustan Construction Co. (HCC) Ltd reported on Thursday a 7.3% fall in stand-alone net profit for the fourth quarter, hurt by slow progress in some of its projects, but beat analyst estimates.
The engineering and construction firm said fourth quarter net profit fell to ₹ 19.14 crore compared with ₹ 20.65 crore in the year-earlier quarter. Net sales, which also came in higher than expected, rose 1.8% to ₹ 1,196 crore from ₹ 1,175.12 crore a year earlier.
A Bloomberg poll of five analysts forecast stand-alone profit of ₹ 10.02 crore on sales of ₹ 1,184.4 crore.
At a consolidated level, HCC’s full-year loss widened to ₹ 318.14 crore from ₹ 159.45 crore for the year ended 31 March 2016.
During fiscal 2015-16, HCC secured nine new orders worth ₹ 5,764 crore. The company said it received ₹ 646 crore in arbitration that went in its favour during the fiscal year and that the company now has “about ₹ 3,041 crore of receivables on account of these awards which are being aggressively pursued for early collection."
Last year, HCC let its initial public offering (IPO) approval for subsidiary Lavasa Corp Ltd pass for a second time. In Thursday’s filing to exchanges, HCC said it has till date completed 1,200 residential units at its Lavasa City project. “In addition, work on 1.5 million sq. ft of residential, commercial and social development is underway in Dasve and 1 million sq. ft of residential development is underway in Mugaon," the filing said.
HCC first decided to raise ₹ 2,000 crore by launching subsidiary Lavasa Corp.’s IPO in November 2010—a plan that was later shelved. In July 2014, Lavasa Corp filed its draft red herring prospectus (DRHP) with Sebi to raise ₹ 750 crore and received Sebi approval in November 2014.
HCC’s shares closed down 1.79% to ₹ 22 on the BSE on Thursday.
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