Mumbai: Infrastructure company Hindustan Construction Co (HCC) on Friday said it posted a net loss in July-Sept due to higher interest burden and significant delays in new infrastructure project allotments, sending its shares down nearly 5%.
“We are facing rough weather and this is the best we could do, of course this is also the monsoon period and that has its own share of delays,” chairman and managing director Ajit Gulabchand, told reporters.
HCC’s Lavasa is a private, planned city being built near Pune. File photo.
“I would expect the rough weather throughout the year,” Ajit Gulabchand added.
In July-Sept, the Mumbai-based company’s interest payment rose to Rs 107 crore from Rs 670.7 million a year ago.
With a total debt of Rs 417 crore as of the end of September, its debt-equity ratio stood at 2.81.
It reported a quarterly net loss of Rs 405.4 million compared with a profit of Rs 121.4 million in the year-ago period. Net sales slightly fell to Rs 838 crore from a year ago.
“The financial performance reflects the difficult economic and business environment,” Gulabchand said.
At 1.21 pm, shares of the company partially pared losses and were at Rs 26.65, down 2.02% in a choppy Mumbai market.
Its total order book as on 30 September was at Rs 16,175 crore. This excludes two contracts worth Rs 2,077 crore for which the company has emerged the lowest bidder.
The performance of arm Lavasa Corp, which is developing a $31 billion township near Pune, Maharashtra, continued to be adversely impacted by the ministry of environment and forest’s (MoEF) order to stop work, the company said in a statement.
As a result of the delays Lavasa Corp is loosing about Rs 20 million a day, it said.
The Bombay High court has directed government of Maharashtra to take action pending HCC’s unit Lavasa’s case in next two weeks and give a decisive order by 16 November, the statement said.
On 14 October, the MoEF had declined to approve the first phase of the township project, citing non-compliance with conditions specified by a ministerial panel probing the project’s violation of green rules.