HCC Q1 turnover up 22.5 per cent

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Mumbai, July 25: : -- Turnover up 22.5 % to Rs 895 crore

-- Operating margin (EBDITA) up by 16% to Rs 91 crore

-- Profit before Tax and other income up by 12%

-- Order book on hand at Rs.10196 crore

HCC (Hindustan Construction Company) has registered growth in turnover and operating profit. The turnover grew by 22.5% to Rs 895 crores as against Rs 731 crores in the corresponding period last year. The operating margin (EBDITA) grew by 16% to Rs 91 crores as against Rs 79 crores in the corresponding period previous year.

The company registered Profit After Tax at Rs 31 crores as against Rs 34 crores in the previous year same quarter. During the quarter, a provision of Rs 50.6 crores on account of foreign exchange losses on foreign currency loans including FCCB was made. The Profit Before Tax stood at 39 crores as against 56 crores in the previous year same quarter owing to decline in other income (Rs 13 crores this quarter as against Rs 32 crores last year).

The company also sold its Vikhroli (East) land and booked capital gains of Rs 61.90 crores in other income during the quarter.

The company has a well diversified order backlog of Rs 10,196 crores. It is currently executing 37 projects including the two projects it recently bagged in this quarter. HCC is the lowest bidder in four projects worth Rs 4924 crores (HCC share) and is awaiting award of the contracts. Further, it has several tenders under submission worth Rs 11,174 crores.

HCC Infrastructure Ltd, the 100 per cent subsidiary of HCC, has bagged its first large BOT contract worth Rs.550 crores for Badarpur elevated highway connecting Delhi and Faridabad this quarter. The second major order received by HCC was Rs.303 crore Teesta VI hydel project of Lanco Infra.

Lavasa, the new hill station being developed by HCC Real Estate Ltd, the 100 per cent subsidiary of HCC will commence its revenue recognition from the current year. During the quarter, Axis Bank has invested Rs 250 crores in Lavasa in the form of Convertible Preference Shares and Convertible Debentures. Based on this investment, the equity valuation of Lavasa has worked out to Rs 10,000 crore.

The second successful sales launch of units at Lavasa in the month of June 2008 received a very favourable response. The 160 apartments opened for sales on June 27th were sold in a week’s time. The company has already realized pre-sales of Rs 550 crores.

Construction is in full swing for the 1.9 million sq ft ‘247 Park’ being developed by HCC Real Estate Ltd in Vikhroli (West).

About HCC