Hindustan Construction Company Ltd (HCC) posted a 41% dip in net profit at Rs 18.19 crore for the quarter ended June 30, 2009, as compared to Rs 30.84 crore recorded during the previous corresponding period. The company reported 8% rise in sales at Rs 964.09 crore for the quarter, as compared to Rs 895 crore recorded during the previous corresponding period. Operating profit rose 22% at Rs 112 crore, compared to Rs 91 crore in the corresponding period last year and EBIDTA improved to 12.8% against 10.5% in 2008-09.
According to Ajit Gulabchand, chairman and managing director, HCC, ?We expect substantial increase in the order book given the increased government focus on infrastructure development in the coming months. The successful qualified institutional players (QIP) reaffirms investor confidence in HCC and our investments in Lavasa Corporation continue to show remarkable performance in sales and booked profits.?
Lavasa, the ?hill city? being developed by HCC, has reported income from operation at Rs 93 crore during fiscal Q1. The recent fresh equity investment in Lavasa has gone up to Rs 581.25 crore with IndusInd Bank recently investing Rs 50 crore by way of deep discounted convertible debentures (DDCC) reaffirming Lavasa?s valuation of Rs 10,000 crore.
HCC?s ?order book? position has improved by 50% to Rs 15,412 crore. HCC enjoys a growing presence in power generation as is evident in its increasing engagement in hydel projects.
Explaining the reasons behind the dip in net profit, CFO Pravin Sood said, ?During the quarter ended June 30, 2008, we had made a profit of Rs 60 crore on account of sale of Vikhroli land to a subsidiary company called Pachkudir. During the same period, our losses in foreign exchange reserves stood at Rs 50 crore. This year, we spent an additional Rs 5.6 crore on the inauguration of Bandra-Worli Sea Link, apart from other expenses. Hence, the net profit figures cannot be comparable as there is a difference of only Rs 10 crore on account of profit and loss.?