Hindustan Construction Company reports 33% increase in y-o-y net profit

By: | Updated: August 4, 2017 6:19 AM

Engineering major, Hindustan Construction Company (HCC), on Thursday, reported a 33% increase in year-on-year net profit to Rs 14.5 crore for the three months ended June 30, 2017.

Revenue was marginally lower by 4%, y-o-y, to Rs 991.1 crore. (Image: Reuters)

Engineering major, Hindustan Construction Company (HCC), on Thursday, reported a 33% increase in year-on-year net profit to Rs 14.5 crore for the three months ended June 30, 2017. Revenue was marginally lower by 4%, y-o-y, to Rs 991.1 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) slipped 1.1% to Rs 170 crore while operating margins expanded 70 bps to 18.27%. The company said in a statement that after the recent Cabinet order on arbitration awards, it is in receipt of letters from government agencies for the release of Rs 1,882 crore, of which it has already received Rs 839 crore. Praveen Sood, group CFO, HCC, said, “The company’s focus this year is to improve its productivity in operations while materially de-leveraging its balance sheet.

We will achieve this through the receipt of arbitration award receivables and improving free cash flow generation. Our order book is very healthy and we expect improvements in our pace of execution by this fiscal year end”. HCC secured two new orders worth Rs 1,012 crore in the quarter and its current order order book, as of June 30, stood at Rs 20,363 crore.

It added that it was the lowest bidder in two projects worth Rs 2,804 crore. The company also said that one of its toll projects – Baharampore Farakka Highways (BFHL) – on July 21, received an arbitration award of Rs 448 crore for delays on account of the National Highways Authority of India (NHAI). The daily collection for BFHL and FarakkaRaiganj Highways (FRHL) in the three months to June was 3% higher, y-o-y, at Rs 47 lakh and Rs 57 lakh each, respectively.

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