The shares of Hindustan Construction Company (HCC) lost a quarter of its value on Thursday, after auditors of the firm raised concerns over Lavasa’s ability to continue as a going concern. The stock plunged as much as 24.8% to hit its lowest level in more than two years. Thursday’s fall in the stock was its biggest single-day percentage fall ever. As on March 31, the net worth of Lavasa, its subsidiaries, JVs and associates has been “significantly eroded”; most of the entities have incurred losses or do not have any operations during the year ended March, the auditors said.
The company has defaulted on dues payable to bondholders and also has external borrowing from banks and financial institutions, principal and interest payments for which have been delayed. According to Bloomberg data, the company has an outstanding of Rs 220 crore including interest on two bonds with next principal and interest due on June 30.
“Lavasa continues to work jointly with consortium of lenders towards a resolution process to the satisfaction of all stake holders,” the company said in an exchange filing. Lavasa, which is developing a private hill city project in Maharashtra, reported a net loss of Rs 682 crore for FY18, against a loss of Rs 166 crore a year earlier.
Besides, the consolidated net loss of its parent HCC widened to Rs 1,090 crore in FY18 against a net loss of Rs 983 crore a year ago.