MUMBAI: Infrastructure firm Hindustan Construction Company (HCC) on Wednesday reported a standalone net loss of Rs 19.7 crore for the June quarter, mainly due to rise in expenses.
The company had reported a net profit of Rs 14.5 crore in the year-ago period.
Total income increased marginally to Rs 1,001.18 crore, compared with Rs 991.12 crore last year, the company said in a statement.
The expenses for the reporting quarter increased to Rs 1,029.99 crore, from Rs 971.63 crore in the year-ago.
HCC’s finance cost fell by 12 per cent year-on-year, in line with the reduction in debt from Rs 4,207 crore as on June 30, 2017 to Rs 3,719 crore as on June 30, 2018.
Its order book currently stands at Rs 18,714 crore, excluding L1 bids worth Rs 1,213 crore.
The company has also received Rs 1,624 crore till date under the CCEA’s initiative to release 75 per cent of arbitral awards against bank guarantees, the release said.
“We have successfully managed to lower our debt and reduce finance costs despite the banking crisis that has gripped the country. This has, however, dampened our ability to grow and allow for a high-performance execution of our order backlog,” said Arjun Dhawan, director and group chief executive officer, HCC.
While the company’s commitments on the cost side of the balance sheet have accelerated due to recent legislative and regulatory requirements, its substantial receivables from government agencies continue to lag, which have created a working capital strain, he said.
“HCC is taking the necessary measures to address this by not only strengthening its balance sheet, but also participating in the robust infrastructure spend in India. These measures will, among other things, include monetisation of non-core assets and accelerating the receipt of our dues from clients,” added Dhawan.
The company’s overseas subsidiary Steiner AG reported revenues of Rs 1,369 crore and a net profit of Rs 26 crore and secured fresh orders worth Rs 950 crore during the quarter.
Steiner AG’s order backlog currently stands at Rs 9,002 crore and it has also bagged contracts worth over Rs 3,044 crore, where contracts are yet to be signed.
Its another subsidiary, HCC Concessions, reported average daily collections of Rs 48.8 lakh and Rs 39.2 lakh on Baharampore Farakka Highways and Farakka Raiganj Highways, respectively.
HCC said it is in discussions with investors for the monetisation of its operational road assets.
Source: Press Trust of India