HCC shares decline 5% after Q2 net loss widens

Shares of Hindustan Construction Company (HCC) on Friday declined 5 per cent after the firm said its consolidated net loss had widened to Rs 476.61 crore in the second quarter ended September 30. After a tepid opening, the stock dropped 5 per cent to Rs 5.04 on BSE.

On NSE, it declined 4.71 per cent to Rs 5.05.

HCC on Thursday said its consolidated net loss widened to Rs 476.61 crore in the second quarter ended September 30.

The company had clocked a net loss of Rs 398.10 crore in the corresponding quarter last year, it said in a BSE filing.

Its total income during the September 2020 quarter stood at Rs 1,689.82 crore, compared to Rs 2,815.21 crore in the year-ago quarter.

The firm's total expenses declined to Rs 2,093.75 crore, as against Rs 2,176.30 crore a year ago.

"After being hit by the COVID-19 pandemic and ensuing lockdown, HCC began mobilisation of its sites and gradually resumed operations as per prescribed norms to almost 80 per cent of its capacity in the quarter ended September 30, 2020.

"The company is working with its clients on solutions to improve its working capital flow and for the accelerated recovery of costs per contract provisions," the company said in a statement.