HCC consolidated net profit rise 129% to ₹319 crore in Q2
1 min read . Updated: 10 Nov 2022, 05:06 PM IST
PremiumConsolidated income of HCC during July-September period dropped to ₹2,515.15 crore from ₹2,834.84 crore in the year-ago period
Hindustan Construction Company (HCC) on Thursday reported a 129% rise in its consolidated net profit at ₹319.03 crore for the quarter ended September on the back of improved operational efficiencies.
The company had posted a consolidated net profit of ₹139.23 crore in the year-ago period, HCC said in a filing to BSE.
However, the consolidated income of company during July-September period dropped to ₹2,515.15 crore, from ₹2,834.84 crore in the year-ago period, the filing said.
The consolidated expenses of HCC declined to ₹2,423.88 crore, as against ₹2,736.23 crore earlier.
HCC E&C reported standalone turnover and EBITDA of ₹1,249.1 crore and ₹228.2 crore, respectively, in Q2 FY23, as against ₹932.5 crore and ₹44.4 crore, respectively, in Q2 FY22. The company’s order book stood at ₹13,784 crore as of 30 September 2022.
HCC’s strong operational performance and earnings during the quarter were achieved due to improved operational efficiencies through a leaner and efficient organisational structure, the company said in a statement.
HCC successfully concluded its debt resolution plan during the quarter, duly supported by 23 banks and financial institutions.
The company said that it has transferred ₹2,856 crore of lenders’ liability along with beneficial economic interest in arbitration awards and claims of ₹6,508 crore as consideration to a Special Purpose Vehicle (SPV).
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“The SPV debt is significantly overcollateralised and is expected to be fully serviced from its own receivables. This will address HCC’s asset-liability timing mismatch, besides achieving a material de-leveraging, with the focus of the Company shifting to securing new orders for its growth phase," it said.
The company has recorded an exceptional gain with respect to adjustment for the reduction/reconciliation in interest liabilities and waiver of penal interest on the issuance of NCDs in lieu of lenders liability transferred to SPV.
HCC has constructed 26% of India’s Hydro Power generation and 60% of India’s Nuclear Power generation capacities, over 4,036 lane km of Expressways and Highways, more than 360 km of complex Tunnelling and 395 Bridges.
HCC Ltd. serves the infrastructure sectors of transportation, power and water. The HCC Group, with a group turnover of ₹10,669 crore, owns HCC Ltd., HCC Infrastructure Co. Ltd., and Steiner AG in Switzerland.
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