Hindustan Construction Company (HCC) on Friday reported a standalone net profit of Rs 24.40 crore for the quarter ended March 31, 2014, due to host of reasons, including rise in sales and lower costs.
New Delhi: Hindustan Construction Company (HCC) on Friday reported a standalone net profit of Rs 24.40 crore for the quarter ended March 31, 2014, due to host of reasons, including rise in sales and lower costs.
The construction major had reported a net loss of Rs 50.26 crore in the corresponding quarter of 2012-13 and is under corporate debt restructuring scheme.
Net sales of the company rose by 20.54 percent to Rs 1,184.83 crore during the quarter as against Rs 982.92 crore of Q4FY'13, it said in a filing to the BSE.
HCC did not publish the consolidated results for the last quarter, though it chose to publish consolidated annual results.
During the quarter, its total expenditure stood at Rs 1,017.49 crore, amounting to 85.88 percent of the net sales. During the fourth quarter of 2012-13, HCC's total expenditure was nearly 95 percent of its net sales at Rs 932.58 crore.
Besides, other income of the company rose by over 92 percent to Rs 45.78 crore in the last quarter, thereby helping HCC to report profits.
Finance costs of the company stood at Rs 150.24 crore in the last quarter, up 11 percent.
For the full year ended March 31, 2014, HCC reported a standalone net profit of Rs 80.64 crore against a loss of Rs 137.64 crore in FY'13. Its standalone net sales rose by 7.20 percent in the last fiscal to Rs 4,113.49 crore.
On a consolidated basis, HCC's loss making streak continued in the last fiscal, though it has narrowed down considerably. The company reported a net loss of Rs 277.40 crore in FY'14 against a net loss of Rs 482.46 crore of FY'13.
The consolidated net sales stood at Rs 9,592.72 crore in the last fiscal, up 13.56 percent from FY'13's levels of Rs 8,447.57 crore.
As on March 31, 2014, HCC's order book stood at Rs 14,249 crore.
"After two years of losses, the company improved its performance quarter by quarter to post a net profit. Efficient project management and tight cost control has helped to improve margins," the company said in a separate statement.
It further said that HCC secured nine new orders in the last fiscal worth Rs 3,218 crore.
Commenting on the results, company chairman Ajit Gulabchand said: "In an uncertain economic scenario, our focus remained on improving the operational efficiency. The company will continue to implement measures aimed at further improvement in all financial parametres."
He added that inflow of Rs 3,218 crore new orders will help the company in improving its turnover in the next few quarters.
Talking about performances of its subsidiaries, HCC said that Switzerland-based Steiner AG became its hundred percent subsidiary in the last fiscal with pre-agreed purchase of remaining 34 percent stake in the Swiss firm.
Steiner AG reported a net profit of CHF 8.15 million (Rs 54.1 crore) and a revenue of CHF 797.6 million (Rs 5,294.7 crore) in the last fiscal. The company had a cash balance of CHF 144.4 million (Rs 974 crore) and had an order book of CHF 1.18 billion (Rs 7,956 crore) as on March, 2014. Besides, it has secured orders worth CHF 300 million but contracts are yet to be signed.
On Lavasa Corporation, which is constructing 5 towns near Pune, HCC said that it registered a turnover of Rs 179.5 crore in the last fiscal and has considerably narrowed down its loss to Rs 5.7 crore against the loss of Rs 78 crore in FY'13.
During the year, over 600 residential units have been completed in Lavasa and the construction is in full swing at two towns, Dasve and Mugaon. Lavasa also witnessed 8 lakh tourists' footfalls last year, HCC said.
On HCC Infrastructure, the company said that significant progress has been made towards the completion of NH-34, its largest and most ambitious public-private partnership project in West Bengal.
The National Highways Authority of India has approved commercial operations for the Rs 1,169 crore Baharampore- Farakka highway (101 km long) and toll collection is expected to start next week, HCC said.
It added that Rs 1,378 crore Farakka-Raniganj highway (102 km long) is expected to be operational within 6 months and that 76 per cent of the project work was completed till March, 2014.
"With a majority of HCC Concessions' BOT (built-operate- transfer) having achieved maturity, the company is evaluating financial offers for select assets at both resilient and attractive valuations, despite the prolonged economic slowdown over the past 3 years," it said.
Following the results, shares of the company were trading at Rs 20.25 a piece on the BSE during the afternoon trade, up 6.30 percent from the previous close.