skip to content
Thursday, July 25, 2024
HomeUncategorizedHCC Q3 FY17 net falls 80.49% to Rs 4.55 crore

HCC Q3 FY17 net falls 80.49% to Rs 4.55 crore

- Advertisement -

Engineering firm HCC reported 80.49 per cent decline in net profit for the December quarter at Rs 4.55 crore, mainly on account of decline in revenues.

The company had reported a net profit of Rs 23.33 crore in the corresponding quarter last fiscal.

Its total revenues for October-December stood at Rs 944.09 crore against Rs 1,058.04 crore a year-ago, registering a decline of 10.76 per cent.

“Our business continues to perform well in a world that is difficult and changing at a rapid pace. The operating margins remained firm and the cost structure under control,” its Group Chief Financial Officer Praveen Sood said.

He said with the implementation of S4A and high visibility of realisation of arbitral awards worth Rs 1,721 crore, finance cost is likely to come down to half from next quarter onwards as compared to this quarter.

“Financial flexibility will support our strategic initiatives and we remain optimistic to leverage opportunities thrown by thrust on infrastructure by government with substantial increase in Budget for infrastructure outlay that will potentially drive incremental growth for the company,” Sood said.

HCC is the first company to get its debt restructured under the Sustainable Structuring of Stressed Assets (S4A) scheme and will get significant relief in cash flows, he said.

As per the scheme, out of the total debts aggregating Rs 5,107 crore, Rs 2,681 crore is to be bifurcated into sustainable debt to be serviced as per existing terms and conditions and remainder is to be converted into fully paid up equity shares and optionally convertible debentures (OCD).

The company has allotted equity aggregating Rs 808.55 crore and OCDs aggregating Rs 1,441.49 crore and is in the process of allotting balance number of equity shares and OCDs.

The company has received communication from government agencies to submit BG and Escrow Account details for release of 75 per cent of arbitral awards amounting to Rs 1,721 crore.

HCC has arbitration awards for Rs 3,465 crore as of December 31, 2016. Further claims worth around Rs 4,606 crore are in arbitration process.

In the current financial year, HCC has, so far, won orders worth Rs 5,375 crore and is also the lowest bidder in projects worth Rs 2,804 crore where the contracts are yet to be signed.

- Advertisement -
- Advertisement -
- Advertisement -


Must Read

- Advertisement -

Related News