 "HCC posts 45.7% decline in net profit to Rs 118.6 crore for Dec quarter")
Hindustan Construction Company (HCC) on Thursday reported a 45.66 per cent decline in net profit to Rs 118.58 crore for the quarter ended December 31, 2021.
The company had clocked a profit of Rs 64.43 crore in the year-ago period, according to a BSE filing.
Its total income during October-December 2021 stood at Rs 2,695.89 crore, compared with Rs 2,416.93 crore in the year-ago period.
Total expenses increased to Rs 2,608.18 crore, from Rs 2,293.14 crore a year ago.
The company in a statement said HCC's debt resolution plan has been significantly advanced and is in the final stages of implementation.
It said the company is simultaneously focusing on securing new orders for business growth to capitalise on tremendous opportunities in the infrastructure space and expects the pace of order acquisition to pick up in FY 2022-23.
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HCC Director and Group CEO Arjun Dhawan said HCC developed and operated Rs 7,000 crore of value-generating BOT (built-operate-transfer) projects.
The sale underscores the company's commitment to creating liquidity that will bolster both operations and future business growth, he added.
HCC Concessions (HCON) has executed a binding term sheet in respect of 100 per cent stake sale of its subsidiary Baharampore-Farakka Highways Ltd to Cube Highways and Infrastructure V Pte Ltd, at an enterprise value of Rs 1,279 crore, reflecting an equity valuation of Rs 600 crore, according to the statement.
In addition to the equity value, it said Rs 200 crore of earnout is payable in May 2024 contingent on achieving revenue thresholds.
Furthermore, the statement said HCON will be entitled to a material revenue share for the life of the concession.