Despite a drop in revenues, engineering firm HCC today reported a 33.02 per cent increase in net profit in the first quarter ended June 30 to Rs 14.5 crore, mainly on the back of improvement in operational efficiency.
The company had reported a net profit of Rs 10.9 crore in the corresponding quarter last fiscal.
Total income for the April-June quarter declined to Rs 991.1 crore from Rs 1,041.8 crore a year ago. Total expenses came down by almost 5 per cent, from Rs 1,022.28 crore in the same period last yeat to Rs 971.63 crore in Q1 FY18.
"Our focus this year is to improve operational efficiency while materially de-leveraging our balance sheet," Group Chief Financial Officer Praveen Sood said.
He said the company will achieve productivity through the receipt of arbitration award receivables and improving free cash flow generation.
"At an order book of Rs 20,363 crore, we expect improvements in our pace of execution by this fiscal year- end," Sood added.
The company secured two new orders worth Rs 1,012 crore (HCC's share) in this quarter and is the lowest bidder in projects worth Rs 2,804 crore.
Pursuant to the recent Cabinet order on arbitration awards, HCC is in receipt of letters from government agencies for release of Rs 1,882 crore, of which Rs 839 crore has already been received, the company said.
In Q1 of FY18, its subsidiary Steiner AG posted a revenue of Rs 1,405.7 crore compared to Rs 1,402.1 crore in the previous year, while net profit stood at Rs 51.3 crore as against Rs 33.8 crore in Q1, FY17.
HCC Concessions received an arbitration award of Rs 448 crore for delays on account of the NHAI for the Baharampore Farakka Highways Ltd (BFHL) project on July 21.
On May 23, HCC's flagship hill city project Lavasa was brought under the purview of newly-formed Pune Metropolitan Regional Development Authority (PMRDA). This will benefit the broader urban development plan of the region, the company said.
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