Infrastructure major Hindustan Construction Company (HCC) today reported 70 per cent fall in standalone net profit to Rs 8.02 crore for the first quarter ended June 30, 2015-16.
The Mumbai-based firm had posted net profit of Rs 27.1 crore in the year-ago period, it said in a BSE filing.
Standalone net sales of the company declined by 7 per cent to Rs 975.1 crore in the April-June quarter of this fiscal from Rs 1,043.5 crore in the same quarter of 2014-15, it added.
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HCC CFO Praveen Sood said in a statement that infrastructure sector continues to face significant challenges despite considerable optimism from the new Government about de-bottlenecking the sector.
"Amidst such challenging environment, our strategy remains focused on improving the operational efficiency and recovery of our claims," he added.
"HCC has successfully completed equity raising via QIP issue of Rs 400 crore on April 8, 2015. The net worth of the company post QIP is around Rs 1,786 crore having Debt Equity Ratio 2.7:1," HCC said.
The firm also sold its entire 26 per cent stake in 247 Corporate Park located at Vikhroli West (Mumbai) to Blackstone at an enterprise value of Rs 1,047 crore, which includes assumed debt, resulting in a net cash inflow of over Rs 200 crore to the HCC Group, it added.
Shares of the company today fell by 0.23 per cent to close at Rs 22.10 per share on the BSE.
