Infrastructure major Hindustan Construction Company (HCC) today reported a five-fold jump in its standalone net profit at Rs 27.1 crore for the quarter ended December 31, 2014 on the back of higher turnover.
The company had posted a net profit of Rs 5.4 crore in the October-December quarter of the previous fiscal.
"HCC has registered a substantial growth in the net profit for Q3 of FY 2014-15. The net profit stood at Rs 27.1 crore compared to Rs 5.4 crore in the corresponding period last year," the company said in a statement.
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The turnover in Q3 registered 29 per cent growth at Rs 1,123.6 crore compared to Rs 870.4 crore in the previous year.
The total expenses stood at Rs 923.28 crore during the October-December quarter against Rs 713.28 crore in the corresponding quarter of the previous fiscal.
This is the seventh consecutive quarter when the company has shown positive results, validating that its strategy of efficient project management, cost control and focus on claim management is yielding results, the statement said.
"This quarter also witnessed additional arbitration awards in favour, and being realised by HCC. The total arbitration awards received by the company is Rs 1,994 crore from various government agencies with collection of around Rs 370 crore, as on date. In addition to this, currently we have cases worth Rs 1,372 crore in arbitration," it said.
The company has current work order at Rs 14,307 crore excluding L1 contracts worth Rs 1,176 crore.
Commenting on the company's performance, Praveen Sood, Group CFO said, "For the past two years, the company has been focussing on two revenue streams - project execution in most efficient cost effective way, and time efficient management of claim process for realising arbitration awards in its favour."
Sood said, "Q3 has been the most successful period for both our approaches. We are looking forward to quick release of payment against claims and arbitrations from government agencies to reduce our debt burden."
HCC scrip closed at Rs 29.20, down 0.17 from the previous close on the BSE.
