Engineering firm Hindustan Construction Company (HCC) today reported a 15.36 per cent dip in standalone net profit at Rs 20.65 crore for the March quarter due to a marginal decline in income from operations.
The company had reported a net profit of Rs 24.40 crore in the corresponding period last fiscal.
Its total income from operations during January-March quarter stood at Rs 1,175.12 crore against Rs 1,184.83 crore a year-ago.
"This is a trying period for Indian infrastructure sector, as the government has a huge task at hand to clear stalled projects and removing bottlenecks, which will take some time. In such a backdrop, our focus will remain on improving the operational efficiency and recovery of our claims," company's Chairman and Managing Director Ajit Gulabchand said.
For the year FY15, the company reported a growth of 4.6 per cent in sales to Rs 773.7 crore against Rs 640.7 crore and a marginal rise in net profit to Rs 81.65 crore compared to Rs 80.64 crore in the corresponding period last fiscal.
During FY15, the company secured nine new orders worth Rs 2,463 crore and is the lowest bidder in projects worth Rs 3,435 crore.
"Our order book currently stands at around Rs 14,500 crore. This gives us a clarity of around Rs 4,500 crore turnover in FY16. We expect some orders to come in the road transport and infrastructure sectors," Group Chief Financial Officer Praveen Sood said.
Additionally, Rs 2,220 crore worth of claims which have already been awarded in HCC's favour through arbitrations, are being aggressively pursued for early collection, he said.
"If these claims are collected, we will be able to reduce our debt of Rs 5,000 crore to some extent as well as invest in new projects," Sood said.
He further said HCC will continue to focus on exiting non-core businesses and operating assets in FY16.
