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Hindustan Construction Company (HCC) today reported a standalone net profit of Rs 24.40 crore for the quarter ended March 31, 2014, due to host of reasons, including rise in sales and lower costs.
The construction major had reported a net loss of Rs 50.26 crore in the corresponding quarter of 2012-13 and is under corporate debt restructuring scheme.
Net sales of the company rose by 20.54% to Rs 1,184.83 crore during the quarter as against Rs 982.92 crore of Q4FY'13, it said in a filing to the BSE.
HCC did not publish the consolidated results for the last quarter, though it chose to publish consolidated annual results.
During the quarter, its total expenditure stood at Rs 1,017.49 crore, amounting to 85.88% of the net sales. During the fourth quarter of 2012-13, HCC's total expenditure was nearly 95% of its net sales at Rs 932.58 crore.
Besides, other income of the company rose by over 92% to Rs 45.78 crore in the last quarter, thereby helping HCC to report profits.
Finance costs of the company stood at Rs 150.24 crore in the last quarter, up 11%.
For the full year ended March 31, 2014, HCC reported a standalone net profit of Rs 80.64 crore against a loss of Rs 137.64 crore in FY'13. Its standalone net sales rose by 7.20% in the last fiscal to Rs 4,113.49 crore.
On a consolidated basis, HCC's loss making streak continued in the last fiscal, though it has narrowed down considerably. The company reported a net loss of Rs 277.40 crore in FY'14 against a net loss of Rs 482.46 crore of FY'13.
The consolidated net sales stood at Rs 9,592.72 crore in the last fiscal, up 13.56% from FY'13's levels of Rs 8,447.57 crore.
As on March 31, 2014, HCC's order book stood at Rs 14,249 crore.
"After two years of losses, the company improved its performance quarter by quarter to post a net profit. Efficient project management and tight cost control has helped to improve margins," the company said in a separate statement.
It further said that HCC secured nine new orders in the last fiscal worth Rs 3,218 crore.
Commenting on the results, company chairman Ajit Gulabchand said: "In an uncertain economic scenario, our focus remained on improving the operational efficiency. The company will continue to implement measures aimed at further improvement in all financial parametres."
He added that inflow of Rs 3,218 crore new orders will help the company in improving its turnover in the next few quarters.
