HCC reports loss as interest costs, delays in awarding of new projects take toll
24 October 2011
Infrastructure major Hindustan Construction Company (HCC) reported a net loss of Rs 40.5 crore for the quarter ended 30 September, impacted by high interest costs and delays in awarding of new projects. The company had reported a net profit of Rs12.13 crore in the same quarter last fiscal.
"The financial performance reflects the difficult economic and business environment, coupled with high inflation, high interest rates and significant delays in awarding of new infrastructure projects," HCC chairman and managing director Ajit Gulabchand said.
The firm's turnover also dipped to Rs838 crore during the quarter, compared with Rs899 crore recorded during the same period of previous financial year.
The Mumbai-based firm's total order book stood at Rs16,175 crore as on 30 September, which excludes two contracts worth Rs2,077 which it has emerged as the lowest bidder.
The performance of its unit Lavasa Corporation, which is developing a $31-billion township near Pune, continued to be adversely impacted by the Ministry of Environment and Forest's (MoEF) order to stop work, it said in a statement.
"It is regrettable that our travails continue. But there is a ray of hope and court seems to have taken cognizance about Lavasa. We hope that the MoEF now takes on record what has been said and releases us from all of this pain so that Lavasa gets back to work. There is a lot to catch up with," Gulabchand said.