Hindustan Construction Company Limited has announced its unaudited financial results for the quarter ended September 30th 2011.
Key highlights are:
Turnover of INR 837.7 crore as compared to INR 898.5 crore in the corresponding quarter last year
Net loss at INR 40.5 crore
Order book is at INR 16,175 crore excluding two L1 contracts worth INR 2,077 crore
HCC subsidiaries
HCC Concessions receives INR 240 crore equity at INR 1,650 crore valuation from Xander Group
Steiner AG net profit at CHF 4.2 million compared to CHF 0.6 million, reflecting improved performance. Steiner AG order book at CHF 1.4 billion.
In addition, the company has been awarded contracts worth CHF 475 million for which contracts are yet to be signed
Lavasa - The Bombay High Court has directed Government of Maharashtra to take action pending in accordance with MoEF directives within two weeks. It has also directed MoEF to pass a decisive order by November 16th 2011.
Mr Ajit Gulabchand CMD of HCC said that "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. With the interest rates cycle peaking and the government focused on reviving economic growth, a pickup in new project awards and a subsequent reduction in financing costs, is expected."
Performance of HCC's subsidiaries:
HCC Concessions Limited concluded its INR 240 crore equity fund raising from the Xander Group at a valuation of INR 1,650 crore, diluting 14.5% in the company. The current portfolio of INR 5,500 crore includes six NHAI road concessions. The commissioning of Dhule Palesner Highway on the Maharashtra MP border is expected this year, six months ahead of schedule. Execution of the West Bengal (NH34) project that connects Bahrampore to Dalkhola is progressing on schedule.
Steiner AG has shown a good order inflow of CHF 500 million during the quarter, having signed a few significant projects Post Parc in Bern (CHF 160 million) & House of Peace in Geneva (CHF 100 million). The company registered a quarterly turnover of CHF 172 million with PAT of CHF 4.2 million.
Lavasa Corporation Limited's performance continued to be adversely impacted by the Ministry of Environment and Forest's order to stop work.
The MOEF appointed Expert Appraisal Committee recommended granting environment clearance on May 31st 2011 which was accepted by MOEF with preconditions on June 15th 2011.
Lavasa has fulfilled all the preconditions. However the MoEF by order dated October 13th 2011 said that "The final decision on the Environmental Clearance cannot be taken till all the preconditions are met including credible action by the State Government of Maharashtra and subject to the final orders of the High Court of Bombay as the matter is subjudice."
The Bombay High Court heard the case yesterday and directed the Government of Maharashtra to take action within two weeks in accordance with the MoEF directives. The court has also directed MoEF to pass a decisive order within three weeks, without any further extension of time.
The Court has adjourned the proceedings to November 16th 2011.
