HCC Q1 net profit up 41pc at Rs 27 cr

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Construction firm HCC today reported 41 per cent rise in standalone net profit at Rs 27.10 crore for the quarter ended June 30 on strong operational performance.

It had reported net profit of Rs 19.23 crore in the first quarter of 2013-14, HCC said in a filing to BSE.

"This is the fifth quarter in a row when the company has shown positive results thereby establishing that its strategy of efficient project management, cost control and focus on claim management is yielding results consistently," HCC said.

"The process of monetisation of assets/equity raising has gathered momentum which would result in deleveraging balance sheet and reducing finance cost," it added.

HCC's total income from operations declined 9.2 per cent to Rs 1,043.48 crore during Q1, 2014-15 compared to Rs 1,149.56 crore in the year-ago period. Total expenses declined to Rs 823.85 crore, from 978.28 crore.

HCC Group CFO Praveen Sood said: "The company is fully geared up to capture additional opportunities in infrastructure sector promised by the new government with economic revival.

"Meanwhile, improved investor's sentiments have opened many opportunities for the company to raise equity or equity like instruments which will not only deleverage the company but also cut finance cost substantially."

Other income went up to Rs 31.62 crore from Rs 26.82 crore and foreign exchange gain stood at Rs 0.63 crore during Q1, compared to loss of Rs 12.04 crore in the year-ago period. The finance cost increased to Rs 156.16 crore from Rs 148.86 crore during the same period.

During Q1, HCC bagged two new orders worth Rs 557 crore, taking the total order book to Rs 13,897 crore (excluding L1 contract worth Rs 753 crore).

The board of directors of HCC approved raising the long term funds by way of issuance of equity shares through qualified institutions placement for an amount not exceeding Rs 750 crore.

The HCC scrip closed at Rs 39.65, up 3.26 per cent, on the BSE.

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