BWI: HCC Order Book up 35% in Q3 2008-09

Press release from Business Wire India
Source: Hindustan Construction Co. Ltd (HCC)
Friday, January 16, 2009 12:36 PM IST (07:06 AM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Business services, Construction, Financial Analyst, Heavy industries, Real estate, Stock exchanges
Release no: 18977
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HCC Order Book up 35% in Q3 2008-09
Turnover up 16.3% in Q3 2008-09; Operating Margin (EBDITA) Improved by 9.5% to Rs 106 crores

Mumbai, Maharashtra, India, Friday, January 16, 2009 -- (Business Wire India) -- Highlights:

For the quarter ended December 31, 2008

-- Order book improved by 35% to cross Rs 12000 crore

-- Turnover up 16.3% at Rs 876 crores compared to Rs 753 crores for the same quarter previous year

-- Operating margins (EBDITA) up 9.5 % at Rs 106 crores over Rs 96.8 crores

-- Net Profit at Rs.23.2 crores as against Rs. 25 crore (PY), owing to higher interest costs and foreign exchange losses

For the nine months ended December 31, 2008

-- Turnover up 21.4 % at Rs.2468.5 crores compared to Rs 2032.6 crores in the corresponding period last year.

-- EBDITA up at 12 % and increased by 19.3 % at Rs 280.8 crores over Rs 235.5 crores

-- Net profit dipped marginally due to increase in interest cost and foreign exchange losses

HCC (Hindustan Construction Company Limited) has registered impressive 35% growth in order book at the end of the third quarter as on December 31, 2008. In the first nine months of 2008-09, HCC received seven orders worth Rs 4404 crores and the order book currently stands at Rs 12177 crore. Further, the company is awaiting awards of contracts worth Rs.5039 crores, where it is the lowest bidder. Over and above these, the company has tenders worth Rs 30098 crores under evaluation.

Turnover and operating profit in the quarter ended December 31, 2008 have improved by 16.3% and 9.5% respectively and stand at Rs 875.9 crores and Rs 106 crores. Higher interest cost of Rs 57.3 crores, due the unprecedented liquidity crisis in the industry, coupled with foreign exchange loss of Rs 6.8 crores, caused a lower net profit of Rs 23.2 crores ( Rs 25.05 crores in PY ), down by 7.4 %.

Announcing the results, Mr. Ajit Gulabchand, Chairman & Managing Director, HCC, said, "While growth prospects are under pressure, our order book has expanded with healthy mix of new business from power, water & irrigation and transportation streams. As the government is expected to spend more on infrastructure as a contracyclical measure to battle the recessionary trends in economy, we expect our growth plans to remain on course."

Lavasa, free India's first and largest hill station being developed by HCC Real Estate Ltd, the 100 per cent subsidiary of HCC is gearing up to open its first phase for occupation in October 2009. Construction is in full swing with more than 10,000 workers at the site with an aim to complete hotels with around 150 hotel rooms; 500 residential units; 600-800 staff housing; 200 student housing; a promenade with 20,000 sq ft retail and F&B space; numerous tourism activities for estimated 500,000 visitors; Ecole Hotelier Lausanne campus; 1st phase of Apollo hospital; convention center by Accor and the Dasvino Town & Country club.

Lavasa Corporation has also received investments of Rs.450 crores from Axis Bank, Bank of India and Allahabad Bank towards 4.5 per cent equity stake in the Company in the form of Compulsory Convertible Preference Shares and Convertible Debentures.

HCC Infrastructure, another subsidiary of HCC formed to house Development and BOT projects of HCC has two projects are under execution and one project to be awarded. The Armur - Kadtal 4 lane road, Rs.315crore project in Andhra Pradesh is expected to be completed ahead of schedule in July 2009 with over 75% work already completed. The Rs 572 crore Badarpur Elevated Expressway project, a 6 lane 4.4 km Elevated Toll Road connecting Badarpur in Delhi to Faridabad in Haryana achieved financial closure in December 2008 and construction has commenced in January 2009. The Company in JV with John Laing & Sadbhav is L1 in the Rs 1415 crore, Dhule to Maharashtra / MP border project. The project is expected to be awarded to the consortium in January 2009.

Construction is also in full swing for the '247 Park', an integrated IT and Corporate Park being developed by HCC Real Estate Ltd in Vikhroli (West), Mumbai. HCC Real Estate has already achieved 50 per cent pre leasing for '247 Park' which is on track for occupation by March 2009.

About HCC

HCC is a leading construction and infrastructure development company with a rich heritage of experience. The company specializes in pioneering large-scale infrastructure development and developing new age construction technologies. The company has managed and executed several technically complex and high value projects across segments like transportation, power generation infrastructure, marine projects, oil & gas pipeline constructions, irrigation & water supply, utilities and urban infrastructure. For more information, please visit www.hccindia.com.


CONTACT DETAILS
Sandeep Sawant, Hindustan Construction Company Ltd, +91 (022) 25775959/ +91 9833992874, sandeep.sawant@hccindia.com
Amitesh Banerjee, Comma Consulting, +91 (022) 40027111/2/ +91 9819470006, abanerjee@comma.in

KEYWORDS
CONSUMER, ECONOMY, BANKING, BUSINESS SERVICES, CONSTRUCTION, Financial Analyst, HEAVY INDUSTRIES, REAL ESTATE, STOCK EXCHANGES

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