The Hindu Business Line : Hindustan Construction reports loss

Mumbai April 27 Hindustan Construction Company posted a loss of Rs 5.79 crore for the quarter ended March 31, 2007 against a profit of Rs 43.8 crore for the corresponding period last year. The loss was primarily due to provisioning Rs 60.38 crore for tax consequent to withdrawal of Section 80 IA benefit with retrospective effect.

The prior year tax impact of Rs 42.52 crore was adjusted by re-crediting the specific reserve created for the purpose. Net profit for the year ended March 31, 2007 fell by 70.5 per cent to Rs 36.7 crore against the previous fiscal's Rs 124.7 crore.

Turnover for the fourth quarter was up 7.7 per cent to Rs 827.7 crore (Rs 768.10 crore). Total turnover for the year went up by 18.6 per cent to Rs 2, 357.6 crore against Rs 1,987 crore recorded in the previous fiscal.

The company's board of directors has recommended a 75 per cent dividend.

Mr Ajit Gulabchand, Chairman and Managing Director, said HCC had upped its stake in the Lavasa hill township, near Pune, to over 63 per cent and plans to commence marketing in the last quarter of this year. HCC said its current orders in hand were worth about Rs 9,300 crore. The company's stock fell by 6.33 per cent to Rs 98.45 on the BSE.

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