Hindustan Steelworks Construction Ltd (HSCL), an unlisted PSU construction company, has obtained 74 per cent of orders from infrastructure sector in 2010-11, marking its diversification away from the steel sector.

HSCL, which is awaiting CCEA approval on financial restructuring after clearance by the Finance Ministry, saw its order book swell to Rs 2,826 crore in 2010-11 from Rs 1,036 crore in the previous fiscal. Though the order book growth was 80 per cent year-on-year, steel sector's contribution was 24 per cent.

“The company's endeavour during this year will be to increase the business volume in the steel sector to a minimum of 35 per cent to honour the mandate for which the company was incorporated under Ministry of Steel,” said CMD of HSCL, Mr Malay Chatterjee.

Of the Rs 443-crore worth of orders from the steel sector, five orders worth Rs 300 crore came from Bhillai Steel Plant.

Some 83 per cent of the orders from infrastructure sector were for implementation of building structures for educational institutions, hospitals, health care centres, residential quarters, commercial and office complexes. Major order in this segment — worth over Rs 900 crore — came from Employees' State Insurance Corporation, under the Ministry of Labour, for construction of hospitals, medical colleges with allied infrastructures in Karnataka.

The liquidity situation of the company has improved during the last financial year with a cash balance of Rs 291.85 crore (Rs 205.42 crore). The increased working capital of Rs 220.08 crore (Rs 168.54 crore), according to the CMD, “will be handy in funding the projects during 2011-12”.

HSCL recorded a turnover of Rs 1,000 crore in FY2011, up 25 per cent over 2009-10, and posted an operational profit of Rs 71.21 crore, up 3 per cent.

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