HCC posts ₹1,525-cr loss for Q2 due to write offs

PTI New Delhi | Updated on November 01, 2018 Published on November 01, 2018

The debt/asset carve-out, which will be in the nature of a slump sale, is subject to lenders’ final approvals

Hindustan Construction Company (HCC) Ltd on Thursday posted a loss of ₹1,525.23 crore for the July-September quarter, hit by exceptional write offs related to its group firm Lavasa Corporation which is under insolvency proceedings.

The company had posted a profit of ₹ 11.60 crore during the same quarter a year ago, the company said in BSE filing.

Its total income fell to ₹ 994.40 crore in July-September 2018-19 from ₹ 1,031.93 crore in July-September of 2017-18 fiscal.

The company provided for an exceptional loss of ₹ 2,011.13 crore related to write offs of its investment in group firms HCC Real Estate Ltd (HREL) and Lavasa Corporation Ltd (LCL), the filing said. HREL held 68.7 per cent stake in LCL.

The exceptional loss also includes liabilities aggregating ₹745.94 crore taken over by HCC pursuant to settlement agreements with the lenders of LCL, the filing said.

“HCC has written off its entire investment of ₹1,046 crore in Lavasa Corporation Ltd (LCL) as a matter of prudence pursuant to the admission of LCL into NCLT under IBC,” the company said.

HCC has fully accounted for all of its contingent liability obligations given to Lavasa lenders, including Corporate Guarantees and Put options, it said.

“A substantial majority of these obligations amounting to ₹943 crore have been restructured for ₹514 crore at benign, non-cash interest rates, repayable at the end of March 2023, thereby resulting in immediate savings to the company,” the company said.

HCC expects no further impact on account of its erstwhile subsidiary, it clarified.

Shares of the company Thursday ended 3.98 per cent up at ₹ 12.79 apiece on the BSE.

Published on November 01, 2018
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