Companies

HCC posts Rs 42.5 cr loss in Q2

Our Bureau Mumbai | Updated on March 12, 2018

Impacted by interest costs and an inflationary environment, besides delays in deferment of decision-making in awarding of contracts, Hindustan Construction Company (HCC) posted a Rs 40.5-crore loss for the second quarter ended September 30, as against a profit of Rs 12 crore logged in the same period last year.

Net sales were down seven per cent at Rs 838 crore as against Rs 899 crore.

Interest cost was up at Rs 107 crore (Rs 67 crore).

Mr Ajit Gulabchand, Chairman and Managing Director, HCC, said, “The financial performance reflects the difficult economic and business environment, coupled with high inflation, high interest rates and significant delays in awarding of new infrastructure projects.

“With the interest rates cycle peaking and the Government focused on reviving economic growth, a pickup in new project awards and a subsequent reduction in financing costs, is expected.”

The company said Lavasa Corporation's performance continued to be adversely impacted by the Ministry of Environment and Forest's order to stop work. The Bombay High Court on Thursday directed the Ministry to pass a decisive order within three weeks, without any further extension of time.

Published on October 21, 2011

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