HCC Q2 net profit at Rs. 23 crore
HCC registered a Net Profit of Rs. 23 crore in the Q2 of FY2016-17, as compared to Rs 10.9 crore in Q1 of FY2016-17. The turnover is at Rs 911.1 crore compared to Rs 982.4 crore, in the previous quarter. HCC’s order backlog has grown over 30% in last one year to Rs 21,309 crore in view of the government’s renewed thrust on infrastructure.
The Cabinet Committee on Economic Affairs’ (CCEA) decision to pay 75% of the arbitral award amount will result in HCC’s debt being reduced by half. HCC has arbitration awards for Rs 3,427 crore as of September 30, 2016. Further claims worth around Rs 4,173 crore are in arbitration process.
Praveen Sood, Group CFO said, “HCC’s robust order-book across key sectors, along with sustained efforts to improve operational efficiencies and cost rationalisation has given us a competitive edge to withstand the challenging economic environment. The Cabinet Committee’s path breaking decision to honour arbitration awards by releasing 75% payment will result in material debt reduction by the Company. Post the CCEA decision, the Company has further received arbitration awards which indicates that cash flows from awards are not a one-time affair, but will continue until HCC is completely deleveraged. With improved business sentiment and order booking, we expect to enhance turnover in the coming quarters.”