Hindustan Construction Company posts net profit of Rs 139 crore in Q2 FY22

Hindustan Construction Company (HCC) has reported consolidated net profit of Rs 139.23 crore in the quarter ended September 2021, as against net consolidated loss of Rs 476.61 crore in Q2 FY21, the company said in a BSE filing.

The company’s net consolidated total income stood at Rs 2,848.20 crore in Q2 FY22, a growth of 56 per cent from Rs 1,831.10 crore in Q2 FY21.

The total order book stood at Rs 16,632 crore by September 30, 2021.

As at 30 September 2021, the group has accumulated losses aggregating to Rs 3,912.64 crore which has resulted in full erosion of its net worth. The holding company also continues to default on payment to lenders along with overdue to operational creditors, it said in the regulatory filing.

HCC’s debt Resolution Plan (RP) continues to have the complete support of its lenders with continual and ongoing receipt of lender board approvals. Delay in RP implementation has resulted in the accrual of higher interest cost during the quarter. The company is simultaneously focusing on securing new orders for business growth to capitalise on tremendous opportunities in the infrastructure space and expects the pace of order acquisition to pick up further post RP closure, it said in a media release.