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HCC reports net loss of Rs 428 cr in Q4

Engineering firm Hindustan Construction Company Ltd (HCC) Friday reported a standalone net loss of Rs 427.87 crore for the fourth quarter ended March 2019 as against a profit of Rs 20.09 crore in Q4 FY18, mainly due to the provisioning made in respect of arbitration awards and claims.

Mumbai: Engineering firm  Hindustan Construction Company Ltd (HCC) Friday reported a standalone net loss of Rs 427.87 crore for the fourth quarter ended March 2019 as against a profit of Rs 20.09 crore in Q4 FY18, mainly due to the provisioning made in respect of arbitration awards and claims.

The company's income from operations for the January- March quarter declined 8.33 percent to Rs 1,322.45 crore from Rs 1,442.74 crore in the corresponding period last fiscal.

"During the quarter, the company accounted for an exceptional loss of Rs 389.17 crore which was mainly due to the provisioning made in respect of arbitration awards and claims and impairment loss in respect of asset classified as held for sale," HCC said in a statement issued here.

For the fiscal, the company reported a standalone net loss of Rs 1,961.75 crore against a net profit of Rs 77.53 crore.

Its total revenues for FY19 also declined to Rs 4,459.13 crore from Rs 4,826.08 in the previous fiscal.

"The company accounted for an exceptional loss of Rs 2,400 crore during FY19 which was largely due to the impact of Lavasa's admission into NCLT under IBC. This led to a full- year net loss of Rs 1,961.75 crore despite healthy margins in its core business," it said.

During the last quarter, the HCC signed terms with a consortium of investors led by BlackRock under which it will receive a consideration of Rs 1,750 crore for the transfer of its beneficial interest and rights in an identified portfolio of arbitration awards and claims to a special purpose vehicle (SPV) controlled by the investors.

The proceeds will be used to prepay debt of Rs 1,250 crore, while the balance Rs 500 crore will be made available to fund working capital and business growth.

"We have crossed several milestones in FY19 to strengthen HCC both financially and operationally.

Raising capital, through monetisation of assets, has been imperative to safeguard the long-term health of the company while we bore the tremendous flux within the financial sector," company's director and Group chief executive officer Arjun Dhawan said.

The company's order book stood at Rs 18,554 crore as of March 31, 2019.

Over the course of the year, the company commissioned projects like Kishanganga hydroelectric power project, Bogibeel road-cum-rail bridge and Pare hydro electric power project.

HCC's gross debt has reduced by Rs 227 crore year-on- year to Rs 3,749 crore as of March 31, 2019, it said.

Its overseas subsidiary Steiner AG reported revenues of Rs 5,894 crore and a net profit of Rs 177 crore in FY19, as against Rs 5,395 crore and Rs 64 crore, in the prior year respectively, on the back of a robust operational performance.

The company received orders worth Rs 5,896 crore in FY19, while the order backlog stood at Rs 9,654 crore as of March 31, 2019. The company has further secured orders worth Rs 2,562 crore where contracts are yet to be signed.