HCC revenue grows 76% sequentially to Rs. 7822.3 cr

HCC recorded Consolidated Gross Revenue of Rs. 2,416.9 crore for the quarter ended December 31, 2020, and Net Profit of Rs. 118.6 crore compared to Revenue of Rs. 2,363.8 crore and Net Profit of Rs. 223.3 crore in the corresponding period last year. With labour at various project sites reaching pre-Covid levels, the revenue for HCC E&C standalone picked up to Rs. 822.3 crore in Q3 FY21, achieving sequential growth of 76%. However, revenues declined by 14% y-o-y due to lingering impact of the pandemic.

The company registered EBITDA of Rs. 115.7 crore in Q3 FY21 with sequential growth of 210% and decline of 42% y-o-y. The Company reported a net loss of Rs. 79 crore in Q3 FY21 against net profit of Rs. 222.2 crore in Q3 FY20 (mainly due to write-back of Rs. 331 crore of provisions taken in Q4 FY19).

The Company continues to ramp up operational performance while adhering to strict safety norms, and while working with clients to improve cashflow measures. HCC's registered order backlog stood at Rs. 18,541 crore at the end of Q3 FY21.

During the quarter, HCC won two orders worth Rs. 236 crore (in JV) from the Northeast Frontier Railway to construct Railway Tunnels on the New BG Rail line in Manipur. HCC share in the JV is 55% (i.e. ~ Rs. 130 crore). Also, two bids were submitted worth Rs. 1,936 crore, which are under evaluation.

The debt carve-out resolution plan with lenders is at an advanced stage and final approval from lenders is expected in due course.

Financial highlights:

Un-audited Standalone results for Q3 FY21 vs. Q3 FY20

- Net Loss of Rs. 79 crore vs. Net Profit of Rs. 222.2 crore
- Total Income of Rs. 822.3 crore vs. Rs. 955.6 crore
- EBITDA of Rs. 115.7 crore vs. Rs. 201.4 crore and EBITDA Margins of 14.2% vs 21.2%
- Order book at Rs. 18,541 crore as of December 31,2020

Performance of HCC subsidiaries:

Steiner AG: Steiner AG reported revenues of CHF 196.2 million (Rs. 1,587.5 crore) in Q3 FY21 as compared to CHF 192.91 million (Rs. 1,395.63 crore) in the previous year quarter and a net profit of CHF 26.1 million (Rs. 206.86 crore) as compared to a net profit of CHF 4.24 million (Rs. 29.76 crore). The Company secured fresh orders worth CHF 222.1 million (Rs. 1,776.67 crore). The order book stood at CHF 1.36 billion (Rs. 10,879.23 crore) at the end of Q3 FY21. In addition to this, the Company has secured orders for CHF 145 million (Rs. 1,159.92 crore), where contracts are yet to be signed.

HCC Concessions Ltd.: Baharampore Farakka Highways Ltd registered turnover of Rs. 47.3 crore in Q3 FY21 vs Rs. 40.5 crore in Q3 FY20, a y-o-y increase of 16.9%. Post the sale of Farakka Raiganj Highways Ltd to Cube Highways in Q2 FY21, HCC has completed the construction work of the Malda Bypass (a greenfield development of 10.3 km by-passing the busy town of Malda) and which will boost the toll by ~ 50% from current levels.

Shares of HINDUSTAN CONSTRUCTION CO.LTD. was last trading in BSE at Rs.8.35 as compared to the previous close of Rs. 8.57. The total number of shares traded during the day was 355859 in over 400 trades.

The stock hit an intraday high of Rs. 8.7 and intraday low of 8.3. The net turnover during the day was Rs. 3013437.

Source : Equity Bulls

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