Mumbai-based Hindustan Construction Company Ltd.'s shares declined after net profit for the October-December quarter fell more than 80 percent on a year-on-year basis.
Still, the company managed to surpass analyst estimates on the bottomline. Net profit of Rs 4.5 crore in the third quarter was far higher than the Bloomberg consensus estimate of a Rs 7.06 crore loss.
Revenue in the October-December quarter declined 5.8 percent to Rs 866.7 crore from Rs 920.5 crore in the corresponding quarter last year, the company said in a stock exchange filing on Thursday. The Bloomberg consensus estimate stood at Rs 1,074 crore.
Earnings before interest, taxes, depreciation and amortisation fell 30.3 percent to Rs 161.24 crore from Rs 231.56 crore year-on-year. The EBITDA margin contracted 650 basis points to 18.6 percent.
HCC was the first company to get debt restructuring approval under the sustainable structuring of stressed assets (S4A) scheme.
The company is in advanced stages of collecting Rs 1,721 crore against arbitral awards as per the policy approved by the Cabinet Committee of Economic Affairs last year, the company said in a separate media statement. With that, HCC's finance costs will halve in the following quarter.
The operating margins remained firm and the cost structure under control. With the implementation of S4A and high visibility of realisation of arbitral awards worth Rs 1,721 crore. Next quarter onwards in most likely to be a positive game changing period for the company.Pravin Sood, Chief Financial Officer, HCC
Shares closed 5.1 percent lower at Rs 41.1 per share on the Bombay Stock Exchange.
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