HCC posts consolidated net loss of Rs 234 cr in Q2

Hindustan Construction Company (HCC) on Thursday reported a consolidated net loss of Rs 233.71 crore for the quarter ended September 30, 2019. The company had clocked a net profit of Rs 473.70 crore in the corresponding quarter of the previous fiscal, it said in a regulatory filing to the BSE.

Its total income during the quarter under review declined to Rs 2,302.09 crore from Rs 2,445.53 crore in the year-ago period. Total expenses declined marginally to Rs 2,310.69 crore during the second quarter as against Rs 2,414.51 crore in the year-ago quarter.

On a standalone basis, the company reported narrowing of its net loss to Rs 165.46 crore during the quarter from Rs 1,525.23 crore in the corresponding quarter of the previous fiscal. "The company reported a net loss of Rs 165 crore mainly on account of deferred tax asset write-off in Q2 FY20 as against a net loss of Rs 1,525 crore in the same quarter last year on account of write-offs related to Lavasa," it said.

The company is currently the lowest bidder for NHPC's 2,000 MW Lower Subansiri Hydro Electric Power Project. HCC bid Rs 1,922 crore for construction of balance civil works of the power house complex, from head-race-tunnel intake structures to tail-race channel, it added.

During the quarter, the company filed a writ petition before the Supreme Court praying that dues payable under Arbitration Awards - which have the force of decrees - be released immediately, it said. Arjun Dhawan, director & group chief executive officer, said, "The Finance Minister, in her recent press conference, communicated her resolve to address the fallout due to delayed honouring of arbitration awards by government agencies. We are grateful for this."

Honouring contract provisions and timely dispute resolution are fundamental parameters for a conducive business environment that would otherwise stall funding for India's Rs 100 lakh crore infrastructure dream, he added. "In approaching the Supreme Court, HCC has prayed for the court to restore balance to the inherently unfair practice of avoiding payment through mechanical challenges in the courts," Dhawan said.

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