HCC in focus on NHAI order of Rs 1783.42 crore

Hindustan Construction Company (HCC) secured a prestigious NHAI contract worth Rs 1783.42 crore for constructing a 36 km highway which includes 3 km of tunnels between Ramban and Banihal in Jammu and Kashmir. The project is a part of NHDP Phase-II program of NHAI on NH1A and is known for its difficult terrain and low temperatures especially in the winter seasons.

NH1A is a major connectivity to Srinagar from the rest of the country and this project will decongest the existing narrow road between Ramban and Banihal and will cut short travel time considerably due to provision of tunnels.

The project will give HCC to strengthen road related business segment. The company has already constructed 3600 lane km Expressways/ Highways across the country. In the transportation segment HCC has strong track record in construction of roads, highways and MRTS (Mass Rapid Transport System). HCC executed successfully Kolkata and sections of Delhi Metro Rail project in MRTS space. The company has built nearly 356 bridges and 300 km complex tunneling.

On July 21, 2015 HCC in joint venture with Coastal Projects received an order for construction of 9.5 km tunnel in between Tupul to lmphal for new railway line project from Jiribam to Tupul from North East Frontier Railway, Guwahati. The value of the contract is Rs 785 crore.

On the financial front, HCC's consolidated revenue increased by 7.09 per cent to Rs 10353 crore in FY15 on yearly basis. The company's new order from NHAI stood at 17.23 per cent of total revenue as of FY15. HCC has an order book, including L1 projects, stood at approx Rs 18000 crore as of FY15. It is also hoping to enhance order by Rs 3000 to 4000 crore in FY16.

The HCC share price on BSE increased by 8.68 per cent in early trades and is trading at Rs 18.45 on intraday basis.

HCC provides engineering and construction services. The Company's businesses span the sectors of engineering and construction, real estate, infrastructure, urban development and management. It has a presence in the sectors of hydro power, water solutions, transportation and nuclear power. HCC's operations also include material handling, such as aerial cableways for concrete placement, tower cranes, ropeways and hydraulic operated traveling/collapsible tunnel formwork, among others. It provides solutions in nuclear power by tie-ups with engineering and construction solution providers. In addition, the Company delivers transport systems, bridges and highways.