HCC looking forward to arbitration awards

HCC declared its Q3FY17 results on Thursday. The company’s revenue declined 10.78 per cent to Rs 944 crore in Q3FY17 as compared to the same period in previous financial year. Its operating profit too decreased 30.38 per cent to Rs 161 crore in Q3FY17 on a yearly basis.

HCC’s net profit dropped to Rs 4.55 crore in Q3FY17 as against Rs 23.33 crore in Q3FY16. The company’s order book has crossed the Rs 21,000-crore mark, highest in the last five years.On the nine-month financial front, HCC’s topline decreased 5.25 per cent to Rs 2838 crore in 9MFY17, as compared to the same period in the previous fiscal. The company’s bottomline also dropped 47.22 per cent to Rs 38.6 crore in 9MFY17 on a yearly basis.

HCC has maintained operating profit margins and cost structure under control. The outlook for the company looks good with the implementation of S4A and high visibility of realisation of arbitration awards of Rs 1721 crore. The company has arbitration awards of Rs 3465 crore till Q3FY17. Further claims of around Rs 4606 crore are in arbitration process.

The share price of HCC declined 5.08 per cent on the bourses in early trades and closed at Rs 41.1 on an intraday basis.