The company will receive arbitration funds worth around Rs 2,000 crore by December and it will have Rs 8,800 crore worth new projects under arbitration currently, says Praveen Sood, Group CFO, HCC.
Hindustan Construction Company (HCC) has been awarded Rs 181 crore contract from Department of Atomic Energy. The order is to build premium high rise residential towers, said Praveen Sood, Group CFO, HCC. He expects margins for order to be around 10 percent, he told CNBC-TV18.
Debt on the books of HCC stands at around Rs 4,900 crore.
The company will receive arbitration funds worth around Rs 2,000 crore by December and it will have Rs 8,800 crore worth new projects under arbitration, currently, he added.
Below is the verbatim transcript of Pravin Sood’s interview to Latha Venkatesh & Nigel D\\'Souza on CNBC-TV18.
Latha: It is raining good news I must say what does this Rs 181 crore order take your total order book to?
A: With this order we will be reaching close to about Rs 22,000 crore order booking and about Rs 2,800 crore in L1 positions. If you add both of them would be around Rs 24,800 crore worth of orders total book out of which Rs 22,000 are confirm order and Rs 2,800 crore in the pipeline.
Nigel: In terms of these orders, it is a very small order in terms of your order book but what kind of margins can be looked at and in terms of those L1 orders how soon you expect to hear from them? How soon can you close it?
A: Regarding the margins from this project this is basically is building contract so we are constructing some 7.5 lakhs square feet worth of a high rise building for the atomic research centre. Margin would be somewhere around what we normally get somewhere in the range of 10 percent plus minus 1 or 2 percent.
Latha: As mu colleague said Rs 181 crore is a small book compared to the Rs 22,000 crore that you already have in your kitty but the bigger news was what we discussed with Ajit Gulabchand has there been any progress in terms of the government paying up 75 percent of the dues in cases were arbitration has gone in your favour?
A: After that the news Prime Minister\\'s Office (PMO) and the other people have basically now written to all the concerned departments that the process involved in this and then asked them to basically go and take the required approval from whatever sources possible. So, process is on hopefully we should hear some positive news from the departments.
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