HCC likely to post loss of Rs 37 cr in Q3

Hindustan Construction Company (HCC) is likely to post a loss of Rs 37 crore in third quarter of FY12 as against profit after tax of Rs 8 crore in a year ago quarter.

Total income is expected to go down 1% to Rs 996 crore from Rs 1,008 crore year-on-year.

EBITDA is seen going down 11% to Rs 118 crore from Rs 132 crore and operating profit margin (OPM) is likely to grow at 11.82% versus 13.09% year-on-year.

For the period of nine months ended on December 31, 2011 - company is expected to report loss of Rs 75 crore as against profit of Rs 48 crore and OPM is seen growing at 12.12% versus 13.54% year-on-year.

Expectations

Expect muted topline growth due to poor execution and absence of sizeable fresh orders in YTDFY12

At this point, faster roll out of stalled projects in the roads and hydro sector could give a boost to further order intake

Expect a net loss due to increase in interest costs by about 58% YoY

Key development during Q3FY12

The clearance on the first phase of 2000 hectares of the Lavasa project by MoEF

This was pending for about three quarters due to certain pre-condition that needed to be met by the Maharashtra govt.