HCC likely to post Q2 loss at Rs 3 cr

Hindustan Construction Company (HCC) is expected to report a loss of Rs 3 crore in the second quarter of FY12 as against profit after tax of Rs 12 crore in the corresponding quarter of last fiscal, according to CNBC-TV18 estimates.

Total income ((excluding JV)) is likely to go up by 10% to Rs 969 crore from Rs 885 crore year-on-year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are seen going up by 12% to Rs 126 crore from Rs 113 crore during the same period.

Operating profit margin is expected to be at 13.03% in the July-September quarter of FY12 as against 12.81% in same quarter the previous year.

Highlights

Q2 is seasonally weak for construction companies due to monsoons

Expect slowdown in execution due to gloomy macro environment and monsoons

Company has announced no new orders in Q2FY12

Bottom line pressure expected on account of escalating interest costs
* Expect interest costs to jump up by around 40% YoY

Key factor to watch for

Capacity to manage stretched working capital cycle and interest costs

Key development in Q2FY12

During Q2, company diluted 14.5% stake in HCC Concessions, selling the stake to Xander Group for Rs 240 crore

Stake sale at Rs 240 crore valued HCC Concessions at around Rs 1,650 crore

Lavasa update

In the latest Bombay High Court hearing on October 20th