Hindustan Construction Company's (HCC) third quarter earnings are likely to weak with profit falling 75 percent year-on-year to Rs 7 crore, according to analysts polled by CNBC-TV18.
Revenue may fall 1.5 percent to Rs 1,078 crore in quarter ended December 2015 compared to Rs 1,095 crore in same quarter last fiscal. Operating profit in Q3 is seen declining 21 percent to Rs 164 crore and margin may contract 370 basis points to 15.2 percent compared to year-ago period.
Claims/extraordinary items would be closely watched as there could be profit from sale of property or assets.
Analysts feel weakness in HCC's execution is likely to continue and working capital cycle may remain high.
According to analysts, while the recent bout of deleveraging by monetising assets and QIP will help contain leverage and interest cost, conversion of claim wins into cash and improvement in order inflows is paramount to improve balance sheet and boost execution.
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