From the sidelines of the World Economic Forum India Summit in New Delhi, CNBC-TV18 spoke to numerous industry veterans.
CNBC-TV18's Kevin Lee caught up with Praveen Sood, Group CFO of HCC and asked him about their Q1 performance and if the worst is over for the company.
HCC posted a good set of earnings in Q4 with the company seeing first uptick in execution. CNBC-TV18's Kevin Lee caught up with Ajit Gulabchand, CMD of HCC and began by asking him how much the company has been able to reduce their debt and also his outlook on debt going forward.
Group CFO Praveen Sood says HCC's turnover is likely to grow at around 50 percent over the next 2 years.
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.
Under the new norms, the government will release 75 percent of amount against margin free guarantee in cases where arbitral awards have been given, but have been contested.
The Mumbai metro project is likely to take 6-9 months to get fully mobilised and will start accruing turnover only by the fourth quarter of FY17, said Praveen Sood, Group CFO, HCC.
HCC's arbitration claims are at Rs 11,000 crore, says MD Ajit Gulabchand, adding that Rs 3,041 crore awarded is yet to come through.
Company's key focus would be to realise claims worth Rs 10,000 crore from the government, says Praveen Sood, CFO at HCC. He also added that company expects Rs 3,000 crore via arbitration proceedings over the next 18 months.
Hindustan Construction Company's (HCC) third quarter profit slipped 28.4 percent year-on-year (YoY) to Rs 19.4 crore, hit by provision of Rs 45.50 crore for forseeable loss. It was also hit by lower revenue but operational performance supported bottomline.
Ajit Gulabchand, Chairman and Managing Director, HCC expects a pickup in infrastructure spending in the coming year.
Since it takes one year for the rate cut to have an impact, atleast a 200 bps rate cut was needed to revive the capex cycle, Ajit Gulabchand explained.
HCC has won an order worth Rs 1783 crore to construct 36 kilometers of highway in Jammu and Kashmir.
The company‘s debt stands at Rs 4,800 crore and would repay additional Rs 1000 crore over 18 months, says Praveen Sood, CFO of HCC.
The company has been taking all efforts to convert the L1 positions into proper orders, said Praveen Sood, Group CFO of HCC.
The company is also seeing a significant pick-up in commercial vehicle sales.
Praveen Sood, CFO at HCC informed a few EPC contracts of the company in the past were delayed due to land clearance issues and added that there exists outstanding claims of approximately Rs 4,000 crore with various govt authorities.
Praveen Sood, CFO, HCC Group is a bit disappointed with order inflows on the nuclear power and hydel project side but hopes that with US President visiting India there could be development in nuclear power projects
Ajit Gulabchand, Chairman, HCC told CNBC-TV18 that the issue of payment to the industry is yet to be sorted out.
Ajit Gulabchand, chairman and managing director HCC spoke to CNBC-TV18‘s Nayantara Rai on the sidelines of the India Economic Summit.
Praveen Sood, CFO of HCC says profitability margins are coming from efforts to bring down costs. The company is seeing order inflow momentum only in the road sector as of now.
Ajit Gulabchand, CMD, HCC, says Jayanti Natrajan's exit is not just a case of change of guard but a change in the thinking of handling environment protection in the country.
Indian stock market is cheering this outcome and stocks are doing well, but that does not necessarily mean that India Inc is celebrating, says Ajit Gulabchand, CMD, HCC.
Praveen Sood, CFO, Hindustan Construction Company says at the operating level, the company has always clocked double digit margins and hopes to continue the trend in the near future. It is the interest cost that has caused the previous losses.
Due to delay in approvals we lost three years, we are now making for it. In just another three years we will be there on the doorsteps of the stock markets. So, everything is back on the table including the Lavasa IPO, Ajit Gulabchand, HCC said.