Mumbai-based Hindustan Construction Company (HCC) has posted a net loss of 130.4 crore for the quarter ended December 31, 2011, as against Rs 8 crore logged in the same period last year.
The company has recorded a forex loss of Rs 68 crore, besides provisioning Rs 52 crore for expected loss in two projects and Rs 27 crore for encashment of a bank guarantee, which is being contested by the company.
Turnover dropped to Rs 949 crore (Rs 1,028 crore).
Lavasa project
On Lavasa Corporation, HCC said following the environment clearance to phase I construction had resumed and the company was in the process of getting the project site fully mobilised.
Mr Ajit Gulabchand, Chairman and Managing Director, said, “The financial performance reflects the difficult economic and business environment. The revenue growth was lower due to slow order booking during the last four quarters, execution bottlenecks, rising interest cost and payment delays by clients.
“In this challenging environment, we are focused on the judicious use of capital and improving collections / claims and reduction in cost. Initiatives targeted in these areas have already resulted in improvement.”
On Friday, the company scrip closed at Rs 21.10 down 2.54 per cent over previous close on the BSE.