The company posted a lackluster set of dull and staid numbers for Q1FY17. The overall growth was fat. Net sales grew less than 1% at Rs.982 crore and total costs were also flat at Rs.843 crore. EBITDA was down 3% at Rs.172 crore and margins came down from 18.3% to 17.6%. Net profit for the quarter came in at Rs.11 crore, up 22%. Its order backlog stands at Rs.17,465 crore.

The big issue- debt, remains high. Its interest outgo for current Q1 rose 5% and was at Rs.180 crore. It is sitting on debt worth Rs.12,000 crore and though eager to sell its no core assets, is not able to find any buyers. Three days ago it received a Rs.1750 crore order from IRCON. But till it brings down debt, the market will continue to look at the stock with disdain.

The Joint Lenders Forum has agreed to resolve HCC’s account under RBI’s S4A guideline. Under this, the company will be able to bridge the mismatch of cashflow timing between claims realization and debt servicing.