HCC
The company posted pretty disappointing numbers for Q1FY16. Net sales for the quarter dropped 6% (YoY) at Rs.975 crore. Though it managed to bring down overall costs by 19% and raw material costs too dropped 14%, its subcontracting charges rose 16%. EBITDA at Rs.164 crore, showed a drop of 20% and margins fell from 19.56% to 16.82%. Tax outgo for the quarter was down by a whopping 69% at Rs.4 crore from Rs.13 crore in previous Q1. And thanks to this, the fall in net profit was stemmed – it came in at Rs.8 crore, down by a huge 70%.
The company’s current order book stands at Rs.13,920 crore excluding L1 contracts worth Rs.2990 crore. It sold 26% stake in Vikhroli Corporate Park on 10th July’15 for Rs.90 crore. The company has received Rs.77 crore resulting in gain of Rs.76 crore which will be recognized in Q2. Thus, Q2 could see “better” numbers irrespective of working efficiency. Another major trigger in the stock price in near future could be the news of its stake sale in Nirmal BOT and Dhule Palesner Tollway.