Hindustan Construction Company (500185) Q1 24/25 earnings summary

Executive summary

• Standalone E&C turnover for Q1 FY25 was ₹1,265.7 crore, up from ₹1,230.9 crore in Q1 FY24; standalone net profit rose to ₹22.7 crore from ₹19 crore year-over-year.

• Consolidated revenue declined to ₹1,016 crore from ₹1,926 crore (some sources: ₹1,816 crore from ₹1,926.5 crore), with a consolidated net loss of ₹2.5 crore versus a profit of ₹43.6 crore last year, mainly due to Steiner AG's loss.

• Order backlog stands at ₹9,534 crore, with the company L1 in ₹4,633 crore worth of projects, and a robust bid pipeline of ₹40,000 crore.

• Major project completions include the Numaligarh-Jorhat Road, NH34 Package 3, substantial completion in Bhutan, and Phase II of Mumbai Coastal Road.

• Plans to raise up to ₹600 crore via Qualified Institutional Placement to support growth and debt reduction.

Financial highlights

• Standalone EBITDA margin for Q1 FY25 was 12.6%, unchanged year-over-year.

• Standalone profit after tax up 20.05% year-over-year to ₹22.7 crore.

• Consolidated EBITDA margin dropped to 8.4% in Q1 FY25 from 15.4% in Q1 FY24.

• Finance costs declined due to ongoing debt repayments and reduced by 40.7% year-over-year.

• Steiner AG reported Q1 revenue of CHF 60.3 million (₹546.4 crore) and a pre-tax loss of CHF 1.9 million (₹17.5 crore).

Outlook and guidance

• Management targets accelerated order booking and growth, supported by a strong bid pipeline and strategic focus on high-margin, large projects.

• No explicit revenue or margin guidance provided, but management aims to maintain or improve recent performance.

• FY25 is expected to be a transition year, with stronger growth anticipated in FY26 as new orders convert and execution ramps up.

• Management confident in recovery of large receivables under arbitration/litigation and in utilization of deferred tax assets.