Hindustan Construction Company (500185) Q4 01/02 earnings summary

Executive summary

• Transitioned to a March year-end; FY 2001-02 covers 1 July 2001–31 March 2002, so comparisons are with the corresponding nine months of FY 2000-01.

• Despite weak infrastructure investment and intense bidding, operating income and profit increased; the order book reached Rs.2,631 crore at 31 March 2002.

Financial highlights

• Gross income from operations rose 27.2% YoY to Rs.463.94 crore; net operating income excluding integrated JV turnover grew 44.7% to Rs.394.76 crore.

• PBDIT increased 45.7% to Rs.79.71 crore; PBIT was Rs.57.47 crore and reported PBT was Rs.58.01 crore.

• Reported PAT was Rs.42.75 crore, including Rs.19.99 crore from land development rights and integrated JV results; excluding extraordinary income, PAT was Rs.22.8 crore, up 193% YoY.

• PBT excluding the Rs.19.99 crore extraordinary gain and Rs.6.22 crore integrated JV profit was Rs.31.8 crore, up 107.8% YoY.

Outlook and guidance

• Management expected operating income to grow in FY 2002-03 on the strength of the Rs.2,631 crore order book, while prioritizing efficiency gains and expense reduction.

• Tenders were pending for nine projects worth Rs.3,237 crore; prequalified bids covered 15 projects worth Rs.1,787 crore, with further bids planned.

• Management took a conservative view of the next few years and targeted a larger order book; growth depended on securing work and improving operational efficiency.