Hindustan Construction Company (500185) Q4 97/98 earnings summary

Executive summary

• FY ended June 30, 1998 turnover rose 21% YoY to Rs. 37,563.57 lacs; profit after tax increased to Rs. 431.97 lacs from Rs. 324.51 lacs.

• Order book stood at Rs. 1,540.70 crores at June 30, including the remaining work under the Nathpa Jhakri Joint Venture.

Financial highlights

• Turnover was Rs. 37,563.57 lacs vs. Rs. 31,170.13 lacs; profit before tax was Rs. 506.97 lacs vs. Rs. 407.51 lacs.

• Profit after tax was Rs. 431.97 lacs vs. Rs. 324.51 lacs; EPS was Rs. 2.16 vs. a prospectus projection of Rs. 15.49.

• Excluding the Nathpa Jhakri JV share, income from operations was Rs. 30,067.70 lacs; other income was Rs. 352.48 lacs vs. Rs. 106.90 lacs.

• Other income included net gains of Rs. 128.29 lacs on asset sales, Rs. 95.73 lacs on investment sales, and Rs. 60.89 lacs of earlier-year provisions no longer required.

Outlook and guidance

• Tenders for 8 projects worth over Rs. 1,800 crores awaited client decisions; 4 projects worth over Rs. 1,800 crores were prequalified, and bids for 9 projects worth about Rs. 2,365 crores were under evaluation.

• Management expected a sizeable share of new projects; Mumbai-Pune Expressway work was being accelerated toward its 27-month completion schedule despite initial delays.