Hindustan Construction Company (500185) Q4 98/99 earnings summary

Executive summary

• FY ended June 30, 1999 turnover rose 66% YoY to Rs 62,540.25 lakh; profit after tax increased to Rs 924.66 lakh from Rs 431.97 lakh.

• Performance was described as satisfactory despite weak infrastructure spending, delayed projects and thinner industry margins.

Financial highlights

• Profit before interest, depreciation and tax was Rs 5,973.72 lakh, up from Rs 4,111.09 lakh; profit before tax was Rs 1,061.26 lakh versus Rs 506.97 lakh.

• Interest expense increased to Rs 3,240.68 lakh from Rs 2,416.05 lakh; depreciation rose to Rs 1,671.78 lakh from Rs 1,188.07 lakh.

• Proposed equity dividend increased to Rs 1.50/share from Rs 1.00/share; proposed dividend totaled Rs 300.46 lakh.

• Total assets rose to Rs 40,587.13 lakh from Rs 31,630.96 lakh; net fixed assets were Rs 18,942.28 lakh and net current assets Rs 20,356.31 lakh.

Outlook and guidance

• Work on hand exceeded Rs 1,430 crore as of June 30, 1999, including remaining work under the Nathpa Jhakri Joint Venture.

• Decisions were pending on tenders for 9 projects worth over Rs 1,600 crore; 11 projects worth about Rs 1,500 crore were in prequalification, with bids expected soon.

• Prequalification bids for 19 projects worth about Rs 4,200 crore were under evaluation; management expected to secure a sizeable share of new projects.