MIRA
INFORM REPORT
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Report Date : |
29.01.2011 |
IDENTIFICATION DETAILS
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Name : |
HINDUSTAN CONSTRUCTION COMPANY LIMITED |
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Registered Office : |
Hincon House, Lal
Bahadur Shastri Marg, Vikhroli (West), Mumbai - 400 083, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
28.01.1926 |
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Com. Reg. No.: |
11-1228 |
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CIN No.: [Company
Identification No.] |
L45200MH1926PLC001228 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMH07676E MUMH07640D |
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PAN No.: [Permanent
Account No.] |
AAACH0968B |
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Legal Form : |
Public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Subject is engaged in the business of Construction, Real Estate and Infrastructure Development. |
RATING & COMMENTS
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MIRA’s Rating : |
A (69) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 60000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an well established and a reputed company having fine
track. Financial position of the company appears to be sound. Trade relations
are reported as fair. Business is active. Payments are reported to be regular
and as per commitments. The Company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
Management non-cooperative.
LOCATIONS
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Registered Office : |
Hincon House, Lal
Bahadur Shastri Marg, Vikhroli (West), Mumbai - 400 083, |
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Tel. No.: |
91-22-25775959 |
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Fax No.: |
91-22-25777568 / 25775732 |
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E-Mail : |
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Website : |
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706-707, 7th Floor, Surya Kiran, 19, KG Marg, New Delhi – 110001,
India |
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Tel. No.: |
91-11-23358717 / 23358727 |
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Fax No.: |
91-11-23358837 |
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Factory 1 : |
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Factory 2 : |
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Factory 3 : |
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Factory 4 : |
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Branches : |
Located at:-
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DIRECTORS
As On 31.03.2010
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Name : |
Mr. Ajit Gulabchand |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Y. H. Malegam |
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Designation : |
Director |
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Name : |
Mr. Rajas R. Doshi |
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Designation : |
Director |
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Name : |
Mr. D. M. Popat |
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Designation : |
Director |
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Name : |
Mr. Ram P Gandhi |
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Designation : |
Director |
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Name : |
Mr. Fred Moavenzadeh |
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Designation : |
Director |
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Name : |
Mr. Sharad M. Kulkarni |
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Designation : |
Director |
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Name : |
Mr. Nirmal P. Bhogilal |
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Designation : |
Director |
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Name : |
Mr. K. G. Tendulkar |
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Designation : |
Dy. Managing Director |
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Name : |
Mr. S K Fotedar |
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Designation : |
Executive Director (Technical) |
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Date of Appointment : |
29.09.2005 |
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Name : |
Mr. Anil Singhvi |
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Designation : |
Director |
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Date of Appointment : |
27.07.2007 |
KEY EXECUTIVES
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Name : |
Mr. Vithal P Kulkarni |
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Designation : |
Company Secretary |
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Name : |
Mr. Pradeep Sood |
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Designation : |
Group Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2010
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Category of Shareholder |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group2 |
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Indian |
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Individuals/ Hindu Undivided Family |
1063647 |
0.35 |
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Bodies Corporate |
119803550 |
39.52 |
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Public shareholding |
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Institution |
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Mutual Funds/UTI |
30003710 |
9.90 |
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Financial Institutions / Banks |
1092638 |
0.36 |
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Central Government/ State
Governments |
5310 |
0.00 |
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Insurance Companies |
16734804 |
5.52 |
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Foreign Institutional Investors |
78366938 |
25.85 |
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Non-institutions |
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Bodies Corporate |
13962459 |
4.61 |
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Individuals |
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Individuals -i. Individual shareholders holding nominal share
capital up to Rs 0.100 Million |
38716491 |
12.77 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
3362615 |
1.11 |
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Any Other (specify) |
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Trusts |
4152 |
0.00 |
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C) Shares held by custodians and against which depository
receipts have been issued |
140146 |
0.05 |
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GRAND TOTAL (A)+(B)+(C) |
303256460 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the business of Construction, Real Estate and Infrastructure Development. |
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Products : |
Engineering and Constructions |
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GENERAL INFORMATION
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No. of Employees : |
Information
not divulged by management |
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Bankers : |
·
ICICI Bank Limited ·
Canara Bank ·
Punjab National Bank ·
Oriental Bank of Commerce ·
Indian Bank ·
State Bank of ·
IDBI Bank Limited ·
Federal Bank Limited ·
State Bank of ·
Union Bank of ·
ING Vysya Bank Limited ·
Exim Bank ·
Bank of ·
Bank of ·
HDFC Bank Limited ·
Citibank N.A. ·
J.P. Morgan Chase Bank N.A. ·
Axis Bank Limited ·
IDFC Limited ·
State Bank of Travancore ·
Standard Chartered Bank ·
Hongkong |
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Facilities : |
Note: *Represents
amount less than Rs.0.100 million
Notes: Privately Placed Non Convertible
Debentures i) 10% Non
Convertible Debentures “E” Series : Secured by first charge by way of hypothecation
of specific movable properties as specified in second schedule of the trust
deed executed on 20th January, 2003 in favour of Axis Bank
Limited, the trustees to the debenture holders. These debentures having a
face value of Rs.100/- each aggregating Rs. 150.000 millions are to be
redeemed in seven half yearly installments at the end of 48th, 54th, 60th, 66th,
72nd, 78th and 84th month from the date of allotment i.e. 25th
October, 2002. These debentures are redeemed on 23rd October, 2009. ii) 9% Non
Convertible Debentures: Secured by first charge on Company's specific
movable properties as specified in second schedule of the trust deed executed
on 17th January, 2007 in favour of UTI Bank Limited, the trustees to the
debenture holders. These debentures having a face value of Rs.10,00,000/-
each aggregating Rs.500.000 millions are to be redeemed in three annual equal
installments commencing from the end of 3rd, 4th and 5th year from the date
of first disbursement i.e. 7th September,2006. The first installment of
Rs. 166.700 millions has been paid on the due date i.e. 7th September, 2009. iii) 9.5% Non
Convertible Debentures: Secured by first charge on Company's specific
movable properties as specified in second schedule of the trust deed executed
on 17th January, 2007 in favour of UTI Bank Limited, the trustees to the
debenture holders. These debentures having a face value of Rs.10,00,000/-
each aggregating Rs.500.000 millions are to be redeemed by bullet payment at
the end of 5th year from the date of allotment i.e. 20th
November,2007. iv) 11.10% Non
Convertible Debentures: Secured by first charge by way of hypothecation
of specific immovable and movable properties as specified in first and second
schedule of the trust deed execute on 27th August, 2008 in favour of IDBI
Trusteeship Services Limited (ITSL), the trustees to the debenture holders.
These debentures having a face value of Rs. 10,00,000/- each aggregating Rs.
1000.000 millions are to be redeemed in four equal installments at the end of
4th, 5th, 6th and 7th year from the date of allotment ie. 5th August, 2008. The above debentures (i) to (iv) are also secured by way of mortgage
of a flat situated at Lok Gaurav Complex, Vikhroli. Banks: 1. Cash credit limits are secured against hypothecation of work in
progress, stores, book debts, dues and advances and residual charge/mortgage
on plant & machinery and land and buildings at Village Tara, District
Raigad. 2. EXIM Bank Term Loan Secured by a first charge on movable fixed assets acquired/to be
acquired by the Company as specified in schedule III-A of the loan agreement
executed on 22nd March,2007. 3. State Bank of
Travancore Term Loan Secured by a first charge by way of hypothecation of a pool of
specific plant, machinery, tools and accessories acquired / to be acquired by
the Company as specified in schedule II of the deed of hypothecation executed
in favour of the Bank on 15th February, 2007 and deed of hypothecation
executed on 23rd March, 2009 for disbursement of Rs.750.000 millions on 25th
March, 2009. 4. Bank of Secured by first charge by way of hypothecation of specific assets in
favour of the Bank as described in the fourth schedule of the deed of
hypothecation executed on 26th December, 2007. 5. State Bank of
Secured by first charge by way of hypothecation of specific fixed
assets in favour of the Bank as described in the annexure II to the agreement
of loan executed on 30th November, 2007. 6. Axis Bank Secured by first charge by way of hypothecation of specific movable
fixed assets as specified in the schedule annexed to the loan agreement
executed on 29th September, 2008. 7. IDBI Bank Secured by way of a) Second charge on all the movable assets of the Company
as on March 31, 2008 and b) First charge on one Flat located at "Greater
Kailash - II" New Delhi - 110048. 8. Bank of Secured by first charge by way of hypothecation of specific movable
properties as described in the second schedule of the composite hypothecation
agreement of loan, executed on 18th May, 2009. 9. Standard Chartered Bank Secured by first charge by way of hypothecation of fixed movable
assets acquired under the facility as described in the first schedule to the
memorandum of hypothecation executed on 10th November, 2009. 10. Development Bank of Secured by first charge by way of hypothecation of specific movable
assets based on the terms of the deed of hypothecation to be executed. The
creation of security is under process. Others: 1. SREI Equipment Finance Private Limited Secured by first charge by way of hypothecation of specific movable
assets as described in the annexure to schedule VIII of the loan agreement
executed on 3rd February, 2010 (for disbursement of Rs.250.000 millions) and
on 2nd March, 2010 (for disbursement of Rs.500.000 millions).
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Banking
Relations : |
- |
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Auditors : |
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Name : |
K. S. Aiyar and Company Chartered Accountants |
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Integrated Joint Venture Company: |
v Nathpa Jhakri Joint Venture v HCC-Pati Joint Venture v Kumagai-Skanska-HCC-ltochu Group v HCC-L and T Purulia Joint Venture v Alpine - Samsung - HCC Joint Venture v Alpine - HCC Joint Venture v
Dhule Palesner Tollway Limited |
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Subsidiaries and Its Subsidiaries : |
v
Hincon
Technoconsult Limited v
Western
Securities Limited v
Pune
Paud Toll Road Company Limited v
HCC
Real Estate Limited v
HCC
Singapore Enterprises Pte Limited v
HCC
Mauritius Enterprises Limited v
Nirmal
BOT Limited v
HCC
Aviation Limited v
Badarpur
Faridabad Toll ways Limited v
HCC
Infrastructure Limited v
HCC
Construction Limited v
Panchkutir
Developers Limited v
Highbar
Technologies Limited v
Baharampore-Farakka
Highways Limited v
Farakka-Raiganj
Highways Limited v
Raiganj-Dalkhola
Highways Limited v
HREL
Township Developers Limited v
HREL
(Thane) Real Estate Limited v
Maan
Township Developers Limited (Previously Hinjewadi Township Limited) v
Nashik
Township Developers Limited v
Charosa
Wineries Limited v
Powai
Real Estate Developers Limited v
Lavasa
Corporation Limited v
HCC
Realty Limited v
Lavasa
Hotels Limited v
Warasgaon
Lake View Hotels Limited (Previously Lavasa Star Hotel Limited) v
Appolo
Lavasa Health Corporation Limited v
Ecomotel
Hotels Limited v
Dasve
Business Hotels Limited v
Dasve
Convention Centre Limited v
Lakeshore
Watersport Company Limited v
Lakeview
Clubs Limited v
Dasve
Hospitality Institutes Limited v
Dasve
Retails Limited v
Spotless
Laundry Services Limited v
SOL
Hospitality Limited * v
Lavasa
Bamboocraft Limited v
Green
Hill Residences Limited v
Knowledge
v
Full
Spectrum Adventure Limited v
Space
Theme Park India Limited ** v
My
City Technology Limited v
Reasonable
Housing Limited v
Minfur
Interior Technologies Limited v
Verzon
Hospitality Limited v
Rhapsody
Hospitality Limited v
Sirrah
Palace Hotels Limited v
Andromeda
Hotels Limited (100%) v
Valley
View Entertainment Limited v
Whistling
Thrush Facilities Services Limited v
Warasgaon
Power Supply Limited v
Sahyadri
City Management Limited v Warasgaon Tourism Limited * - Ceased to be subsidiary from May'09 ** - Ceased to be subsidiary from April'09 |
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Other Related Parties : |
v
Hincon Holdings
Limited v
Vikhroli Corporate
Park v
Bon Sera Hotels Limited v
Palmetto Hospitality
Limited v
Gulabchand
Foundation (formed under section 25 of Companies’ Act, 1956) |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
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50,000 |
9.5% Redeemable Cumulative Second Preferences Shares |
Rs.100/- each |
Rs.5.000 Millions |
|
49,50,00,000 |
Equity Shares |
Rs. 1/- each |
Rs. 495.000 Millions |
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Total |
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Rs. 500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
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|
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|
30,32,49,600 |
Equity Shares |
Rs. 1/- each |
Rs. 303.200
Millions |
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Add – Forfeited Shares |
|
Rs. 0.100
Millions |
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|
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Total |
|
Rs. 303.300 Millions |
NOTES:
Out of 30,32,49,600 Equity Shares of Re.1/- each
(a) 12,68,66,250 Equity Shares were issued as fully paid Bonus Shares by capitalisation of Reserves and Surplus.
(b) 2,90,55,400 Equity Shares were issued to two SEBI Registered Institutional Investors and a Domestic Mutual Fund on a preferential basis on 31st March, 2005.
(c) 2,69,54,200 Shares representing 2,69,54,200 Global Depository Shares were issued on 29th March, 2006 pursuant to Global Depository Offering by the Company. Out of the above 2,68,14,054 Global Depository Shares (previous year 2,68,14,054) have been converted into Indian Equity Shares.
(d) 4,70,00,000 Equity Shares were issued to QIBs by way of Qualified Institutional Placement on 4th July, 2009
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
|
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1] Share Capital |
303.300 |
256.300 |
256.300 |
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2] Share Application Money |
0.000 |
151.900 |
151.900 |
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3] Reserves & Surplus |
14868.500 |
9640.300 |
9632.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
15171.800 |
10048.500 |
10040.600 |
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LOAN FUNDS |
|
|
|
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1] Secured Loans |
9630.300 |
9041.000 |
5207.500 |
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2] Unsecured Loans |
15516.700 |
14177.000 |
13241.100 |
|
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TOTAL BORROWING |
25147.000 |
23218.000 |
18448.600 |
|
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DEFERRED TAX LIABILITIES |
1426.400 |
1131.700 |
1132.900 |
|
|
|
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|
|
|
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TOTAL |
41745.200 |
34398.200 |
29622.100 |
|
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APPLICATION OF FUNDS |
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|
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|
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|
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FIXED ASSETS [Net Block] |
11496.900 |
11281.800 |
9531.000 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
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Item Awaiting Completion for Commissioning |
348.500 |
464.400 |
675.000 |
|
|
|
|
|
|
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INVESTMENT |
4086.900 |
3655.000 |
2955.400 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
35652.200
|
27766.400 |
21438.700 |
|
|
Sundry Debtors |
26.500
|
47.100 |
44.500 |
|
|
Cash & Bank Balances |
1883.200
|
1538.700 |
2643.500 |
|
|
Other Current Assets |
47.900
|
38.100 |
19.800 |
|
|
Loans & Advances |
8632.600
|
5283.500 |
2954.000 |
|
Total
Current Assets |
46242.400
|
34673.800 |
27100.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
11867.900
|
10321.100 |
0.000 |
|
|
Other Current Liabilities |
6652.100
|
3704.900 |
10174.200 |
|
|
Provisions |
1909.500
|
1650.800 |
465.600 |
|
Total
Current Liabilities |
20429.500
|
15676.800 |
10639.800 |
|
|
Net Current Assets |
25812.900
|
18997.000 |
16460.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
41745.200 |
34398.200 |
29622.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
36292.100 |
33137.600 |
30827.600 |
|
|
|
Other Income |
130.100 |
588.300 |
387.100 |
|
|
|
TOTAL (A) |
36422.200 |
33725.900 |
31214.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Construction Expenses |
26476.800 |
23901.400 |
23049.300 |
|
|
|
Employees Remuneration and Benefits |
3943.500 |
3749.000 |
2972.300 |
|
|
|
Office and site Establishment Expenses |
1593.000 |
1172.800 |
1139.900 |
|
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
7.200 |
|
|
|
TOTAL (B) |
32013.300 |
28823.200 |
27168.700 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4408.900 |
4902.700 |
4046.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2051.500 |
2105.000 |
1524.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2357.400 |
2797.700 |
2521.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1139.000 |
1152.200 |
961.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1218.400 |
1645.500 |
1560.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
404.000 |
392.000 |
472.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
814.400 |
1253.500 |
1087.700 |
|
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2799.000 |
2079.500 |
NA |
|
|
|
|
|
|
|
|
|
Add |
TRANSFERRED
FROM DEBENTURE REDEMPTION RESERVE |
54.100 |
85.000 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
100.000 |
250.000 |
NA |
|
|
|
Proposed Dividend |
242.600 |
205.000 |
NA |
|
|
|
Tax on Dividend |
41.200 |
34.800 |
NA |
|
|
|
Debenture Redemption Reserve |
87.500 |
129.200 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
3196.200 |
2799.000 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
785.400 |
707.300 |
NA |
|
|
TOTAL EARNINGS |
785.400 |
707.300 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components, embedded goods and Spares-parts |
652.600 |
962.300 |
519.100 |
|
|
|
Capital Goods |
1803.900 |
908.900 |
690.300 |
|
|
TOTAL IMPORTS |
2456.500 |
1871.200 |
1209.400 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
2.80 |
4.89 |
4.24 |
|
|
|
- Diluted |
2.60 |
4.49 |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 (1st
Quarter) |
30.09.2010 (2nd
Quarter) |
31.12.2010 (3rd
Quarter) |
|
Net Sales |
9953.550 |
8845.690 |
10085.930 |
|
Total Expenditure |
8695.960 |
7712.920 |
8826.720 |
|
PBIDT (Excl OI) |
1257.590 |
1132.770 |
1259.210 |
|
Other Income |
30.830 |
61.090 |
4.700 |
|
Operating Profit |
1288.420 |
1193.860 |
1263.910 |
|
Interest |
577.390 |
670.730 |
748.150 |
|
PBDT |
711.030 |
523.130 |
515.760 |
|
Depreciation |
346.830 |
358.510 |
381.820 |
|
Profit Before Tax |
364.200 |
164.620 |
133.940 |
|
Tax |
81.060 |
43.250 |
54.500 |
|
Profit After Tax |
283.140 |
121.370 |
79.440 |
|
Net Profit |
283.140 |
121.370 |
79.440 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
2.23
|
3.71 |
3.48
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.35
|
4.96 |
5.06
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.11
|
3.58 |
4.26
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.16 |
0.16
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.00
|
3.87 |
2.90
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.26
|
2.21 |
2.55
|
LOCAL AGENCY FURTHER INFORMATION
Sundry
Creditors
Rs.
In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
11867.900 |
10321.000 |
NA |
Company
History:
Subject is a spearheading force in engineering construction,
both in
OPERATIONS:
The turnover of the Company at Rs. 38629.700 millions has
shown an increase of 9.8% as compared to Rs. 35183.200 millions for the
previous year. The profit before tax is Rs. 1218.400 millions as compared to
Rs. 1645.500 millions for the previous year.
The Directors are pleased to inform that during the year
under report, the Company has secured the following major contracts.
• Dagachhu Hydro Power Plant (Civil Works), 114 MW, Bhutan
Contract Value: 3880.000 millions
• Gosikhurd Hydel Scheme, 24 MW, Maharashtra Contract Value:
2290.000 millions
• Pare Hydro Electric Project,110 MW, Arunachal Pradesh
Contract Value: 2760.000 millions
• Pumped Water Supply scheme from Kesaria to Sonaria,
• Elevated Road Corridor from Park Circus to E.M. Bypass,
Kolkata Contract Value: 3180.000 millions
• Cavern for Crude oil storage, Padur, Karnataka Contract
Value: 3750.000 millions
• POT Shell fabrication works for Aditya Aluminium project,
Orissa Contract Value: 1090.000 millions
• Four-laning of Bahrampore-Farraka section of NH-34 in West
Bengal on Design, Build, Finance, Operate and Transfer Toll basis under
NHDPIII( Package No.NHDP-III/BOT/WB/03)
• Four-laning of Farraka-Raiganj section of NH-34 in West
Bengal on Design, Build, Finance, Operate and Transfer Toll basis under NHDPIII
(Package No.NHDP-III/BOT/WB/04)
• Four-laning of Raiganj-Dalkhola section of NH-34 in West
Bengal on Design, Build, Finance, Operate and Transfer Toll basis under NHDPIII
(Package No.NHDP-III/BOT/WB/05)
• POT Superstructure fabrication works for Aditya Aluminium
project, Orissa Contract Value: 1000.000 millions
• Civil and Piling works for Aditya Aluminium Project,
Orissa Contract Value: 1990.000 millions
• Single Line Tunnel No.1 between Dholakal and Kalmai, Assam
Contract Value: 1180.000 millions
• Reconstruction of Dry Dock at Naval Dockyard, Mumbai
Contract Value: 6080.000 millions
The total balance value of works on hand as on 31.03.2010 is
Rs.188100.000 millions including Company’s share in integrated joint venture
projects and Sawalkot project.
Decisions are awaited from various clients for tenders
submitted by the Company (Directly or in JV) for 24 projects amounting to about
Rs.95200.000 millions. Tenders for various packages for 23 projects worth about
Rs.146300.000 millions are expected to be submitted in the near future. The
Company has also submitted prequalification bids for 11 projects worth over
Rs.61700.000 millions, which are currently under evaluation. The Company is
confident of securing a sizeable share of these new projects.
2009-10: Performance Highlights
Being a leader in
the Indian construction industry that operates across a wide spectrum of
sectors, the performance of Hindustan Construction Company's ('HCC' or 'the
Company') in 2009-10 was also affected by these external exigencies. The financial
highlights of HCC's performance on a stand-alone basis are:
v
Order
Book increased by 14.7% from Rs.164000.000 millions in 2008-09 to Rs.188100.000 millions in
2009-10
v
Revenue from
operations increased by 9.8% from Rs.35180.000 millions in 2008-09 to
Rs.38630.000 millions in 2010
v
EBITDA
(before profits from JV and other income) grew by 2.7% from Rs. 43140.000
millions in 2008-09 to Rs.44290.000 millions in 2009-10
v
PAT
(including profit from JVs and other income) of Rs.8140.000 millions is not
comparable to previous year due to one-time write-offs of Rs.430.000 millions
during 2009-10, and extraordinary gains in the previous year
Given the business
environment discussed in the earlier paragraphs, sluggishness in top-line
growth and lower profits were to be expected. There were some external
uncertainties that also came into play which further affected the Company's
revenue growth and net profits.
One was Andhra
Pradesh. First, there was the sudden death of chief minister Mr. Y.S.R. Reddy,
which created a political vacuum and uncertainty. Then, there were instances of
civil disorder and violence relating to the politics of a separate state of
Telengana. Given the uncertain environment, HCC slowed down execution of its
government projects in Andhra Pradesh. The Company carefully assessed the
situation and focused on cash collections and working capital management. This
had an adverse impact on HCC's revenues for 2009-10.
Subsequently, the
Government of Andhra Pradesh has placed ongoing projects in the state into
three categories,
based on funding and
priority of execution. Most of HCC's projects are in the top two categories. On
the basis of this classification, and in consultation with the state
government, the Company has now got back to its higher project work execution
plan. The proportion of irrigation orders in Andhra Pradesh has reduced
from 26% as on 31st
March, 2009 to 18% as on 31st March, 2010. HCC has also succeeded in getting
payments for work done till January 2010, indicating substantial improvement in
pending receivables, and consequent working capital requirements.
Profit Before Tax
and Profit After Tax in 2009-10 are not comparable with the previous year.
While in 2008-09, there was a one-time profit booked from sale of land, in
2009-10, there were one-time write-offs of Rs. 430.000 millions on account of
Bandra-Worli Sea Link inauguration expenses, political donations, loss on
account of final settlement in Nathpa Jhakhri JV with the client and loss on
sale of assets. If the impact of these extraordinary items is removed, on a
like-to-like basis, financial performance in 2009-10 has improved compared to
2008-09.
Here, it is worth
noting that HCC continued to successfully grow its order book. While increments
in the order book in a given year typically do not raise revenues or profits in
that year, these certainly define the future course of the Company. It is the
growth in, and composition of, the order book which reflect signs of a
paradigm shift in HCC's strategic positioning.
Since 2008-09, EPC
contracts have become a sizable component in the Company's order book. Such
orders\ have continued to grow. Besides, the private sector - including HCC's
own infrastructure JVs - has been a major source of HCC's project order book.
Internationa! Acquisition:
Karl Steiner AG (KSAG)
KSAG, is part of the
HCC has agreed to
acquire a 66% stake by issuance of new shares in consideration for a CHF 35
million cash investment in KSAG. In turn, KSAG will use the funds for its Swiss
operations and growth of the Company's core business in
KSAG's sole owner, Peter
Steiner, will sell his remaining shares to HCC in 2014. Until that time, he
will remain a minority shareholder and fully support HCC's management of KSAG
as Vice-Chairman.
The strategic fit of
this transaction is that it helps HCC to capture the local market opportunity
and. provides the Company with a presence for European expansion. KSAG's rich
expertise in total services contracting will allow HCC to undertake the
development and construction of world-class residential and commercial spaces
on a turnkey basis in
Highlights of the acquisition rationale are:
- Entry into the integrated building
construction market in
- Total solutions capability for a
facility at a single source
- Implementation of new technologies to
support sustainable and green development
- Safe and fast construction processes
- Access to world-class, cutting-edge
European technologies that will augment EPC offerings in
Essentially, HCC is
in a transformation phase. Some of the building blocks it was putting in place
to occupy a wider space in the infrastructure development world have recently
started to generate results. The metamorphosis
from a blue chip
construction contractor to a diversified infrastructure group is under
way. 2009-10 is yet another small step in this direction. While undertaking
this journey, the Company is aware of the challenges and possible pitfalls.
Therefore, it remains disciplined and cautious in its approach. Developments in
the businesses of - Engineering and Construction (E and C), Infrastructure
Development, Integrated Urban Development and Management and Real Estate - are
reported in the next few sections, along with key activities that were
undertaken in the Support Functions.
Engineering and Construction Business
The Company's Order
Book stands at Rs.188100.000 millions as
on 31st March, 2010, against Rs.164000.000 millions on 31st March, 2009. While
broader issues such as developments on the EPC and DBFOT fronts have already
been discussed, there are two other issues that the projects division has
started tackling aggressively. First, HCC is now consciously working on a
strategy for equipment. Given the pace of growth, there is a fine balance that
needs to be created between investing in equipment that support efficient
project delivery and delivering strong returns on the existing base of
equipment by increasing its utilisation. Consequently, machines have been
classified into two groups. One group includes special purpose machines and
equipment that are essential for maintaining quality in construction. These are
machines that HCC will invest in. The other group comprises machines that are
routine and commodity-like in nature. These will be outsourced. The Company is
working on developing quality subcontractors and leasing partners. Second, with
the huge number of projects, HCC's working capital increased significantly.
While some of this is inherent given the business mix, the Company is laying
stress on expediting claims, speeding up dispute resolutions and accelerating
the cash cycle collections. As of 31st March, 2010, HCC was
executing 56 projects. Developments across the different project sectors are
given below.
Power
Power (hydro,
nuclear and thermal) is the largest sector in HCC's projects portfolio. The
Company maintained its
leadership in the
hydro power sector by securing another three contracts in 2009-10. These were
Gosikhurd Hydel Power Scheme in Maharashtra, Pare Hydro-electric Project (HEP)
in Arunachal Pradesh, and Dagachhu HEP (civil works) in
Kishanganga Hydro-electric Project,
This Rs. 27250.000
millions turnkey construction contract is for a 3 x 110 MW hydro-electric power plant.
Work has commenced at site
and will pick up speed in 2010-11.
Chutak
Hydro-electric Power Project,
HCC is constructing the 4 x 11 MW, Rs. 4110.000 millions Chutak
Hydro-electric Project at Kargil in
Nimoo Bazgo
Hydro-electric
Power Project,
The 3 x 1 5 MW Nimoo Bazgo Hydro-electric Power Project worth Rs.
3840.000 millions is under execution in the Leh-Ladakh area. Concrete works are
in progress, and the dam and powerhouse units are about 70% complete.
Uri-ll Hydro-electric Project,
The project involves
civil works for a 4 x 60 MW Uri Hydro-electric Power Plant. At present,
concreting of the dam and powerhouse is nearing completion.
Chamera
Hydro-electric Power Project,
Stage III,
Himachal Pradesh
The Company is
carrying out civil works of this 3 x 77 MW power project. Excavation works are
complete and concreting of tunnels and dam is at an advanced stage.
Teesta Low Dam
HEP - Stage IV,
This Rs. 3960.000
millions project involves civil works for a 4 x 40 MW hydro-electric project. 68%
of concrete work in the power dam has been completed.
Dagachhu Hydro
The Company secured
the EPC contract for this 114 MW hydro power plant valued at Rs. 3880.000
millions from Dagachhu Hydro Power Corporation Limited
Kashang Hydro-electric
Project,
Stage I, Himachal
Pradesh
This Rs.2960.000
millions project by Himachal Pradesh Power Corporation Limited is for
constructing a 3 x 65 MW power plant. Excavation for the river diversion and
underground works are under progress.
Pare Hydro-electric Project, Arunachal
Pradesh
Work has commenced
on this 2 x 55 MW power project for North Eastern Electric Power Corporation
(NEEPCO),
The contract value is Rs.2760.000 millions.
Punatsangchhu-1
Hydro-electric Project,
This Rs.6880.000 millions contract from Punatsangchhu Hydro- electric
Power Authority involves all civil and hydro-mechanical works for the 1,200 MW
hydro-electric power plant. Work has commenced for the powerhouse and tunnels.
Teesta
Hydro-electric Project -
Stage VI,
The Company is executing two packages for Teesta HEP Stage VI for Lanco
Infratech. One package is for an 8.25 km twin head race tunnel. The second
package is for an underground powerhouse and allied underground works. Work on
both the packages is progressing well.
Kudankulam Nuclear
Power Project,
Tamil Nadu
HCC is executing two packages for this 2 x 1,000 MW power project for
Nuclear Power Corporation of India Limited (NPCIL). Package III involves construction
of the reactor and auxiliary buildings for the two units; and package C6
comprises a 2 km long breakwater and intake works. Work on both the packages is
nearing completion.
Transportation
HCC continues to be a crucial player in the transport sector with its
involvement in highway development projects, bridges, tunnels and metres. The
landmark Bandra-Worli Sea Link Project is complete and both the carriageways
are open to traffic. The sea link was awarded the '
The Company has also completed construction of three road projects
during the year . These are (i) the World Bank aided Allahabad Bypass Package
II, (ii) the North-South Corridor Project Package NS2/BOT/AP-8, and (iii) the
Paradip Port Road connectivity project. The second of these, the AP-8 BOT road
project was operational 100 days ahead of schedule. The DMRC's Airport Metro
Express Line packages C1 and C6 are also nearing completion. Some of the major
projects under execution are:
Chennai Bypass,
Tamil Nadu
This Rs.4040.000 millions, 32.5 km four-lane road shall interconnect
three national highways, namely NH-4, NH-5 and NH-45. Phase I of this project
is complete and Phase II is at an advanced stage of completion.
The Company is involved in connecting Bafliaz (Poonch) to Shopian (near
by building an 83 km two-lane asphalt road. With this road,
approximately 550 km of an additional, circuitous commute shall be reduced,
thus improving connectivity in
Construction has commenced on this 96.5 km long DBFOT road for the
four-laning of Maharashtra Border-Dhule Section of NH-3 under NHDP Phase III.
Packages LMNHP-EW
II (WB)-1 to 4,
Uttar Pradesh
Four consecutive packages on the Lucknow-Gorakhpur section of the World
Bank aided Lucknow-Muzaffarpur National Highway Project are under construction.
The work involves four-laning of
a 156 km. stretch by strengthening the
existing two lanes of asphalt pavement and constructing two new lanes of concrete pavement. At present, 124 km four-lane carriageway and
31 km
of service road have been
completed.
Udhampur-Srinagar-Baramulla Railway Line
Project,
An 11 km tunnel on the
Laole-Qazigund section of Udhampur-Srinagar-Baramulla Railway Line Project is
being executed by HCC. The excavation of a 7.1 km tunnel and 5 km of concrete
lining has been completed.
Water Supply and Irrigation
The Company is
executing various water supply and irrigation projects in Maharashtra,
JCR Devadula Lift Irrigation Scheme,
Andhra Pradesh
HCC is involved in
all the three phases of the JCR Devadula Godavari Lift Irrigation Scheme. This
is the second largest scheme of this kind in the world and shall cater to the
irrigation and drinking water requirement of 647,000 acres of land. In the
second phase, trials for the water system in the 38 km pipeline from its intake
to the first Bhimghanpur tank were successfully conducted. In the third phase,
HCC is involved in two packages for three rows of 38 km pipeline and 55 km long
tunnel. Work is proceeding well in both the packages.
IV Mumbai (Middle Vaitarana) Water Supply
Project, Section-ll,
This is a 15.7 km
pipeline project which shall aid Municipal Corporation of Greater Mumbai to
augment Mumbai's water supply by 455 million litres per day. Pipe laying is
nearing completion.
Maroshi Ruparel Tunnel Contract ARFC 2,
The Rs.4150.000
millions project entails constructing a 12.4 km tunnel positioned at a depth of
about 65 metres below the ground level. Tunnel boring on the Vakola- Maroshi
section has been completed, and is in progress in the Vakola-Mahim section.
Lavasa - Integrated Urban Development and
Management
Lavasa is HCC's
ambitious project to develop a complete hill city. From HCC's perspective, this
comprehensive
urban development
and management is a unique attempt at infrastructure development, and the only
private sector development of its kind in
Set amidst seven
hills of the Sahyadri range with a 60 km. lake front, Lavasa is free
The entire city is
being developed with a focus on providing world-class facilities in each of
these domains. It offers a wide range of residential and commercial facilities,
tie-ups with premier national and international education institutions, an
extensive range of tourist activities and family entertainment opportunities,
and several business opportunities across a range of non-polluting industries.
With the soft
inauguration of the city in 2009 and active property sales, Lavasa has started
gaining traction as an independent enterprise. The subsidiary has been
continuously improving its operational performance and has already completed
pre-sales of more than Rs. 11000.000 millions. During 2009-10, there were land
sales worth Rs. 2100.000 millions and built-up space sales of Rs.2650.000
millions.
The financial
highlights during 2009-10 are:
Revenues were
Rs.4820.000 millions
PAT was Rs. 1400.000 millions
In other words, Lavasa
has evolved from a grand vision to a business portfolio that is actively
generating financial
returns. Given its
initial success, HCC has unveiled a new expanded plan for the project. This
envisages
development of
18,000 acres versus the earlier plan of 12,500 acres.
The new plan
involves the development of 157 million square feet over 12 years, of which 100
million square feet will be residential - implying one of the largest real
estate developments of its kind in
As of now, over
Rs.18000.000 millions has been invested and a substantial part of the
infrastructure is in place. Dasve town is under active implementation, while
the master plan for Mugaon is ready and infrastructure is under execution.
Administratively, healthcare, security and banking facilities have commenced at
Dasve.
Information Technology (IT)
Operational for over
four years, the SAP ERP system is now well established within HCC. Besides the
corporate
head office and the
engineering workshop at
system is now
extended to subsidiaries including HCC Infrastructure, HCC Real Estate and
Lavasa Corporation. As a part of the Company's continuous improvement
initiatives, the focus is to now leverage the IT platform to further improve
business processes.
The Company is in
the process of converting most of the documents within the system into digital
form using SAP's 'Document Management System', which is seamlessly integrated
with the base ERP. Nine critical departments within HCC are already operating
on this system.
Having stabilised
the ERP within the Company, HCC has extended the reach of the automated
business practices
to its key suppliers
and vendors. A supplier portal, developed using SAP's SRM software components,
was launched in 2009-10. Many suppliers have already started automated
transactions with HCC.
Since the Company
operates in several remote areas, there is immense scope of improving
efficiency of logistics and supply chain through the implementation of mobility
based IT solutions. HCC has started realising the potential of these systems.
It has already started using GPS technology and GPRS networking for this
purpose. And, applications such as vehicle tracking and time-cycle monitoring
are being deployed.
With the objective to
ensure near real-time updating of material consumption and production data into
SAP for efficient monitoring and decision making, HCC is now in the process of
integrating major equipment data with
SAP. To begin with,
batching plants at five projects have been integrated, and automated data flow
from these
plants to SAP has
started.
All the IT
applications are supported at the back-end by a rugged and scalable
infrastructure comprising state-of-the-art wide area network and a well
connected data centre.
Being envisaged as a
state-of-the-art modern city, IT is extremely crucial to the success of Lavasa.
A Special Purpose Vehicle (SPV) called MyCity Technology Limited (MyCity) has
been formed in partnership with Wipro to support Lavasa in the areas of e-governance,
integrated building management solutions, telecom, WiFi services, city
management solutions and ICT infrastructure. The city network design using
Gigabit Passive Optical Network (GPON) design is now complete. MyCity is in the
process of completing fibre to home and structure
cabling for various
residents and commercial structures at Dasve - the first town being developed
at Lavasa. MyCity has also signed an MoU with Tata Teleservices Maharashtra
Limited (TTML) in January 2010, to provide mobility and non-mobility telecom
services on revenue sharing basis. TTML launched its high speed wireless
Internet services Photon* at Dasve in February 2010.
It was observed that
while the infrastructure sector is rapidly growing in
Management Systems
HCC's business
operations extend to remote project sites spread across different states.
Creating, establishing and developing best-in-class processes and systems
across these sites are fundamental to developing the Company's competitive
strength.
HCC has adopted an
integrated approach towards quality, environment, health and safety and has
incorporated these in business practices. The objective of an integrated
management system (IMS) is to inculcate a culture of continuous improvement
that will enhance quality of the products and maintain the highest standards of
environment protection and safety of the project team to maximize customer
satisfaction. This adheres to the stringent standards stipulated by ISO
9001:2008 for Quality; ISO 14001: 2004 for Environment; and BS OHSAS 18001:2007
for Occupational Health and Safety.
On the safety front,
HCC focuses on creating a culture that continually reduces the frequency of
incidents to achieve the goal of 'Zero Incidents' in a time bound manner. The
Company is also committed to reducing the impact on environment during
execution of projects. To achieve these objectives, engineers at various
functional levels are trained by professional agencies to ensure proper
operation of processes and systems. These trained engineers then act as internal
auditors to conduct regular bi-annual internal IMS audits based on a detailed
schedule.
There were several
IMS-related developments during 2009-2010. During January-February 2010, M/s
TUV NORD, the certifying agency, conducted a surveillance audit for ISO
14001:2004, BS OHSAS 18001:2007 and a certification audit for ISO 9001:2008 to
verify the status of compliance to the requirement of these standards. Three of
the project sites of the Company and most of the functions at corporate office
were subjected to these audits. The auditors recommended continuation of
certification for ISO 14001:2004 and BS OHSAS 18001:2007, and have also issued
a certificate for ISO 9001:2008. These certificates are valid up to March 2011.
During the course of
this audit, the external auditors observed HCC is the only Indian company they
audited which undertook actions to conserve water as a part of corporate social
responsibility under the United Nations CEO Water Mandate.
Corporate Social Responsibility (CSR)
HCC has actively
pursued CSR activities. In the process, CSR has evolved from being passive
philanthropy to corporate-community investments, which take the form of a
social partnership initiative by the Company. At present, HCC is focused on
taking its CSR to the next level, where it becomes an integral part of business
functions, goals and strategy.
The areas that the
Company works on include HIV/ AIDS, disaster response, water and education. There
is a dedicated team, which plans, executes and monitors these programmes, and
each project site has a CSR representative who works with the communities
around the site.
HIV/AIDS has emerged
as a major threat not only to the health system but also to the economy of the
nation. The immediate impact of HIV/AIDS on the businesses is the loss of
working hours and increased cost of production due to sickness of the workers
who require frequent medical care and remain absent from work.
HCC believes that
HIV/AIDS is no longer a social issue but a socio-economic one. Amongst the
groups most affected by HIV/AIDS are migrant workers, sex workers, injected
drug users and truck drivers. In its business operations, HCC engages more than
30,000 migrant labourers and truck drivers who are largely vulnerable and 'at
risk' of acquiring the HIV infection.
HCC has launched
HIV/AIDS Workplace Policy and started the HIV/AIDS Workplace Intervention (WPI)
programmes to educate and raise awareness of HIV/AIDS amongst the workforce,
and enable them to protect themselves and their families by minimizing the risk
of HIV infection. The major thrust of HIV/AIDS WPI programme is on creating an
in-house resource pool by training the master trainers and peer educators. This
programme is then further disseminated amongst the entire workforce by
conducting educational and awareness sessions, condom demonstration, tool box
talk, referring for the testing and STI services, IEC material distribution,
audio-visuals and street plays.
As of March 2010,
some 28,000 workers and employees have been educated and made aware of these
issues.
UNAUDITED
STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010
Rs. In Millions
|
Particulars |
Quarter ended 31.12.2010 (Unaudited) |
Nine Months ended 31.12.2010 (Unaudited) |
|
a) Net Sales / Income from Operations |
10275.093 |
29342.318 |
|
b) Other Operating Income |
-- |
-- |
|
Total Income from Operations |
10275.093 |
29342.318 |
|
Less: Company’s share of turnover in integrated joint venture |
250.378 |
505.674 |
|
Income from operations excluding integrated joint ventures |
10024.717 |
28836.644 |
|
Company’s share of profit (+) / Loss (-) on integrated JV’s (Net) |
61.211 |
48.518 |
|
Total |
10085.928 |
28885.162 |
|
Expenditure |
|
|
|
(a) Consumption of Materials |
3136.962 |
8864.020 |
|
(b) Employees Cost |
1204.819 |
3487.980 |
|
(c) Construction Expenses |
3949.848 |
11723.119 |
|
(d) Depreciation |
381.815 |
1087.160 |
|
(e) Other Expenditure |
474.066 |
1299.450 |
|
(f) Total Item |
9147.510 |
26261.729 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
938.418 |
2823.433 |
|
Other Income |
(56.326) |
35.597 |
|
Profit/(Loss) before Interest and Exceptional items |
882.092 |
2659.030 |
|
Interest |
748.152 |
1996.268 |
|
Profit / (Loss) after interest before Exceptional items |
133.940 |
662.762 |
|
Exceptional Items |
- |
- |
|
Profit / (Loss) From
Ordinary activities before Tax |
133.940 |
662.762 |
|
Tax Expenses |
54.505 |
178.820 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
79.435 |
483.942 |
|
Extraordinary Items |
- |
- |
|
Net Profit/(Loss) for the period |
79.435 |
483.942 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
606.599 |
606.599 |
|
Reserves (Excluding Revaluation Reserves) |
- |
- |
|
Basic EPS |
|
|
|
- before and after extraordinary items |
0.13 |
0.80 |
|
Diluted |
|
|
|
- before and after extraordinary items |
0.12 |
0.75 |
|
Public Share Holding |
|
|
|
- Number of Shares |
364733526 |
364733528 |
|
- Percentage of shareholding |
60.13% |
60.13% |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
Nil |
Nil |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
Nil |
Nil |
|
- Percentage of shares(as a % of the total share capital of the company) |
Nil |
Nil |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
241799394 |
241799394 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100.00% |
100.00% |
|
- Percentage of Share (as a % of the total share capital of the company) |
39.87% |
39.87% |
Notes:
1 The
Company is engaged in Engineering and Construction activities which are
substantially seasonal in Character. Therefore, the financial results for three
months ended 31.12.2010 are not necessarily indicative of annual results.
2 The
Company has a single Segment namely "Engineering and Construction".
Therefore, the Company's business does not fall under different business
segments as defined by AS-17- "Segmental Reporting" issued by CAI.
3 The
total balance value of work on hand as on 31.12.2010 is Rs. 185050.000 millions (Rs. 188100.000 millions as on
31.03.2010).
4 Other
income for the quarter ending 31.12.2010 is net of Exchange loss of Rs. 61.026
millions (Corresponding previous quarter Exchange gain of Rs. 26.170 millions).
5 Tax
expense for the quarter includes Rs. 28.000 millions relating to earlier
quarters.
6 The
Company has allotted bonus shares on 12.08.2010 in the ratio of one equity share
for every one equity share of Rs. 1/- each held in the company on the record
date. The Basic and Diluted EPS has been calculated for all periods presented
after taking into account the bonus issue.
7 The Ministry of Environment and Forests, Government of India,
(MOEF) had issued order on 17.01.2011 to Lavasa Corporation Limited (LCL),
there step down subsidiary, alleging violations of the provisions of
environment (Protection) Act, 1986 and directing LCL to maintain status quo for
construction. LCL's writ petition is pending with Bombay High Court.
8 In
terms of amended Clause 41 of the Listing Agreement, the investor complaints
received, disposed off during the quarter ended 31.12.2010 are as under:
(Nos)
Complaints
pending at the beginning of the quarter
Nil
Complaints
received during the quarter
8
Complaints
disposed during the quarter
5
Complaints
lying unresolved at the end of the quarter 3
9
Previous period figures have been regrouped/recast wherever necessary
10 The
above results have been reviewed by the Statutory Auditors as per clause 41 of
the listing agreement
11 The
above results were reviewed by Audit Committee on 20.01.2011 and were approved
by the Board of Directors at its meeting held on 21.01.2011.
FIXED ASSETS
·
· Buildings and
Sheds
· Plant and
Machinery
· Heavy Vehicles
· Light Vehicles
· Helicopter /
Aircraft
· Speed Boat
· Furniture and
Office Equipments
· Computers
· Intangible Assets
– ERP Software
As per website details:
Profile:
As a pre-eminent Indian infrastructure company, established
over eight decades ago, HCC has, over the years, strongly anchored itself to
In fact, HCC, as an industry leader in engineering
construction, currently nurtures projects that span across such diverse segments
as transportation, power, marine projects, oil and gas pipeline constructions,
irrigation and water supply, utilities and urban infrastructure, all of which
impact the nation of India, and the progress of its people.
HCC, even as you read this, is bringing to bear its wealth
of engineering and construction expertise to develop infrastructure aimed at
further propelling the nation forward, into the 21st century and beyond.
They bring infrastructure alive
The road is long and there responsibility towards development, huge. They, at
HCC, have taken it upon there selves to invest all there energies in ensuring
that the fruits of there labour reach every corner of
They indigenize the latest global technologies to local conditions and terrain
to extract maximum results. And the tangible benefits are being experienced in
various parts of the country.
They specialize in large-scale civil constructions by leveraging new age
construction technologies. For over eight decades, they have been a part of prestigious
projects across a multitude of verticals, creating everything from roads and
bridges to dams and barrages, nuclear power generators and tunnels and metros.
They are proud to have introduced many new construction innovations in
There efforts have gained widespread recognition. HCC is the
first construction company in
HCC is dedicated to sustainable development. Every project and endeavour that
they undertake adheres to stringent corporate stewardship standards, ensuring
that everything that they do has a positive impact on the environment and the
world around them.
PRESS RELEASE
HCC Q3 Turnover up 8.7% to Rs. 10270.000 millions
Mumbai, 21.01.2011:
Financial Results Highlights:
For three months ended 31.12.2010 (Y-o-Y)
– Turnover increased 8.7% to Rs. 10275.000 millions from Rs.
9450.000 millions
– PAT at Rs. 79.000 millions v/s Rs. 147.000 millions
– Operating profit (EBITDA) up 7.4% at Rs. 1259.000 millions
v/s Rs. 1172.000 millions
– Operating margin (EBITDA margin) at 12.6%
– Order book at Rs. 185050.000 millions v/s Rs. 157030.000
millions
For the nine months ended 31.12.2010 (Y-o-Y)
– Turnover increased 5.9% to Rs. 29342.000 millions from Rs.
27713.000 millions
– PAT up 25.8% at Rs. 484.000 millions from Rs. 385.000
millions
– Operating profit (EBITDA) up 15.1% at Rs. 3662.000
millions v/s Rs. 3182.000 millions
– Operating margin (EBITDA margin) at 12.7%
Hindustan Construction Company Limited (HCC) [BSE: 500185;
NSE: HCC] today announced its financial results for the quarter and nine months
ended 31.12.2010.
For the three months ended 31.12.2010, the company
registered a turnover of Rs. 10275.000 millions, up 8.7% against Rs. 9450.000
millions in the corresponding period last year. The company reported PAT of Rs.
79.000 millions. This is net off Foreign Exchange loss of Rs. 61.000 millions
(Rs. 27.000 millions profit during same period last year) and Rs. 28.000
millions of tax liability of earlier quarters. The company achieved EBITDA
margins of 12.6%. EBITDA is up by 7.4% at Rs. 1259.000 millions v/s Rs.
1172.000 millions.
The order book is at Rs. 185050.000 millions as on
31.12.2010. Further, the company is L1 in contracts worth Rs. 15310.000
millions.
For the nine months ended 31.12.2010, the company’s PAT rose
by 25.8% to Rs. 484.000 millions from Rs. 385.000 millions in the corresponding
period last year and turnover rose by 5.9% to Rs. 29342.000 millions from Rs.
27713.000 millions. EBITDA margin was 12.7%. EBITDA registered 15.1% growth at
Rs. 3662.000 millions from Rs. 3182.000 millions
Mr Ajit Gulabchand, Chairman and Managing Director, HCC,
said “During the quarter we have
witnessed a slowdown in infrastructure activity. Several project orders have
been deferred by various government departments and private firms due to delays
in acquiring land and other related clearances. These deferments coupled with
the growing reluctance of investors are some of the factors contributing
towards the slowdown in core sector works.”
He further added “Execution ramp up in new and key projects
like Kishanganga HEP and
Lavasa Corporation (LCL) has stopped construction work since
25.11.2010 complying with the show cause notice along with status quo and
status quo ante.
The Ministry of Environment and Forests (MoEF) final order
dated 17.01.2011 states that MoEF is prepared to consider the project on merits,
subject to terms and conditions while continuing with the status quo.
Quick review of the MoEF order:
- The MoEF
order is based more on State v/s Centre jurisdiction rather than on
environmental issues.
- State
Government had given the environment clearance in 2004.
- No weight or
consideration has been given to the huge body of data submitted by LCL on
environment protection and enhancement initiatives, which included various
lab test reports from MoEF approved labs and the visual evidence shown to
the MoEF technical committee during their site visit.
It is important to note that the Bombay High Court in its
order dated 22.12.2010 has observed that the applicability of the notifications
to which the petitioners have appealed, require to be considered.
HCC Infrastructure (HIL) commenced operation of the
Delhi-Faridabad Elevated Expressway on 30.11.2010, significantly ahead of
schedule. The expressway was inaugurated by Shri Kamal Nath, Smt Sheila Dikshit
and Shri Bhupendra Singh Hooda. Financial closure has been achieved for all the
three
Karl Steiner AG (KSAG), HCC’s Swiss subsidiary achieved a
net profit of CHF 2.9 million in the last quarter with a turnover of CHF 167.8
million. The company is leveraging its expertise to bring world class building
technology to the Indian market.
About
HCC:
HCC is a leading engineering, construction and infrastructure
development company with a rich heritage of experience. The company specializes
in large-scale infrastructure development deploying new age construction
technologies. The Company has managed and executed several technically complex
and high value projects across segments like transportation, hydro and nuclear
power generation, marine, irrigation and water supply projects as well as
integrated urban development and management.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.74 |
|
|
1 |
Rs.72.73 |
|
Euro |
1 |
Rs.62.73 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
69 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.