Operating and finance costs push HCC into the red
By Chris Sleight27 April 2012
Hindustan Construction Company (HCC) saw its net loss for the year ending March 31 widen to INR 5.9 billion (US$ 122 million), from a net loss of INR 344 million (US$ 6.5 million) last year. This came despite a +14% increase in revenues for the group to INR 81.6 billion (US$ 1.55 billion).
Rising material and staff costs lowered the company's operating profit, while a +58% rise in interest costs and an exceptional charge of INR 1.59 billion (US$ 30 million) added to these to increase the company's net loss.
The company's revenues were split almost evenly between the core Indian business and HCC's Swiss subsidiary Steiner. But whereas Steiner made a post-tax profit of CHF 2.9 million (US$ 3.2 million) for the year, HCC in India saw a net loss of INR 2.22 billion (US$ 42.3 million).