Operating and finance costs push HCC into the red

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).