Hindustan Construction Company (HCC) shares fell 5% in morning trade after the company reported disappointing Q3 FY25 results. Standalone revenue from the engineering and construction (E&C) segment dropped to ₹1,002 crore from ₹1,244 crore in Q3 FY24. However, EBITDA margin improved to 14.7% from 12.3%, reflecting better cost control.
HCC posted a standalone net loss of ₹216 crore, a sharp decline from a net profit of ₹68.5 crore last year. The company attributed this to tax-related adjustments under the new tax regime, including a deferred tax asset reversal of ₹147.06 crore and a ₹154.16 crore write-off in unutilized MAT credit.
On a consolidated basis, revenue dropped significantly to ₹1,006.8 crore from ₹1,474.5 crore due to the divestment of its international subsidiary, Steiner AG. The consolidated net loss stood at ₹38.9 crore, compared to a profit of ₹233 crore in Q3 FY24.
Despite weak earnings, HCC strengthened its order book. It secured a ₹1,032 crore Letter of Award (LOA) for the Agardanda Creek Bridge project and emerged as the lowest bidder in projects worth ₹3,513 crore. Additionally, the company submitted bids worth ₹17,679 crore across multiple infrastructure sectors.
HCC also raised ₹600 crore through a Qualified Institutional Placement (QIP) and is actively working on tenders worth ₹36,000 crore. With a strategic focus on Indian operations post-Steiner AG exit, HCC aims for long-term growth despite near-term challenges.
HCC shares opened at ₹26.55 today, touching a high of ₹27.40 before falling back to ₹26.55, marking a 52-week low. This is a sharp decline from its 52-week high of ₹57.50.
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