Hindustan Construction (HCC) reported strong turnover growth of 38% YoY. EBITDA improved by 43% YoY, on the back of rising margins. However, the rise in interest costs by 133% YoY resulted in adjusted PAT declining by 3% YoY to Rs213 mn.
HCC’s EBITDA margins have improved YoY by 40 bps and QoQ by 170 bps. Management has indicated that since HCC is no longer booking losses in Bandra-Worli Sea Link project, EBITDA margins will be on an improving trend.
Sales of apartments at Lavasa during October 2007 have clocked Rs3.21 bn. The management indicated that discussions are continuing for a possible private equity deal in Lavasa. Regarding the disputed Sawalkote hydropower project order of Rs19.4 bn, it is expected be settled by a favourable court verdict by the end of February 2008.