InvestorQ : How did HCC report such a large profit in the March 2020 quarter?
Rutuja Nigam made post

How did HCC report such a large profit in the March 2020 quarter?

Answer
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Arti Chavan answered.
3 months ago


HCC reported net profits of Rs.312 crore for the Mar-20 quarter on a consolidated basis. This compares favourably with a loss of Rs.883 crore reported in Mar-19 quarter. Total sales revenues for the Mar-20 quarter were just about 2% lower at Rs.2377 crore. HCC also boasted of an impressive order book of Rs.16,857 crore as Mar-20.

As of July 2020, all the company's project sites are almost fully functional so normalcy is expected to return in a couple of months from now. For the construction industry, COVID-19 had virtually exacerbated the liquidity crisis. HCC has also undertaken several initiatives to divest assets, monetizing franchises and also a conservative approach to conserve cash.

It may be recollected that HCC has executed many landmark infrastructure projects. These include 27% India's hydropower generation and 60% percent of nuclear power generation capacities. In addition, it has constructed over 3960 lane km of expressways and highways, including the famous Worli Sea Link.