HCC reports Rs 1,525 cr loss in July-September on impairment charge for Lavasa Corp; total income falls to Rs 994.40 cr

HCC approved a rights issue of up to Rs 500 crore to strengthen company’s financial profile and to refocus its efforts on its core construction and engineering business New Delhi: Hindustan Construction Company Ltd Thursday posted a loss of Rs 1,525.23 crore for the July-September quarter, hit by an exceptional loss of Rs 2,011.13 crore due to impairment charges related to Lavasa Corporation. “HCC has written off its entire investment of Rs 1,046 crore in Lavasa Corporation as a matter of prudence pursuant to the admission of its 68.7 percent owned subsidiary into NCLT under IBC,” HCC said in a statement. Having comprehensively accounted for its entire exposure to Lavasa, HCC expects no further impact on account of its erstwhile subsidiary.” HCC’s Board of Directors also approved a rights issue of up to Rs 500 crore to strengthen the company’s financial profile and to refocus its efforts on its core engineering and construction business. Arjun Dhawan, Director and Group Chief Executive Officer said, “It was a busy quarter which we sold a material BOT asset, ring-fenced HCC from the potentially adverse consequences of Lavasa’s insolvency, kick-started our rights issue process, drew down our fresh operational bank guarantee limits, further deleveraged, and won a marquee contract.” The company’s gross debt reduced to Rs 3,616 crore as of September 30, 2018, from Rs.4,072 crore as on September 30, 2017.