Hindustan Construction Company (HCC) is planning to maintain a growth rate of 10% this year, despite of slowdown being faced by the infrastructure sector. The biggest challenge of the company in achieving the growth would be the high interest cost.
Due to lack of decision-making and environmental hurdles the infrastructure space has seen a slowdown due to which almost Rs 1,000 crore has been locked in claims. As on March 2011, the company's order back-log stood at Rs 18,127 crore.
The company’s net profit for the quarter ended March 31, 2011 has decline by 47.38% at Rs 22.61 crore as compared to Rs 42.97 crore for the quarter ended March 31, 2010. Its total income from operation has increased by 10.71% at Rs 1208.74 crore for the quarter under review from Rs 1091.71 crore for the corresponding quarter of the previous year.
The company has registered fall of 12.84% in its net profit for the year ended March 31, 2011 at Rs 71.00 crore as compared to Rs 81.46 crore for the year ended March 31, 2010. Its total income has increased by 7.27% at Rs 4143.97 crore for the year ended March 31, 2011 from Rs 3862.97 crore for the year ended March 31, 2010.