HCC shares in focus on two key developments; here is all you need to know

Shares of the company were trading at ₹42.57 apiece on the BSE, down 2.27%.

HCC, in a statement, said this has allowed for SAG subsidiary Steiner Development AG (SDAG) to start afresh as a direct subsidiary of m3 Immobilier, with aspirations to launch a Swiss IPO while also helping HCC realise earnout liquidity of up to ₹205 crore from SDAG's future success.

"In line with HCC's strategy to focus on its core EPC operations and pursuant to a court-approved scheme of arrangement, HCC's stake in Steiner AG (SAG) (held via its wholly owned subsidiaries, HCC Mauritius Investment Limited (HMIL) and HCC Mauritius Enterprises Limited (HMEL)) has been sold to Uniresolv SA, an affiliate of m3 Immobilier Holding SA (m3), a prominent player in Geneva's real estate and finance sectors," it said.

According to the statement, at closing, HCC will also retain ownership of two SAG subsidiaries—Steiner Eagle AG (SEAG) and Steiner India Ltd. (SIL), which hold Rs 1,174 crore of contractual receivables and claims and Rs 43 crore of Indian land assets, the embedded asset value of which the entities expect to realise in five years.

"m3 will work closely with HCC to realise the assets in SEAG, of which HCC will share up to Rs 205 crore with m3," HCC added.

Its vice chairman, Arjun Dhawan, said HCC is proud of its 15-year association with Steiner and its legacy of landmark projects across Switzerland.

"This transaction with m3 reflects a mutual desire to grow our respective core businesses in India and Switzerland, and to maximise long-term shareholder value," Dhawan added.

In a separate development, HCC, in its filing to exchanges on Monday, said that the company had completed a claims settlement with a major client for ₹180 crore, resulting in the reduction of client advances amounting to around ₹130 crore (implying a reduction of annual financing charges of ₹15 crore), with the balance of ₹50 crore being received as cash consideration, thereby boosting liquidity.

HCC Q2 FY25 Results

The company had posted a consolidated net profit of ₹6.38 crore in the year-ago period.

However, the consolidated income of the company during the July-September period declined to ₹1,432.41 crore, from ₹1,870.79 crore a year ago, the filing said.

During the quarter, the company received its project taking over certificate for Delhi Metro's DC06 package and the south-bound arm of the Mumbai Coastal Road Project was inaugurated by the Maharashtra Chief Minister, HCC said in a statement.

HCC said the company has submitted bids worth ₹3,800 crore which are under evaluation while work is underway on a future bid pipeline of ₹46,000 crore.

HCC share price trend

HCC is one of the leading infrastructure players in India. On a year-to-date (YTD) basis, shares of the company have rallied over 55%.