Hindustan Construction trades 5% lower after weak Q4 results.

Hindustan Construction Company’s shares sank over 5% to ₹38.30 on Monday as investors reacted to the company’s financial results for the fourth quarter of the fiscal year. The company said on Friday its consolidated revenue during the quarter declined by 26.91% YoY to ₹1,773 crore even as it saw a 22% year-on-year (YoY) growth in its net profit to ₹246.2 crore.

The company’s operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at a negative of ₹117.5 crore compared to a positive EBITDA of ₹325.1 crore in the corresponding period last year.

For the financial year ended March 31, 2024, the company reported a net profit of ₹529.4 crore compared to a loss of ₹52.5 crore last year. The consolidated revenue during the quarter declined 15.3% YoY to ₹7,006.7 crore. However, the company’s EBITDA during the year rose by 22.4% YoY to ₹671.2 crore. The EBITDA margin in FY24 stood at 9.6% compared to 6.6% last year.

The company has an order backlog with its value amounting to ₹10,475 crore. The transport segment makes up 48% of the company’s order backlog. Hydro and water segment projects contribute 26% and 20% to the order backlog, respectively. Nuclear segment projects make up 6% of the order backlog.

The company said that it is the lowest bidder for projects worth ₹4,500 crore. For the company’s future growth, a bid pipeline of ₹46,440 crore has been identified. The company also reported that its rights issue worth ₹350 crore has been oversubscribed 2.5 times. Shares of the company have risen by nearly 38% since the beginning of the year. The stock has gained over 123% in the last one year.

Hindustan Construction’s key business lines are transport (49% of revenues), hydro power (27%) and water supply, sanitation and irrigation (18%).