Hindustan Construction Company (500185) Q3 24/25 earnings summary

Executive summary

• Standalone and consolidated revenues declined year-over-year, with Q3 FY25 standalone turnover at ₹1,002 crore and consolidated revenue at ₹1,006.8 crore, mainly due to divestment and tax regime changes.

• Standalone net loss was ₹216 crore in Q3 FY25 versus net profit of ₹68.5 crore in Q3 FY24, primarily due to exceptional tax items and one-time adjustments.

• Consolidated net loss was ₹38.9 crore in Q3 FY25 compared to net profit of ₹233 crore last year, impacted by deconsolidation and tax changes.

• Completed divestment of Steiner AG to focus on core Indian operations, retaining significant receivables and potential earn-outs.

• Major operational milestones achieved, including completion certificates for Anji Khad Bridge and Mumbai Coastal Road projects.

Financial highlights

• Standalone EBITDA margin improved to 14.7% in Q3 FY25 from 12.3% in Q3 FY24.

• Standalone profit before tax (excluding exceptional items) was ₹18 crore in Q3 FY25 versus ₹21 crore in Q3 FY24.

• Consolidated EBITDA margin turned negative at -3.03% in Q3 FY25 versus 16.19% in Q3 FY24, mainly due to exceptional items.

• Standalone finance cost increased 3.3% year-over-year to ₹138.4 crore.

• Net worth increased to ₹1,680.90 crore standalone and ₹753.34 crore consolidated as of December 31, 2024.

Outlook and guidance

• Order backlog as of December 31 stands at ₹9,773 crore, with additional L1 positions worth ₹3,513 crore and bids submitted for ₹17,679 crore.

• FY25 expected to be flattish in turnover, with growth anticipated from FY26 as new orders are executed.

• Management expects to realize embedded value from subsidiary assets over approximately six years.

• Substantial reduction in finance charges targeted through accelerated deleveraging and claim settlements.

• Focus remains on core Indian operations post divestment of Steiner AG.