Hindustan Construction Company Limited : HCC Q3 FY 11-12 Turnover at Rs 949.2 Crore

Press Release HCC Q3 FY 11-12 Turnover at Rs 949.2 Crore Operating Profit at Rs112Crore Mumbai, January 20, 2012: Hindustan Construction Company Limited (HCC) [BSE: 500185; NSE: HCC] today announced its unaudited financial results for the quarter ended December 31, 2011.

Key Pointers:

HCC Ltd: For three months ended December 31, 2011 (Y-o-Y)

• Turnover of Rs 949.2 Crore compared to Rs 1,027.5 Crore

• Net loss ofRs 130.4 Crore

• Operating profit (EBITDA) at Rs 112 Crore v/s Rs 126Crore

• Operating margin (EBITDA margin) at 11.8 %

• Order backlog is at Rs16,240Crore and L1 on one contract worth Rs 1,574 Crore

HCC subsidiaries

• HCC Concessions receives NHAI clearance for commissioning of Dhule-Palesnertoll road and operations are expected to commence in February, four months ahead of schedule

• Steiner AG revenue at CHF 512.8 million (Rs2,790.7 Crore)with a net profit of CHF 2.37 million(Rs12.9 Crore)for the nine months period completed on December 31, 2011

• Steiner AG order backlog is at CHF 1.47 billion (Rs8,014 Crore)and contracts worth CHF 330 million (Rs1,799Crore) are pending signing of agreement

• Lavasa receives clearance from MoEF for the first phase and construction resumes

HCC has made provision of Rs166.3Croreas exceptional items due to i) Expected future losses in two recently awarded projects, ii) Cost revision in few projects iii) expected loss on sale of assets iv) Losses due to exchange fluctuations v) Provision for encashment of guarantee (wrongful encashment).

MrAjitGulabchand, Chairman and Managing Director said, "The financial performance reflects the difficult economic and business environment. The revenue growth was lower due to slow order booking during the last four quarters, execution bottlenecks, rising interest costand payment delays by clients. In this challenging environment, we are focused on the judicious use of capital and improving collections / claims and reduction in cost. Initiatives targeted in these areas have already resulted in improvement. Our growth strategy continuesto focuson winninglarge infrastructure projectsin both the public and private sector." Performance of HCC's subsidiaries: HCC Concessions Ltd

The company has received NHAI's clearance for commencement of toll operationsonthe
DhulePalesner Highway located atthe Maharashtra-MPborder. Operations are expected to commence
in February, four months ahead of schedule. The company has incorporated a subsidiary company, HCC Power Ltd which will evaluate development opportunities in the hydro and renewable energy space.

Steiner AG

In the nine month period ended December 2011, Steiner AG's revenue was CHF 512.8 million (Rs2790.7 Crore) with a net profit of CHF 2.37 million(Rs12.9 Crore). The company has a strong liquidity position with an order backlog of CHF 1.47 billion(Rs8,014 Crore). In addition to this, the company has secured orders for over CHF 330 million(Rs1,799 Crore), where the contracts are yet to be signed.

Lavasa Corporation Ltd

Ministry of Environment & Forests (MoEF), Government of India, vide its order dated 9th November,
2011 accorded environment clearance (EC) to the 1st Phase of Lavasa. Construction has resumed at the Project site and the company is in the process of getting the project site fully mobilised.

About HCC:

HCC is a business group of global scale developing and building responsible infrastructure through next practices. With a group turnover of Rs 7,153 Crore, its businesses span the sectors of Engineering & Construction, Real Estate, Infrastructure and Concessions, Urban development & Management. HCC has executed a majority of India's landmark infrastructure projects, having constructed over 25% of India's hydro- power and over 50% of India's nuclear power generation capacities, 2,300 km of roads and expressways, and over 170 km of complex tunneling in addition to hundreds of bridges, dams and barrages. Recent projects include the Bandra Worli Sea Link and India's largest nuclear power plant at Kudankulam. At present HCC's concession assets under management exceed 5,500 Crore. The group is developing Lavasa city, India's largest urban development across 23,000 acres, approximately 1/4th the size of Mumbai. HCC is headquartered in Mumbai

and is listed on the BSE and NSE. The HCC group of companies includes HCC Ltd, HCC Infrastructure Co Ltd, HCC Real Estate Ltd, Lavasa Corporation Ltd and Steiner AG. For more information, please visit www.hccindia.com.

For further information:

Sandeep Sawant
Hindustan Construction Company Ltd
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Parikshit Joshi
Adfactors PR
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