Hindustan Construction Company Limited — PPTs, 08-05-2025: Investor Presentation

1. Financial Highlights:

Hindustan Construction Company (HCC) reported standalone revenue of ₹4,801 Cr for FY25, down 4.8% YoY, with PAT at ₹84.9 Cr, declining 52.4%. EBITDA margin improved sharply to 19.4% from 13.6%, driven by better cost control. Consolidated revenue fell 20% YoY to ₹5,603 Cr, with PAT down nearly 79% at ₹112.6 Cr. Q4 standalone turnover was ₹1,330 Cr (-6.9% YoY), posting a strong 31% EBITDA margin, while consolidated Q4 revenue dropped 22.5%. Finance costs decreased over 20%, supporting margin gains. The order book stands robust at ₹11,852 Cr, excluding L1 bids of ₹3,513 Cr.

2. Strategic Initiatives & Growth Drivers:

HCC continues to focus on nuclear, hydro power, and transport infrastructure. Key projects like Rajasthan Atomic Power Units, Anji Khad Cable Stay Bridge, and Mumbai Coastal Road were completed during the year. The tunneling and metro segments advanced with milestones at Tehri PSP and Mumbai Metro Line 3. A rights issue and QIP raised ₹950 Cr, enhancing financial flexibility to pursue a bidding pipeline worth ₹30,950 Cr.

3. Business Developments:

The company secured new contracts worth ₹5,693 Cr (HCC share ₹3,471 Cr) via JVs and emerged lowest bidder in tenders totaling ₹3,966 Cr. Settlement of long-pending claims is in progress, expected to improve near-term cash flows and margins. Project completions include strategic infrastructure supporting India’s energy and transport sectors.

4. Market Position & Competitive Advantage:

HCC holds leadership in nuclear and hydro power, controlling about 60% of India’s installed nuclear capacity and 50% of hydro capacity under construction. Its diversified order book, large scale, and expertise in complex civil works form a strong moat. The recent credit rating upgrade to BBB- stable enhances market and lender confidence.

5. Investor Implications:

Expansion in EBITDA margins and improved liquidity from capital raising and claim settlements indicate positive growth potential despite revenue softness. Execution risk remains on project ramp-ups and final claim resolutions. The healthy order book and active bidding pipeline provide solid medium-term revenue visibility. Financial discipline and deleveraging reduce overall risk. Investors should watch execution progress and margin trends closely.