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HCC posts Rs 1525-cr loss for Q2 due to write offs

twitter-logoPTI | November 1, 2018 | Updated 20:42 IST

New Delhi, Nov 1 (PTI) Hindustan Construction Company (HCC) Ltd Thursday posted a loss of Rs 1,525.23 crore for the July-September quarter, hit by exceptional write offs related to its group firm Lavasa Corporation which is under insolvency proceedings. The company had posted a profit of Rs 11.60 crore during the same quarter a year ago, the company said in BSE filing. Its total income fell to Rs 994.40 crore in July-September 2018-19 from Rs 1,031.93 crore in July-September of 2017-18 fiscal. The company provided for an exceptional loss of Rs 2,011.13 crore related to write offs of its investment in group firms HCC Real Estate Limited (HREL) and Lavasa Corporation Ltd (LCL), the filing said. HREL held 68.7 per cent stake in LCL. The exceptional loss also includes liabilities aggregating Rs 745.94 crore taken over by HCC pursuant to settlement agreements with the lenders of LCL, the filing said. "HCC has written off its entire investment of Rs 1,046 crore in Lavasa Corporation Ltd (LCL) as a matter of prudence pursuant to the admission of LCL into NCLT under IBC," the company said. HCC has fully accounted for all of its contingent liability obligations given to Lavasa lenders, including Corporate Guarantees and Put options, it said. "A substantial majority of these obligations amounting to Rs 943 crore have been restructured for Rs 514 crore at benign, non-cash interest rates, repayable at the end of March 2023, thereby resulting in immediate savings to the company," the company said. HCC expects no further impact on account of its erstwhile subsidiary, it clarified. Shares of the company Thursday ended 3.98 per cent up at Rs 12.79 apiece on the BSE. PTI ABI SHW MR MR

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