Hindustan Construction Company (HCC) has recorded a net loss of Rs. 40.5 crore in the second quarter of 2011 on a year-on year basis mainly due to increase in interest rates and delay in award of fresh orders form clients.

The construction giant’s total incomes also declined by 7% to Rs. 838 crore from Rs. 899 crore in the same period of 2010. The company’s order book now stands at Rs. 16,175 crore without considering two L1 contracts amounting to Rs. 2,077 crore. The total revenue of the company decreased 6.32 per cent to Rs 825.58 crore from Rs 884.56 crore.

"The slowdown in the process of decision making in awarding of contracts along with rising inflation and increase in interest costs is reflecting in this quarter's financial performance," HCC Chairman and Managing Director Ajit Gulabchand said.

He added that the delay in the decision making process related to the award of new orders has resulted in almost 36 per cent fall in orders compared to the last year. He also observed that the industry has seen a fall in new orders due to the economic slowdown. He pointed out that there has been a slowing down on order intake as well as on the project execution by the companies.