Consolidated Construction Consortium Limited (CCCL) has reported a significant profit of Rs 4,878.65 crore for the quarter ended September 30, primarily driven by an exceptional gain from the sale of its wholly-owned subsidiary. The company's financial performance for Q2 showcases a remarkable turnaround, largely attributed to strategic divestment.

Key Financial Highlights

• Revenue from Operations: Rs 5,544.27 crore
• Net Profit: Rs 4,878.65 crore
• Exceptional Gain: Rs 9,578.35 crore from subsidiary sale

Subsidiary Sale: A Game-Changing Move

The company completed the sale of its wholly-owned subsidiary, CCCL Infrastructure Limited, to DPF Textiles Pvt Ltd for a total consideration of Rs 22,500 crore. This strategic move resulted in an exceptional gain of Rs 9,578.35 crore, significantly boosting the company's bottom line.

Operational Performance

Despite the substantial profit, it's important to note that the company's core operational performance shows room for improvement. The profit is largely attributed to the one-time gain from the subsidiary sale rather than operational efficiency.

Financial Position

Order Book

CCCL reported a robust order book with work on hand valued at Rs 51,658.47 crore as of September 30, indicating a strong pipeline of future projects.

Auditor's Observations

The company's auditors, ASA & Associates LLP, have raised certain qualifications in their limited review report:

1. Non-receipt of balance confirmations from various parties
2. Insufficient evidence for identification of micro and small enterprises
3. Non-provision of interest on dues to micro and small enterprises
4. Non-estimation of interest and penalties on delayed statutory payments

Management's Response

The company management has acknowledged these issues and stated that they are working on addressing them. They believe that no material adjustments would be required upon receipt of balance confirmations.

Future Outlook

While the substantial profit from the subsidiary sale has strengthened CCCL's financial position, the company's focus will likely shift towards improving its core operational performance and addressing the concerns raised by the auditors. The strong order book suggests potential for future growth, but efficient execution will be crucial for sustained profitability.

Investors and stakeholders should closely monitor the company's operational performance in the coming quarters to assess its ability to generate profits from its core construction and infrastructure services business.

Note: All figures are based on the standalone financial results of Consolidated Construction Consortium Limited for the quarter ended September 30.

Consolidated Construction Consortium Limited (CCCL) has announced a significant boost to its order book, securing new contracts worth ₹1,803.00 crore from its Buildings & Factories (B&F) Division. The company disclosed this substantial order intake, representing fresh business opportunities for the construction firm.

Order Details

The orders, secured between July 12 and September 11, have significantly bolstered CCCL's order backlog. As of the announcement date, the company's order book stands at an impressive ₹6,522.00 crore.

Company Overview

Consolidated Construction Consortium Limited was founded by two first-generation entrepreneurs, Mr. R. Sarabeswaran and Mr. S. Sivaramakrishnan, both former L&T engineers. Since its inception in 1997, CCCL has established itself as a prominent player in the construction engineering sector.

Project Portfolio

Over the years, CCCL has successfully completed 950 projects, including:

• 284 Industrial projects
• 425 Commercial projects
• 241 projects in other sectors

These projects span across 21 states and Union Territories in India, showcasing the company's wide-reaching capabilities and expertise.

Scale of Operations

The aggregate built-up area of CCCL's projects exceeds 130 million square feet, demonstrating the company's capacity to handle large-scale construction endeavors.

Market Impact

This substantial order inflow is likely to have a positive impact on CCCL's financial outlook and market position. The diverse nature of the B&F Division's projects suggests that the company continues to find opportunities across various segments of the construction sector.

The announcement of these new orders reflects positively on the current state of the construction industry and indicates a healthy demand for CCCL's services. Investors and market watchers may view this development as a sign of the company's strong market presence and its ability to secure significant contracts in a competitive landscape.

As CCCL moves forward with these new projects, it will be interesting to observe how this order intake translates into revenue growth and profitability in the coming quarters.