- Fears on Telangana Issue have become a reality and now companies in Andhra Pradesh are really facing problems shown by results so far. HCC has come out with results for Q3FY10 and HCC reported 10% growth in revenue at Rs900Cr for Q3FY10, which was below many estimates, largely due to slow execution of projects in Andhra Pradesh.
- HCC witnessed slower execution during the quarter as it lost about Rs100Cr during the last couple of months due to turbulence in the state of Andhra Pradesh leading to payment issues. Currently, the total outstanding receivables from AP are Rs600Cr, out of which Rs260Cr is for the last three months.
- NAGARJUNA CONST, IVRCL INFRA and many other companies from AP are still to come out with results and they may have faced similar problems like HCC.
- Technically IVRCL INFRA is looking very weak as the stock has broken support near Rs 330 and now the stock trades below all major moving averages, the stock may find support near Rs 270 or Rs 240 if the downtrend persists.
IVRCL looks bearish http://akprabhakar.blogspot.com/2009/12/ivrcl-infra-looks-bearish-avoid.html
Telangana haunts Realty and Infra http://akprabhakar.blogspot.com/2009/12/telangana-issue-haunts-infra-and-realty.html
