During Wednesday’s trading session, the shares of India’s second-largest listed construction company by revenue surged 2.4 percent at Rs. 280.6 on BSE, after the company announced securing orders worth more than Rs. 340 crores in December 2024.
With a market capitalisation of Rs. 17,507.5 crores, at 10:41 a.m., the shares of NCC Limited were trading in the green at Rs. 278.85, up by 1.8 percent, as against its previous closing price of Rs. 273.95.
What’s the News:
According to the latest regulatory filings with the stock exchanges, NCC Limited reported receiving orders worth Rs. 349.7 crores in the month of December 2024, with an execution time frame of 32 months.
The order is related to the Building Division, received from a Private Company, and does not include any internal order.
Previous Orders:
In October 2024, NCC Limited secured orders worth Rs. 3,496 crores. Of this amount, Rs. 2,694 crores pertains to the Building Division, Rs. 538 crores to the Electrical Division, and Rs. 274 crores to the Water and Other Divisions.
These orders were awarded by state and central government agencies as well as private limited companies, excluding any internal orders.
Additionally, on 29th November, the company received a Letter of Acceptance from the Ken-Betwa Link Project Authority, designating it as the successful bidder for the EPC execution of the Daudhan Dam under the Ken-Betwa Link Project.
The contract, valued at ~Rs. 3,389.5 crores, involves planning, design and engineering, and hydro-mechanical works on an EPC basis.
Financials:
The company reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 10 percent, rising from Rs. 4,720 crores in Q2 FY24 to Rs. 5,196 crores in Q2 FY25.
During the same period, the company’s net profit rose from Rs. 86 crores to Rs. 175 crores, representing a growth of 103.5 percent YoY.
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Order Book
As of Q2 FY25, the company’s order inflow was reported at Rs. 4,760 crores, with the consolidated order book totalling Rs. 52,370 crores. During the same period, NCC Limited executed orders worth Rs. 5,017 crores.
Within this order book, the Buildings division made the largest contribution at 37 percent, followed by the Electrical (T&D) division at 21 percent, the Transportation division at 21 percent, the Water and Railways division at 12 percent, the Mining division at 7 percent, and the Irrigation & Others division at 2 percent.
Management Guidance for FY25
For FY25, NCC Limited expects order inflows in the range of Rs. 20,000 crores to Rs. 22,000 crores, projecting revenue growth of more than 15 percent. Additionally, the company has provided margin guidance, forecasting EBITDA margins between 9.5-10 percent.
Stock Performance
The stock has delivered positive returns of nearly 67.4 percent in one year, while around 13 percent of negative returns in the last six months. The shares of NCC have given negative returns of about 10 percent in the last one month.
About the Company
NCC Limited is engaged in the business of the infrastructure sector, primarily in the construction of industrial, institutional, hospital, hospitality and commercial buildings, airports, housing & transportation projects including roads, bridges, metros & tunnels, railway projects, electrical distribution, transmission lines and smart meter projects, mining projects, and more.
Written by Shivani Singh
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