During Tuesday’s trading session, the shares of India’s second-largest listed construction company by revenue surged 2.7 percent at Rs. 310 on BSE, after the company secured orders worth more than Rs. 2000 crores in the month of September.
With a market capitalisation of Rs. 19,262.3 crores, at 11:27 a.m., the shares of NCC Limited were trading in the green at Rs. 306.8, up by 1.66 percent, as against its previous closing price of Rs. 301.8.
What’s the News:
According to the latest regulatory filings with the stock exchanges, NCC Limited reported receiving orders worth Rs. 2,327 crores in the month of September 2024, with an execution timeframe of 17 to 24 months.
Out of these orders, Rs. 1,417 crores relates to the Transportation Division, Rs. 520 crores to the Electrical Division, and Rs. 390 crores to the Building Division.
These orders were awarded by state government agencies and a private limited company and do not include any internal contracts.
Previous Orders:
As per the regulatory filings, NCC Limited received orders valued at Rs. 335 crores in June 2024, all related to the Building Division. These orders were received from a Private Limited Company, excluding any internal orders.
In the month of August 2024, the company secured orders worth Rs. 1,236 crores, primarily for the irrigation division and other projects. These orders were received from state government agencies and did not include any internal orders.
Financials:
The company reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 26.2 percent, rising from Rs. 4,380 crores in Q1 FY24 to Rs. 5,528 crores in Q1 FY25.
During the same period, the company’s net profit rose from Rs. 184 crores to Rs. 223 crores, representing a growth of 21.2 percent YoY.
As of Q1 FY25, the company’s consolidated order inflow was reported at Rs. 408 crores, with the order book totaling Rs. 52,626 crores.
Within this order book, the Buildings division made the largest contribution at 39 percent, followed by the Electrical (T&D) division at 21 percent, the Transportation division at 18 percent, the Water and Railways division at 12 percent, the Mining division at 8 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 91 percent of returns in one year, as well as around 26.4 percent returns in the last six months. So far in 2024, the shares of NCC have given positive returns of about 84 percent.
About the Company:
NCC Limited is engaged in 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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