The shares of this PSU company jumps upto 2 percent in Wednesday’s trading session after announcing Q1FY 25 results and receiving Rs. 528 crores procurement order for the university in Haryana. In one year, the stock has delivered more than 250 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 31,455 crores, the shares of NBCC (India) Ltd started Wednesday’s trading session on a higher note at Rs. 175.50 compared to its previous close of Rs. 173.31. During the trading session, the shares hit a high of Rs. 178.90, gaining around 2 percent and are currently trading at Rs. 174 apiece.
What Happened:
Such a positive movement in the share price was observed after the company announced Q1FY25 results. Quarterly, the revenue decreased by 46 percent from Rs. 3,936.98 crores during the March quarter to Rs. 2,118.68 crores in the June quarter. On the other hand, the net profits declined by 24 percent from Rs. 141.5 crores to Rs. 107.19 crores during the same period.
However, on a YoY basis, the revenue jumped by around 11 percent from Rs. 1,913.79 crores during Q1FY24 to Rs. 2,118.68 crores in Q1FY25. In addition, zoomed by 38 percent from Rs. 77.41 crores to Rs. 107.19 crores during the same timeframe.
The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) rose 60.6 percent to Rs. 91.7 crores and the EBITDA margin expanded to 4.3 percent from last year’s 3 percent.
Additionally, the PSU company also received an order worth Rs. 528.21 crore from the Directorate of Medical Education and Research in Haryana.
As per the filing, the company received the order for the procurement of Bio Medical Equipment and Hospital Furniture for Pt. Deen Dayal Upadhayaya University of Health Sciences, Kutail, Karnal. This is the third order that the state-run company has won in the last week.
Recent Development:
Earlier, NBCC secured a Rs. 15,000 crore contract from the Srinagar Development Authority to develop a satellite township. The project will cover 406 acres at Rakh-e-Gund Akshah in Bemina, Srinagar.
In FY23-24, the company secured new business orders worth Rs. 23,500 crores and achieved record-breaking sales, particularly in the commercial real estate sector.
Notably, sales at the World Trade Centre in New Delhi soared to approximately Rs. 6,480 crores, marking an impressive increase of over 208 percent compared to the previous fiscal year.
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Management Guidance:
Looking ahead, the management is aiming for a top-line of Rs. 12,500 crores to Rs. 13,000 crores for the current financial year, with expected EBITDA margins of 5.75 percent to 6 percent and PAT margins of 5.25 percent to 6 percent. The anticipated order inflow is projected to be around Rs.25,000 crores.
Important Financil Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 18.04 percent and a return on capital employed (RoCE) of 27.57 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 3.97 percent.
Company Profile:
Headquartered in New Delhi, NBCC is a Government of India Navratna Enterprise under the Ministry of Housing and Urban Affairs. The company operates in three major segments, Project Management Consultancy, Engineering Procurement and Construction, and Real Estate.
Written By Vaibhav Patil
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