The shares of this navratna company jumped 2.7 percent after the company bagged prestigious work orders for EPC work worth Rs 489 crores.
With a market capitalization of Rs 27,321.30 crore, the shares of NBCC (India) Ltd were trading at Rs 101.13 per share, increasing around 1.88 percent as compared to the previous closing price of Rs 99.26 apiece.
Reason for Rise:-
Today, the shares of the company have seen positive movement after NBCC (India) Ltd received significant work orders for EPC projects of Rs 489 crores. The first order is for Rs 30 crore from the Pt. Deen Dayal Upadhyaya National Institute for Persons with Physical Disabilities (PDUNIPPD) in New Delhi, while the second is for Rs 459.60 crore from the Department of Tribal and Scheduled Caste in Chhattisgarh.
Financial Performance:-
Looking forward to the company’s financial performance, revenue increased by 19 percent from Rs 2,059 crore in Q2FY24 to Rs 2,459 crore in Q2Y25. During the same period, net profit increased by 52 percent, from Rs 82 crore to Rs 125 crore.
Recent Development:-
The Haryana Directorate of Medical Education and Research ordered Rs. 528.21 crore from the PSU company. The document indicates that the company received an order for Bio-Medical Equipment and Hospital Furniture from Pt. Deen Dayal Upadhayaya University of Health Sciences in Kutail, Karnal.
NBCC previously obtained a Rs. 15,000 crore contract from the Srinagar Development Authority to create a satellite township. The project would cover 406 acres near Rakh-e-Gund Akshah in Bemina, Srinagar. In FY23-24, the company obtained new business orders of Rs. 23,500 crores and earned record revenues, particularly in the commercial real estate sector.
Management Comment:-
The management expects a top-line of Rs. 12,500 crores to Rs. 13,000 crores for the current fiscal year, with EBITDA margins of 5.75 percent to 6% and PAT margins of 5.25 percent to 6%. The firm plans to grow into overseas areas, including Fiji, Maribor, the Philippines, Dubai, and Kuwait.
Project Execution and Development:-
The Nauroji Nagar and Sarojini Nagar redevelopment projects are progressing, with Nauroji Nagar nearing completion. Sarojini Nagar’s first phase, valued at ₹1,450 crore, is underway. Plans include handing over 1,738 quarters by September 2024 and 10,000 flats in the Amrapali project by March 2025.
Future Outlook:-
Management is optimistic about sustained revenue growth, supported by a strong order book and ongoing projects. Plans include diversifying through acquisitions of underperforming public sector units with valuable land assets. Additional revenue growth is expected from new real estate projects and government contracts.
Company Snapshot:-
NBCC (India) Limited is an India-based company that provides value-added services. The company operates three business segments: project management consultancy (PMC), real estate development, and engineering procurement and construction (EPC).
Written by:- Abhishek Singh
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