Shares of NBCC (India) Limited gained nearly 3 percent and currently trade at Rs 39.10. In the last one month period, the stock has rallied around 15 percent ranging from Rs 33.90 to the current levels.
The company, through a filing with the exchange, informed that it has been awarded work orders from PWD (Puducherry) worth Rs 207.92 crores. The order is pertaining to the provision of comprehensive design, engineering, and project management consultancy (PMC) services.
It also involves planning, designing, and execution of platforms along roads, sewage systems, and providing tertiary treatment plant works for the entity.
NBCC (India) Limited performs its operations in the urban and regional development sectors. Operating segments of the company include Project Management Consultancy, Real Estate Development, and Construction segment. It functions through India and derives a majority of the revenue from the ‘Project Management’ segment.
Having a look at the quarterly numbers reported, the company’s revenues and net profits have shown opposing movements with revenues increasing from Rs 2,030 crores in Q2 to Rs 2,136 crores in Q3 and net profits, on the other hand, going down from Rs 98 crores in Q2 to Rs 71 crores in Q3.
In addition to the above, the profitability metrics of the company showcased declining ratios in recent financial years. The return on equity (ROE) has moved down from 15.52 percent in FY20-21 to 13.95 percent in FY21-22. The return on capital employed (ROCE) also went down from 33.18 percent in FY20-21 to 28.95 percent during FY21-22.
The net profit margins too showed a downward movement and shifted from 3.45 percent in FY20-21 to 3.09 percent in FY21-22.
As per the data for the quarter ending December 2022, promoters hold a constant 61.75 percent stake in the company. FIIs have recently increased their stake in the company from 3.31 percent in Q2 to 3.36 percent in Q3.
Written by Amit Madnani
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