During Friday’s trading session, the shares of one of the largest realty CPSEs in India with operations in project management consultancy and development are in focus after receiving two different infrastructure projects worth a total of around Rs. 298.77 crores from Oil India Limited and others.
With a market cap of Rs. 25,650 crores, the shares of NBCC (India) Limited hit an intraday high at Rs. 97.98, up by nearly 1 percent, compared to its previous closing price of Rs. 97.11.
What’s the news:
According to the latest regulatory filings with the stock exchanges, NBCC (India) Limited secured orders amounting to around Rs. 298.77 crores from Oil India Limited and other clients.
The first order, valued at ~Rs. 98.2 crores, was secured by HSCC (India) Limited, a wholly-owned subsidiary of NBCC, from the Directorate of Medical Education Research (DMER), Mumbai, Maharashtra.
This project involves setting up an E-Library as a Unified Platform for the students and faculty across 22 Government Medical Colleges and 3 Dental Colleges under the Medical Education Department, Maharashtra.
The second order worth Rs. 200.6 crores, was awarded to NBCC by Oil India Limited in Duliajan, Assam, for the construction of the New OIL Hospital in Duliajan on a turnkey basis under Depository Works mode.
Previous Order:
In an earlier update dated 16th December, NBCC announced securing work orders worth Rs. 489.6 crores from multiple clients.
Of these, a significant order of Rs. 459.6 crores was received from the Department of Tribal and Scheduled Caste, Chhattisgarh, for constructing Eklavya Model Residential Schools at different locations in the state.
The second order, valued at Rs. 30 crores, was from the Pt. Deen Dayal Upadhyaya National Institute for Persons with Physical Disabilities (PDUNIPPD), New Delhi, for building the Permanent Building of Composite Regional Centre (CRC) at Jamdoli, Agra Road, Jaipur.
Financials:
The company reported a marginal growth in revenue from operations, experiencing a year-on-year increase of nearly 19.4 percent, rising from Rs. 2,059 crores in Q2 FY24 to Rs. 2,459 crores in Q2 FY25.
Likewise, during the same period, the company’s net profit increased from Rs. 82 crores to Rs. 125 crores, representing a significant growth of around 52.4 percent YoY.
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Order Book:
As of Q2 FY25, the company’s consolidated order book exceeded Rs. 84,400 crores. Of this total, NBCC contributed Rs. 70,400 crore, HSCC accounted for Rs. 8,000 crore, HSCL secured Rs. 5,800 crore, and NSL added Rs. 200 crore.
The management expects the order book to grow to Rs. 1 lakh crores by the end of the year, fueled by ongoing projects and new orders.
Management Guidance & Future Outlook:
The management expects a top-line of Rs. 12,500 crores to Rs. 13,000 crores for FY25, with anticipated EBITDA margins of 5.5-6 percent and PAT margins between 5.25-6 percent over the next 2-3 years. Additionally, NBCC plans to grow into overseas areas, including Fiji, Maribor, the Philippines, Dubai, and Kuwait.
The management is optimistic about maintaining strong revenue growth, which is expected to be driven by a robust order book and ongoing project execution. The company also plans to diversify and acquire underperforming public sector units that possess significant land assets.
Further, the revenue growth is anticipated from new real estate projects and government contracts.
Stock Performance:
The stock has delivered positive returns of nearly 89 percent in one year, while around 13 percent of negative returns in the last six months. So far in 2024, the shares of NBCC have given positive returns of about 74 percent.
About the company:
Incorporated in 1960, NBCC (India) Limited, one of the largest realty CPSEs in India, is a Navratna Enterprise under the Ministry of Housing and Urban Affairs, operating in three major segments: Project Management Consultancy (PMC), Real Estate and Engineering Procurement & Construction (EPC).
Written by Shivani Singh
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