NBCC Q2 Results: Net Profit Rises 53% To Rs 125 Crore

NBCC (India) Ltd., formerly known as National Buildings Construction Corporation, reported a 53% year-on-year rise in net profit for the second quarter of this financial year.

The public sector firm recorded a consolidated net profit of Rs 125.13 crore for the quarter ended September, compared to Rs 81.9 crore in the same quarter of the previous fiscal year, according to its stock exchange notification.

Revenue increased by 19.4% year-on-year for the three months ended September, reaching Rs 2,458.73 crore. Analysts had projected revenue of Rs 2,533 crore.

Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 5% year-on-year to Rs 99.9 crore. The Ebitda margin expanded to 4.1% from 4.6% in the same period the previous year. Analyst estimates for Ebitda and Ebitda margin tracked by Bloomberg were Rs 138 crore and 5.4%, respectively.

NBCC, earlier this month, secured new work orders worth Rs 448.74 crore. The order includes several high-value projects across various locations.

The largest contract within this order tranche involves constructing the Pratyaksha Kar Bhawan office building, along with a residential complex, at Kheora Bangar, Kanpur, Uttar Pradesh. This project, valued at Rs 262.74 crore, is intended for the Principal Chief Commissioner of Income Tax, Uttar Pradesh (West) and Uttarakhand, and will include Type-II, III, and IV residential quarters as well as an MSTU setup to support the tax department’s operations.

Shares of NBCC was trading lower on Wednesday. The shares fell as much as 5.5% during the day to Rs 88.32 apiece on the NSE. It closed 4.24% lower at Rs 89.5 apiece on the NSE, compared to a 1.18% decline in the Nifty 50 Index. It has risen by 97.34% in the last 12 months and by 64.28% year-to-date.

Out of four analysts tracking the company, one maintains a 'buy' rating, one recommends a 'hold,' and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 45.7%.