NCC Secures ₹8,398 Crore Worth of Contracts in August
Hyderabad-based infrastructure firm NCC, formerly known as Nagarjuna Construction Company, is riding high on its recent contract wins. On September 1, the company announced it had secured four lucrative contracts in the month of August, totaling a staggering ₹8,398 crore. This announcement sent NCC share price soaring by 2% in morning trade. In a regulatory filing NCC revealed that its electrical division had secured four contracts for executing electrical metering and distribution projects. Let's break down these significant contracts:
1. Maharashtra State Electricity Distribution Corporation - ₹5,755 Crore
NCC bagged two substantial orders, worth ₹5,755 crore, from the Maharashtra State Electricity Distribution Corporation. These contracts pertain to advanced metering infrastructure projects and are set to be executed on a 'design, build, finance, own, operate, transfer' (DBFOOT) basis. The total duration of these orders is nine years and three months, with seven years allocated for operation and maintenance through Special Purpose Vehicles (SPVs).
2. North Bihar Power Distribution Corporation - ₹2,324 Crore
The North Bihar Power Distribution Corporation awarded NCC a contract worth ₹2,324 crore for an advanced metering infrastructure project. NCC is expected to execute this order itself, with a duration of nine years and three months.
3. Bangalore Electricity Supply Company - ₹319 Crore
NCC secured a contract worth ₹319 crore from the Bangalore Electricity Supply Company for the upgradation of its distribution automation system. This project is slated to last for 18 months.
Impressive Order Inflow and Financial Performance
NCC's winning streak extends beyond August. The company has been consistently securing significant contracts, with a total order inflow projection for FY24 at an impressive ₹26,000 crore. Additionally, NCC posted a consolidated net profit of Rs 173.54 crore for the quarter ending June 30, 2023, reflecting a remarkable 33.9% increase year-on-year. This surge in profitability is attributed to higher execution during the quarter.
The company's revenue from operations also saw a substantial boost, rising by 31.9 percent to ₹4,380.39 crore during the same quarter. These impressive financial results can be attributed to NCC's record-breaking order wins during the previous fiscal year, with a total order book of ₹50,244 crore as of the end of 2022-23.
NCC's order book continues to grow, reaching a staggering ₹54,110 crore as of June 30, 2023. Government-funded projects, both at the central and state levels, account for more than 80% of NCC's order book, highlighting its strong position in the market. During the quarter ended June 30, 2023, NCC reported an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of approximately ₹409.21 crore, with an EBITDA margin of around 9.3%.
NCC Stock Surges with Remarkable Gains in Past Year
Investors in NCC Limited have seen a spectacular rise in the company's stock value over the past year, with shares gaining a staggering 136%. Even in the last six months, the stock has soared by an impressive 87%. As of now, the current market price of NCC Limited's stock on the BSE stands at ₹170.20 per share, marking a 0.88% intraday gain.
August 31 witnessed NCC Limited's shares hitting a 52-week high, reflecting the company's strong performance. It's worth noting that on August 25, NCC Limited shares traded ex-dividend, with shareholders receiving a dividend of ₹2.20 per share.
Key Stock Performance & Returns:
This remarkable stock performance is not a recent phenomenon. NCC Limited has consistently delivered impressive returns over various timeframes:
- In the last 2 years, NCC shares gained an impressive 118%.
- Over the past 3 years, the stock soared an astonishing 408%.
- In a 5-year timeframe, NCC shares surged by a commendable 73%.
- Looking back over the last decade, NCC's stock has witnessed an astounding jump of 1505%.
About NCC Limited
NCC Limited is a versatile player in the construction and infrastructural development sectors. The company's reach extends across the nation, and its construction activities encompass a wide range of sectors, including buildings, transportation, water & environment, electrical (T&D), irrigation, mining, and railways. For more detailed information, you can visit their official website.
In summary, NCC Limited's stock has exhibited remarkable growth over the years, making it an attractive prospect for investors. Its consistent performance and diverse portfolio in the construction and infrastructure sectors underline its position as a key player in the market.
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- Sep 28, 2023