NCC shares down over 3% despite Q1 net profit rising by 21%

For the quarter ended June 30, 2024, NCC reported a 16.78% YoY growth in its earnings before interest, taxes, depreciation, and amortisation (EBITDA) to ₹477.91 crore. The EBITDA margin for the quarter came in at 8.6% while the net profit margin stood at ₹3.8% of revenue.

At the end of Q1FY25, the company’s order book stood at ₹52,626 crore. The company had secured orders amounting to ₹408 crore during the quarter. NCC announced last month that it had won orders worth ₹335 crore in the month of June 2024.

The company’s buildings division made up 39% of the order book while the electrical (transmission & distribution) division accounted for 21%. The transportation division made up 18% of the order book. T he basic and diluted earnings per share grew by 24% YoY to ₹3.2.

NCC reported that its credit rating was upgraded to AA- during the quarter.

NCC also announced the scheme of arrangement for the merger of its wholly-owned subsidiary, NCC Infrastructure Holdings (NCCIHL) with NCC. Since NCCIHL is a wholly-owned subsidiary of NCC, the merger will not result in an issue of shares.

NCCIHL is an infrastructure company that deals with road projects, infrastructure projects, building projects, civil construction works, and conveniences. The company had a revenue of ₹0.48 crore in FY24.

Providing guidance for FY25, the company stated that it expects order inflow to be between ₹20,000-22,000 crore. Revenue is expected to grow 15% while EBITDA margins are expected to be between 9.5-10%.

Shares of the company have risen by nearly 87% since the beginning of the year. The stock has gained over 99% in the past year.