NBCC get orders ₹400 crore worth of orders from SC to build Amrapali projects

State-owned construction companies has received orders worth ₹400 crore from the Supreme Court receiver to build unfinished projects of embattled Amrapali Group in Bhilai district, Chattisgarh and Ernakulum district in Kerala.

“The said works are in the normal course of business,” the company said in a press release, without divulging other details.

The Chattisgarh project is valued at ₹250 crore while the Kerala project is worth ₹150 crore.

NBCC shares fell 3.6% following the news.

The Supreme Court has asked NBCC to complete multiple projects of the Amrapali Group after the NCR-based realtor went bankrupt. At its peak, the Amrapali Group had 50 projects ongoing in 24 cities.

However, as the company got embroiled in financial troubles, as many as 2,500 homemakers dragged the group to the Supreme Court over project delays after which the SC ordered NBCC’s takeover of the projects.

NBCC, which also works with the government on various housing related schemes as PM Awas Yojana and Smart Cities Mission, also offers PMC services in the space of redevelopment and monetisation of assets.

Revenue for the company, however, have been on a declining trend, with sales in 2023 coming in at ₹8,754 crore, compared to ₹9,942 crore in 2019. Profit during the same period has fallen from ₹391 crore to ₹277 crore.

However, the company is zero debt has return of equity of around 13.7, which gives it a reasonable valuation 62 times trailing price-to-earnings ratio.

NBCC shares are up 220% over the past one year compared to 103% for the BSE Realty Index.

In the most recent quarter, it saw a 20% jump in revenues from ₹2,053 crore to ₹2,412 crore while profit rose from ₹81 crore to ₹113 crore.