NBCC India shares rally over 2% as company receives ₹1,905 crore from commercial inventory sale

Shares of NBCC India Ltd rallied more than 2% to reach the day's high of ₹117.75 apiece on the NSE on Tuesday after the public sector company announced the sale of commercial inventory worth ₹1,905 crore.

NBCC conducted its 25th auction for the sale of commercial space in the World Trade Centre, Nauroji Nagar, New Delhi, on March 22, 2024, acting as the Project Management Consultant (PMC) and Marketing Consultant on behalf of the Union Ministry of Housing and Urban Affairs.

The state-owned construction company successfully sold a total of 4.79 lakh sqft (approximately) of previously unsold commercial inventory, with a total sale value of ₹1,904.81 crore. Among these sales, 0.41 lakh sqft of area, valued at ₹164.2 crore, was sold to private entities.

The company has so far sold a total of 30.08 lakh sqft of previously unsold commercial inventory through open e-auction, with a total sale value of ₹12,106.13 crore.

Last month, NBCC India's wholly-owned subsidiary, HSCC (India) Ltd, secured a work order, for a project worth ₹459.7 crore, from the Maharashtra government.

The work order was related to the construction of a 600-bed general hospital, 250-bed cancer hospital, and 250-bed super speciality hospital in Kolhapur.

NBCC India also signed a memorandum of association (MoU) with IFCI Ltd for "planning, designing and execution of infrastructure projects as well as repair/renovation works for IFCI's properties on pan-India basis".

In its quarterly results last month, NBCC India witnessed a 12.96% increase in its topline and a 60.29% jump in profit year-on-year for Q3FY24. When compared quarter on quarter, its revenue jumped 17.5% and profit by 39.13%.

At the operational level, EBITDA increased by 23.2% to ₹117.3 crore in Q3 of this fiscal year, compared to ₹95.2 crore in the corresponding period of the previous year.

At 12:48 pm, shares of NBCC India Ltd were trading at ₹116.15 apiece, up 0.96% on the NSE.