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NCC Ltd.

BSE: 500294 Sector: Infrastructure
NSE: NCC ISIN Code: INE868B01028
BSE LIVE 15:45 | 22 Aug 84.15 -1.05
(-1.23%)
OPEN

85.65

HIGH

86.15

LOW

83.50

NSE 15:43 | 22 Aug 84.15 -0.90
(-1.06%)
OPEN

85.60

HIGH

86.20

LOW

83.40

OPEN 85.65
PREVIOUS CLOSE 85.20
VOLUME 304612
52-Week high 103.75
52-Week low 71.20
P/E 17.17
Mkt Cap.(Rs cr) 4,678
Buy Price 0.00
Buy Qty 0.00
Sell Price 84.15
Sell Qty 50.00
OPEN 85.65
CLOSE 85.20
VOLUME 304612
52-Week high 103.75
52-Week low 71.20
P/E 17.17
Mkt Cap.(Rs cr) 4,678
Buy Price 0.00
Buy Qty 0.00
Sell Price 84.15
Sell Qty 50.00

NCC Ltd. (NCC) - Chairman Speech

Company chairman speech

Greetings from NCC Ltd !

Welcome to our annual report for the year 2015-16.

Since our inception in 1978 we have transformed. From our early days as a modestpartnership firm we have emerged as India's premier construction and infrastructuredevelopment company with an open and transparent management style that embraces andwelcomes stakeholder's participation and dialogue. At NCC Ltd today we are equally proudof our management professionalism and merit alongside the traditions of relationshipbuilding and mutual respect.

FY16 has been yet another year of good performance in terms of bettering our balancesheet as well as exhibiting our operational resilience. In terms of building theorganization towards our vision to become a world-class construction and infrastructurecompany we have crossed many important milestones in the recent years.

Innovation professional integrity acquiring and improving knowledge skills safetyand health and last but not least being a responsible corporate citizen are the decisivebuilding blocks of our company. We believe that investing in and building ourunderstanding to meet the ever growing infrastructure needs of our country will enable usto deliver sustainable growth leverage scale to increase operating margins over time andprovide a decent return on capital to shareholders on a consistent basis.

I am incredibly proud of our depth of talent. NCC's leadership team including Board ofDirectors and senior management function as a cohesive strategic team in line with ourbroader corporate governance philosophy and long term business goals. When it comes to ourpeople they are our key assets. We have a team of deeply committed and informed humanresource which strengthens our functional capabilities.

I thank all for the continued support and NCC's management team and employees fortheir untiring contributions.

Dr. AVS Raju

Founder & Chairman Emeritus

Chairman's Message

As Chairman of the company and two years as Independent Director with NCC it is myfirm conviction that the Board of Directors and Senior Management at the helm of affairshave a clear vision of where NCC is and where it is headed

Dear Shareholders

On behalf of the Board of NCC Ltd it is my pleasure to present the annual report andaudited Financial Statements for the year ended 31st March 2016; to review our performancefor the year and to outline our future direction. I took over as Chairman of the companywith effect from 10th November 2015 subsequent to resignation of Sri T. N. Manoharan NonExecutive Chairman & Independent Director.

Our Leadership

As Chairman of the company and two years as Independent Director with NCC it is myfirm conviction that the Board of Directors and Senior Management at the helm of affairshave a clear vision of where NCC is and where it is headed. Over the years we have becomehealthier stronger and more confident and have made great progress in our strategicdevelopment. Operational resilience which we exhibited during adverse economic situationsis a true reflection of our leadership governance and risk managing capabilities.

Performance

During the year ended FY16 the company has bettered its top line and significantlyimproved the margins. The EBDITA margin has improved to 8.8% in FY 16 compared to 7.8% inthe previous year. More importantly the net profit (PAT) increased by 100% to Rs. 222.8crore. The company has reported an EPS of Rs. 4.01 as against Rs. 2.56 in the previousyear.

The Board of Directors of the Company has recommended the dividend of Rs. 0.60 perequity Share (i.e. 30%) subject to the approval of the shareholders.

Strategic Environment

FY 16 was a significant year for our country in terms of many remarkable economicdevelopments. India remains reasonably insulated from the adverse effects of the globaleconomic crisis. A potential GDP growth of 8% is predicted in FY 17. The policy makershave made strong growth-pro-business pronouncements. The forecast for the economic andpolitical health of the country has never been better.

To make the India growth story a reality it's imperative that the infrastructuresegment grows at a healthy pace. For instance in India national highways account for only2 per cent of the total road network but carry 40 per cent of the total traffic.Similarly significant investments are required in other infrastructure sectors such asrailways ports energy etc. As reiterated by the Hon'ble Finance Minister of the countryrecently India needs over $1.5 trillion in investment in the next 10 years to bridge thisinfrastructure gap.

Many structural operational financial and political challenges had resulted inrigidity in contract negotiations protracted dispute resolutions and land acquisition.The sector which used to be plagued with lack of long term financial instruments andlimited funding by commercial banks is seeing better availability of capital provided thestakeholders stick to good governance transparency and operational efficiencyimprovements.

A number of these challenges have been or are being addressed by the government. TheKelkar Committee which was constituted to recommend action points for reinvigorating thePPP programme has also provided encouraging suggestions. Recognizing this challenge theGovernment has provided for a planned outlay of $15 billion in the 2016 budget for theIndian road sector alone. The hybrid annuity mode of road development in which NHAIprovide 40% of the project cost during the construction period is a step in the rightdirection. Likewise the amendments made in October 2015 to the Arbitration andConcilation Act 1996 should speed up the process of claim settlement and which is expectedto benefit the construction companies in particular.

The government has also proposed setting-up the National Investment and InfrastructureFund (NIIF) with an initial corpus of Rs. 200 billion wherein a 49 per cent stake wouldbe contributed by the government. In terms of highway construction this year alone theGovernment has set a target of 10000 kms.

NCC is fully equipped to benefit from these emerging economic developments as apreferred infrastructure development partner with unique credentials.

I would like to take this opportunity to express my deepest appreciation to ourcustomers bankers employees investors and partners who have believed in us andsupported us.

Yours truly

Hemant M Nerurkar

Chairman