NBCC gains after inking MoU with OTPCL

NBCC (India) rose 2.73% to Rs 35.75 after the company signed a memorandum of understanding with Odisha Thermal Power Corporation.

NBCC (India) in an exchange filing during market hours today, 17 December 2019, said that it signed Memorandum of Understanding (MoU) with Odisha Thermal Power Corporation (OTPCL), Bhubaneswar for civil construction and various developmental works of thermal power plant. The total estimated cost of the project is approximately Rs 200 crore.

In a separate announcement today, 17 December 2019, the company said that Delhi Development Authority (DDA) has revised the conditions of its earlier MoU with the company.

As per the revised MoU, DDA has entrusted the 'integrated development work of East Delhi Hub, Karkardooma, New Delhi based on transit-oriented development (TOD) norms wherein NBCC will work as project planning, designing and executing agency. The scope of work for NBCC comprises master planning of the entire project and construction of 1600 residential units, external amenities, infrastructure services and other developmental works. The total estimated cost of the development of Phase-I of this project is Rs 1393 crore.

Earlier this month, the company received an order from the Government of India for construction of Rajaswa Bhawan, National Tax Headquarters, New Delhi. The estimated project cost is approximately Rs 621 crore.

On consolidated basis, NBCC (India) reported a net loss of Rs 99.19 crore in Q2 September 2019 as against a net profit of Rs 69.11 crore in Q2 September 2018. Net sales fell 19.7% to Rs 1,656.32 crore in Q2 September 2019 over Q2 September 2018.

The stock continues to trade below its 50 days and 200 days simple moving average placed at 36.01 and 48.09 respectively. These two levels will acts resistance in near term.

NBCC (India), formerly National Buildings Construction Corporation, provides civil engineering construction services. The company operates through three segments: project management consultancy (PMC), real estate development, and engineering, procurement and construction (EPC).

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