NBCC zooms 12% on Rs 15,000 cr order win for building satellite township

Shares of NBCC shot up by 11.6 per cent at Rs 188.50 per share on the BSE in Friday’s early morning deals. This came after the state owned civil construction firm bagged a major work order worth Rs 15,000 crore. 

NBCC secured the work order from Srinagar Development Authority for development of satellite township spread over 406 acres at Rakh-e-Gund Akshah, Bemina, Srinagar in Jammu and Kashmir, the company said in an exchange filing. 

On August 1, the company had also received an order from the Ministry of External Affairs for constructing a regional passport office in Srinagar, J&K. The work order amounted to Rs 50 crore.

Moreover, on July 30, 2024, the company also bagged orders from the Medical Education and Ayush Government of Maharashtra for building a new government medical college and a 430 bedded Hospital at Parbhani.

Additionally, the order also involved constructing hostel buildings for doctors in premises of Shri Chatrapati Shivaji Maharaj Sarvopchar Rugnalaya at Solapur. The order collectively amounted to Rs 443 crore.

The company has informed through the exchanges that it will deliver its April-June quarterly earnings for the financial year 2024-25 (Q1FY25) on Tuesday, August 13, 2024.

In Q4FY24, NBCC’s profit rose 24.6 per cent on a year-on-year (Y-o-Y) basis to Rs 141.5 crore in the March quarter of financial year 2024 (Q4FY24), from Rs 113.6 crore in the same quarter a year ago (Q4FY23). 

The company’s revenue zoomed 43 per cent annually to Rs 4,025 crore in Q4FY24, from Rs 2,814 crore in the same quarter last year (Q4FY23).

At the operating front, earnings before interest, taxes, depreciation and amortisation (Ebitda), also known as operating profit, more than doubled to Rs 240.2 crore in Q4FY24, from Rs 104.5 crore in Q4FY23.

Ebitda margin, meanwhile, surged 230 basis points (bps) to 6 per cent in the March quarter of financial year 2024, from 3.7 per cent in the MArch quarter of the financial year 2023.

NBCC is a construction company. It provides project management consultancy, real estate, engineering procurement, construction, civil engineering, and redevelopment. NBCC also provides water treatment plants, water supply networks including raw water mains, and solid waste management.

The share price of the company has zoomed 24.40 per cent in the last six months, while rallying 277.15 per cent in the last one year. NBCC is presently trading at a price to earnings multiple of 88.28 times, while trading at an EPS of Rs 1.91.

At 10:59 AM; the stock price of the company was trading 8.97 per cent higher at Rs 184.05 per share on the BSE. By comparison the BSE Sensex surged by 1.03 per cent at 79,696 levels.