The construction company's consolidated net profit slumped 76.5% to Rs 17.01 crore on 44.7% decline in net sales to Rs 1,297.60 crore in Q1 June 2020 over Q1 June 2019.
Consolidated pre-tax loss stood at Rs 11.97 crore in Q1 June 2020 as against pre-tax profit of Rs 113.65 crore in Q1 June 2019. Current tax rebate for the quarter stood at Rs 27.02 crore as against a tax expenditure of Rs 47.18 crore in Q1 June 2019. The Q1 earnings were announced after market hours yesterday, 12 August 2020.
On a consolidated basis, NCC has reported a turnover of Rs 1,328.71 crore in the first quarter of financial year 2020-21 as against Rs 2,371.51 crore in the corresponding quarter of the previous year. The company reported EBITDA of Rs 124.82 crore in Q1 June 2020, a decline of 55.32% over Q1 June 2019.
The operating results of this quarter are not comparable with the corresponding quarter of the previous year, since COVID-19 has impacted the operations significantly. The COVID-19 lock down and also the supply & manpower disruptions impacted the construction industry significantly and our company was also affected. For our company the impact on the top line has been about 45%. The gross margins of the company though not affected much but the EBIDTA & PAT margins are significantly affected due to non-absorption of fixed cost with lower volume of turnover. The situation is expected to improve in the remaining quarters.
In the first quarter of 2020-21, the company has secured orders aggregating to Rs 2592 crore and the order book stood at Rs 27916 crore as at the end of the first quarter.
Shares of NCC fell 0.80% to Rs 30.90 on BSE. NCC is engaged in the construction/project activities in the infrastructure sector. The firm is involved in the construction of industrial and commercial buildings, roads, bridges and flyovers, water supply and environment projects, housing, power transmission lines, irrigation and hydrothermal power projects and real estate development.
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