NCC real estate subsidiary's PAT falls 27% Rs 7.38 crore in Q1 FY25

The Hyderabad-based firm reported a turnover of Rs 75.35 crore in the real estate segment

Nagarjuna Construction Company (NCC) Limited’s real estate subsidiary, NCC Urban Infrastructure Limited, reported a Profit After Tax (PAT) of Rs 7.38 crore in the real estate segment for Q1 FY25, a slump of 26.78 per cent on a yearly basis. The company’s turnover in the segment stood at Rs 75.35 crore.

“The change in profitability depends upon the project mix. The profit margin varies from project to project on a quarterly or yearly basis,” one of the company executives told Business Standard.

NCC also recorded a reduction in investments in the real estate segment on the back of share buybacks during the last quarter of the last financial year. The Hyderabad-based firm’s investment came down to Rs 229 crore from Rs 240 crore.

 

The total debt stood at Rs 47 crore, up 6.81 per cent on a yearly basis, which, the company said, “is a seasonal trend that persists in the first as well as the second quarter and eases in the remaining two quarters of a financial year.”

On being asked about the company’s future outlook in the context of the development of Amaravati as the capital of Andhra Pradesh, the executive said, "Real estate is a very small business at the group level. It constitutes less than 1.5 per cent of our overall revenue. What we have tried to do in the past or what we possibly may get to do in the future in Amaravati is the construction contract business. It has nothing to do with our reported real estate business. Our main source of revenue is our construction contract business. We hope to get those construction contracts in Amaravati that may or may not be real estate business.”

Besides, the company’s consolidated gross real estate segment revenue stood at Rs 73.13 crore, with a marginal increase of 1.96 per cent on a yearly basis. The consolidated revenue from operations in the segment also showed a year-on-year increase of 1.60 per cent.

Currently, the company has four million square feet of built-up area under construction in Bengaluru, Hyderabad, Chennai, Kochi, Guntur, and Ranchi, with future pipeline projects across the area of five million square feet.

NCC’s strong consolidated Q1 FY25 performance

Overall, NCC reported a strong consolidated Q1 FY25 performance with a year-on-year increase of 26.2 per cent in revenue (Rs 5,528 crore), 16.8 per cent in EBITDA (Rs 478 crore), 0.7 per cent in EBITDA margin (8.6 per cent), and 20.8 per cent in net profit (Rs 223 crore).