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NCC Ltd.

BSE: 500294 Sector: Infrastructure
NSE: NCC ISIN Code: INE868B01028
BSE 00:00 | 27 Oct 74.75 -0.20
(-0.27%)
OPEN

75.00

HIGH

76.20

LOW

74.45

NSE 00:00 | 27 Oct 74.80 -0.15
(-0.20%)
OPEN

75.40

HIGH

76.15

LOW

74.35

OPEN 75.00
PREVIOUS CLOSE 74.95
VOLUME 138649
52-Week high 100.00
52-Week low 33.00
P/E 15.41
Mkt Cap.(Rs cr) 4,559
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 75.00
CLOSE 74.95
VOLUME 138649
52-Week high 100.00
52-Week low 33.00
P/E 15.41
Mkt Cap.(Rs cr) 4,559
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

NCC Ltd. (NCC) - Chairman Speech

Company chairman speech

During the hard times our company exhibited time-tested operational endurancemeticulously built over the years. Among the infrastructure-construction companies we areindeed uniquely positioned with our execution skills and pragmatic financial risk andproject management capabilities.

Dear Shareholders

FY21 was a challenging year for the global economy due to the impact of the pandemic.

Stepping to FY22 the second wave of the pandemic played havoc. The number of caseswhich peaked in the second week of May 21 have started coming down giving fresh hope. Ourdoctors healthcare and public administration staff fought the pandemic saving thousandsof lives. Nationwide vaccination drive has picked up speed.

My deepest sympathies for all those who lost their dear ones. It is our collectiveresponsibility to help all those who are distressed due to the impact of COVID.Individuals business houses governments and NGOs must come together to handhold thedistressed and the needy. At NCC while people's safety is our immediate priority weinitiated a vaccination programme for our employees and their immediate family members. Wecontinue to strictly follow all social distancing and hygiene protocols at our offices andproject sites.

Economy

The Indian economy is reported to have contracted by 7.3% in FY2021. Most of the largeand medium businesses including banks in India have managed the pandemic risk prudently.However the badly hit sectors are MSME sports entertainment tourism hospitality andservice sectors. But I am confident that economic momentum will improve as the largedevelopmental projects like infrastructure and construction get into full swing. Despitethe pandemic the agricultural sector has done well in FY21. With the prediction of anormal monsoon in FY22the agrarian sector is expected to do well in this year also.

Being a developing nation India must catch up and align with the developed world interms of economic recovery. Indian economy is projected to grow 11% in FY22 backed by thebudget allocation for development activities and the ongoing vaccination drive. I am happythat the various ministries of the Govt of India State governments and RBI areproactively working towards this. As a sign of recovery in the last quarter of FY21 theIndian economy grew by 1.7%.

How We Performed

During the hard times our company exhibited time-tested operational endurancemeticulously built over the years. Among the infrastructure-construction companies we areindeed uniquely positioned with our execution skills and pragmatic financial risk andproject management capabilities. As a core sector player our performance in FY21 is incomplete alignment with the Indian economy and its expected recovery. Our consolidatedrevenue during Q4FY21 was up 21% YoY to Rs 2817 crore as against Rs 2334 crore in FY20.

Our growth during the last quarter was mainly driven by our strong order book andpick-up in execution. The EBIDTA for the period is Rs 306 crore as against

Rs 287 crore during the Q4 of FY20 and PAT attributable to equity Shareholders

Rs 117 crore as against Rs 76 crore. Our order book as on 31.03.2021 stands at

Rs 37911 crore. The company has secured orders worth Rs 18943 crore in FY21. Steppinginto FY22 we continue to receive new orders for different segments of our business.

The Board of Directors at the meeting held on 28.05.2021 have recommended equitydividend of 40% (Rs 0.80 per share of

Rs 2 each) on a paid capital of Rs 121.97 crore subject to the approval of theshareholders at the annual general meeting.

Opportunity Spectrum

Budget allocation for the infrastructure and construction sector got a significantboost of close to 35% increase compared to FY20. This includes a budgetary allocation ofRs 5.54 lakh crore and an additional Rs 2 lakh crore to states and autonomous bodies. Asan outcome we should see more projects being prepared and rolled out.

The intention to speed up monetisation of brownfield infrastructure assets by creatinga National Monetisation Pipeline will send the right signals to private investorsenabling them to make long-term commitment to Indian opportunities either by way ofinvestment in capital assets technology or sourcing funds.

As most stressed assets were in the infra sector lenders were becoming extremely riskaverse and shying away from lending to infra projects which posed a significant risk tosuccessful and timely execution of the National Infrastructure Pipeline. Setting up of theARC and AMC to address bad assets while recapitalising lending institutions and creating anew development finance institution can help trigger lending for infra sectors. Howevermany of the prevailing infra sector specific and cross-sector issues will still need to beresolved if the momentum has to be built up. Also the issues plaguing the success ofearlier instruments like long-term infra bonds and dedicated financial institutions likeIndia Infrastructure Finance Company Limited created solely for infrastructure financingneed to be addressed in parallel for the success of proposed new institutionalarrangements.

Approximately Rs 77352 crore has been proposed in FY22 for the water domain thatspreads across the Ministry of Jal Shakti Ministry of Agriculture and Farmers' WelfareMinistry of Rural Development and Ministry of Housing and Urban Affairs. This allocationis almost double of last year's budget estimate. Similarly the power sector got anallocation of Rs 15322 crore for FY21-22.

A healthy order book policy and budgetary support for the sector is to our company'sadvantage and I am confident that growth momentum will pick up. I take this opportunity tothank all our clients employees shareholders central and state governments businessmedia and financial institutions for their continued support and guidance.

While concluding let me request all of you to get vaccinated and stay safe. Pleasecontinue to follow all COVID 19 safety protocols.

Stay Safe Stay Healthy
Hemant M Nerurkar
Chairman

.