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Informist, Tuesday, Dec. 31, 2024

 

--NCC official: Waiting for Andhra govt to issue tenders for Amaravati works

--NCC official: Amaravati works to be time-bound now, backed by govt funding

--NCC official: Keen on construction, road, water supply projects in Andhra

--NCC official: FY25 revenue growth guidance remains at 15%

--NCC official: On track to achieve FY25 new order accruals target

--CONTEXT: NCC aimed new orders worth INR 200 bln-INR 220 bln FY25

--NCC official: Bagged INR 120 bln worth of new orders FY25

--NCC official: Co lowest bidder for INR 90 bln worth of projects FY25

By Narayana Krishna

 

HYDERABAD - Despite the slow growth in new order accruals in Apr-Sept, construction major NCC Ltd. is confident about meeting its target of new order additions worth INR 220 billion in 2024-25 (Apr-Mar), as it expects momentum in government spending in the coming months, Neerad Sharma, the company's head of strategy and spokesperson, told Informist.

 

"The first quarter (Apr-Jun) was a total washout... even in the second quarter, there were some delays in order inflows. We are hopeful that we should meet the target in the remaining period of this year," Sharma said. NCC's order book was at INR 523 billion as of Sept. 30, and it has secured INR 120 billion worth of new orders as of Monday, he said, adding that almost 60% of the target has been achieved.

 

Further, the company has emerged as the lowest bidder for new projects worth INR 90 billion, but is awaiting the letter of award from agencies, Sharma said, adding that there is a delay in awarding orders in the roads segment due to land acquisition issues.

 

Sharma reiterated that despite hiccups in order inflow during the first two quarters of the current financial year, the company remains on track to achieve the 15% on-year growth in revenue as the current order book is sufficient to achieve that target.

 

NCC's net profit for the September quarter surged 132.6% on year to INR 1.61 billion. Revenue from operations for the quarter rose 3.8% to INR 44.45 billion. Sequentially, net profit fell 20% and revenue was down 5.7%. For the six months ended September, net profit jumped 56.2% to INR 3.61 billion, while revenue rose 12.8% to INR 91.58 billion.

 

AMARAVATI BIDDING

The company is gearing up to place a fresh bet on Amaravati, Andhra Pradesh, where the state government is all set to call tenders for the development of the new capital city. After securing the nod from the World Bank and Asian Development Bank, backed by the Centre, the Andhra Pradesh government recently approved nearly INR 480 billion worth of development works as part of its strategy to complete Amaravati's development within three years.

 

The company had earlier faced delays and cancellation of works in Amaravati due to political reasons, but still wants to bid for upcoming projects. "We would not refrain. The way we look at contracts, I think we are very positive. We will try to participate, but it essentially depends on the size of the project. This time, the government of the day is on record to say that they want to complete everything in three years," Sharma said. The company is aiming to bid for construction, road, water supply and sewerage works in the new capital city. However, it may take another three-four months to get complete clarity on the nature of works and size of the projects on which bids will be called by the Andhra Pradesh government, Sharma said.

 

At 1130 IST, shares of the company traded at INR 272.05, up 0.6%, on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Namrata Rao

 

 

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