NCC Shares Gain Over 4% On 132.1% YoY Growth In PAT In Q1Fy23

Shares of construction and contracting entity - NCC Ltd in trade on Wednesday gained by over 4% to day's high price of Rs. 66.6 per share on the NSE. The company's share last on Monday closed at Rs. 63.65 apiece.

The gains in the stock price are on the back of healthy performance by the company in the Q1Fy23 period. The company's revenue on standalone basis improved 56.3% YoY to Rs. 2958.6 crore backed by its strong order book position and pick-up in execution. Operating margin was at 9.5% (down 105 bps YoY) possibly having a partial impact of higher raw material prices. Effectively, operating profit at Rs. 281.2 crore, was up 40.8% YoY. At the net level, the company has reported 132.1% YoY growth in PAT to Rs. 120 crore.

Brokerage firm ICICI Direct is of the view that "Overall NCC reported a strong performance during Q1FY23 with beat on topline and earnings driven by healthy execution. Also, it has secured orders aggregating to Rs. 4,456 crore during Q1 FY23, which has kept its order book at an elevated level of Rs. 40,616 crore as on June 30, 2022. Going forward, NCC is well poised for growth ahead given a) the strong order book position, b) expected pick-up in execution, c) debt reduction, and d) improvement in working capitalcycle".

The company's scrip shall trade ex-dividend on August 11, 2022 for the final dividend of Rs. 2 per share.

NCC Ltd. is engaged in the construction activities in the infra sector. The company carries out the construction of commercial buildings, roads, bridges, water supply & environment projects, housing, power transmission lines and hydrothermal power proj