Earnings Impact: NCC share price jumps 8% on strong Q4 results

Shares of NCC surged almost 8 percent in intra-day deals on Thursday after the firm posted strong results for the quarter ended March 2024 (Q4FY24).

The construction company’s net profit rose 25.2 percent year-on-year (YoY) to ₹239.2 crore in the fourth quarter of FY24 as against ₹191 crore in the same quarter last year (Q4FY23). Meanwhile, its revenue jumped 31 percent YoY to ₹6,485 crore in Q4FY24 versus ₹4,949 crore in Q4FY23.

On the operating front, the company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 18.5 percent to ₹550.4 crore in the quarter under review, as against ₹464.6 crore in the corresponding quarter last year. Consequently, the margin decreased slightly to 8.5 percent, from 9.4 percent YoY.

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The stock rose as much as 7.7 percent to its day's high of ₹270.55. Post today's gains, the stock is now just 2.6 percent away from its record high of ₹277.90, hit on April 5, 2024. Meanwhile, it has rallied around 172 percent from its 52-week low of ₹99.55, hit on May 24, 2023.

The stock has also given multibagger returns in the last one year, soaring 124 percent. Meanwhile, it has advanced over 62 percent in 2024 YTD, giving positive returns in 4 of the 5 months this year. It has gained 10.6 percent in May so far after an over 4 percent rise in April. However, it lost 6 percent in March. The scrip also advanced 15 percent in February and 29 percent in January this year.

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The firm also informed that it has received its highest-ever order inflow of about ₹26,000 crore in 2022-23 on higher outlay by the government under the National Infrastructure Pipeline (NIP). NCC's order book grew to ₹57,536 crore at the end of 2023-24 versus ₹50,244 crore at the end of FY23.

NCC’s consolidated net debt stood at ₹428 crore as of March 31, 2024.

During the quarter, the company also announced that it entered a new segment of smart meters, and bagged three projects of ₹8,080 crore. NCC has already started a field trial of smart meters for the Bihar project. It is also planning to start the field trials for the Maharashtra packages next month.

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Furthermore, the Board of Directors of the company also proposed a dividend payment of ₹2.20 per equity share with a face value of ₹2 each, for FY24.