NBCC shares surge 4.3% after company bags new orders worth ₹369 crore

Shares of NBCC (India), the state-owned construction firm, jumped 4.3% in today's early morning deals, reaching ₹147.40 apiece after the company received orders worth ₹369.05 crore from multiple clients.

The company informed investors through an exchange filing on Monday that it secured an order worth ₹331.9 crore from the Rani Lakshmi Bai Central Agricultural University in Uttar Pradesh's Jhansi district for the upcoming infrastructure development works, according to an exchange filing on Monday.

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The other is from the high court for Telangana for the construction of a single court complex and residential quarter in Adilabad district. This order is worth ₹12.2 crore. 

Further, it secured an order for the renovation and furnishing project of the Institute of Chartered Accountants of India Bhawan in Noida, which is valued at ₹24.98 crore, as per the company's exchange filing. 

On January 15, the company said it had bagged a ₹262 crore project to redevelop Ministry of External Affairs housing in the national capital.

In a statement, NBCC said the "Bhoomi Poojan Ceremony" for the redevelopment of the Ministry of External Affairs Housing at KG Marg took place on February 14, 2024.

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On the back of strong order wins from the government, the stock rewarded its shareholders with a return of 208% in just six months, and it gained 329% in the last one year. Taking the stock's April 2020 low of ₹15.90 apiece into account, it has skyrocketed 809% to date. 

Established in 1960 as the construction arm of the Government of India, NBCC achieved 'Navratna' status in 2014. Its core operations span across three primary segments: project management consultancy (PMC), real estate development, and EPC contracting.

The real estate segment includes residential projects like apartments and townships, as well as commercial projects such as corporate office buildings and shopping malls.

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Looking at the company's financials, the company posted a 59% improvement in its consolidated net profit of ₹113.56 crore in Q3FY24. In the same period last year, the company reported a net profit of ₹71.49 crore. 

The consolidated revenue from the operations during the December quarter jumped to ₹2,471.51 crore from ₹2,191.24 crore in Q3 FY23, which is an increase of 12.80%. 

The revenue from its PMC segment, which accounts for the company's 90% revenue, rose to ₹2,241 crore from ₹1,950 crore in Q3 FY23, while the revenue from the real estate and EPC segments came in at ₹33 crore and ₹130 crore, respectively. 

During the first nine months of the current fiscal year, the company's net profit soared to ₹273 crore from ₹164 crore in the year-ago period. Additionally, its total revenue increased to ₹6,566 crore in the first nine months of this fiscal, compared to ₹6,118 crore in the corresponding period of the previous year.

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