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Entry Price

37.00

Target

38.00

Recommend Date

19-11-2019

Return

2.70 %
BUY

Date : 19-11-2019

NBCC’s topline grew 21.2% YoY to | 1,656.3 crore in Q2FY20. PMC division revenues grew 19.8% YoY to | 1,566.8 crore while EPC revenues jumped 3.6x YoY to | 88.2 crore due to the low base of Q2FY20. The company reported negative EBITDA of | 1.5 crore (EBITDA margin: -0.1%) in Q2FY20. EBIT margins of the PMC division contracted 434 bps YoY (83 bps contraction QoQ) to 3.8% in Q2FY20. Overall, NBCC reported a loss of | 99.3 crore in Q2FY20 vs. | 76.2 crore profit in Q2FY19. This was mainly on account of lower EBITDA and the company moving to the new tax regime.