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NCC – Weak Quarter; Guidance pruned


Weak Performance: NCC reported revenue from operations for Q3 FY25 at ₹4671 crore, down 1.6% YoY given slower pace of execution due to elections which led to elongated billing cycles. Subsequently, EBITDA reported at ₹409.5 crore was down 14.6% YoY along with margins reported at 8.8% YoY, down 130 bps YoY. PAT at ₹185.4 crore, was down 13% YoY given the muted execution.
Elections led weakness: The management has indicated that muted turnover was owing to slower pace of execution during Q3 largely led by state elections (Maharashtra and Jharkhand which together forms 46% of the order book) and unprecedented rainfall leading to elongated billing cycles. We highlight that execution recovery is likely only in FY26, with Q4FY25 being another muted quarter.
Guidance pruned; Order book Healthy: Subsequently, management has revised growth guidance downward to 5% (15% earlier) and margin guidance to 9.25% for the year (9.5% earlier). The orderbook stood at ₹51,834 crore as of Q3 FY25, 2.7x TTM book to bill. It has however maintained its order inflows outlook of ₹20000-22000 crore for the year, given it has achieved over ₹13500 crore worth order inflows for the year (₹8440 crore in Q3) and having L1 position worth ₹9000-10000 crore in pipeline.
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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