NCC reports robust executionNCC - 173 Change: -1.30 (-0.74 %)
News: NCC Ltd's revenue on standalone basis improved 56.3% YoY to Rs 2,958.6 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).
View: 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 capital cycle.