- 29 May 2023
- ICICI Securities
Strong execution drives overall beat for NCC
NCC - 247 Change: -2.35 (-0.94 %)News: NCC Ltd's performance during Q4FY23 was marked by superior execution, which also led to the beat at the bottomline level. Standalone revenues were up 28.1% YoY to Rs 4016 crore (vs. I-direct estimate of 18% growth) backed by its strong order book position and pick-up in execution. FY23 Revenues grew by 34.5% YoY at Rs 13351 crore. Operating margin was at 10.6% (up 204 bps YoY), driven by operating leverage. At the net level, strong operating performance translated into 64% YoY growth in adjusted PAT (to Rs 177.7 crore). NCC has secured orders aggregating to Rs 25,895 crore during FY23, which has kept its order book at an elevated level of Rs 50,244 crore, 3.8x book to bill.
Views: We highlight that while execution has been on a strong trajectory, margin recovery amid benign raw material, is also aiding earnings growth. Continued traction along with order book visibility could provide superior earnings in FY24 and FY25.
Impact: Positive