Indian construction firm NCC's fourth-quarter profit rises as stable costs offset slower execution

Ashoka Buildcon

15/05/2025 14:24

May 15 (Reuters) - India's NCC NCCL.NS, which constructs buildings, roads and bridges, reported a higher fourth-quarter profit on Thursday, as stable costs offset lower revenue inflow due to slow execution of orders.

Consolidated net profit rose about 6% to 2.54 billion rupees ($29.7 million) during January-March.

Revenue from operations decreased 5.5% to 61.31 billion rupees, while total expenses fell 5.2%.

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KEY CONTEXT

NCC, which has posted a higher profit in two of the past three quarters, benefited from diversifying beyond road construction to segments such as power transmission, irrigation and railways, analysts said.

Favourable weather from January to March drives execution of construction projects and is usually seasonally strong for infrastructure and allied companies, but NCC took a hit from delayed government payments on some of its water supply projects, said Elara Securities.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
NCC
NCCL.NS
13.66
7.00
13.86
28.18
Buy
10
0.75
0.97
KNR Constructions
KNRL.NS
15.33
9.23
3.02
-33.48
Hold
14
0.77
0.11
PNC Infratech
PNCI.NS
11.09
14.85
24.99
-8.83
Buy
14
0.66
0.23
Ashoka Buildcon
ABDL.NS
13.48
13.24
10.64
49.17
Buy
7
0.76
NULL

 * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JANUARY-MARCH STOCK PERFORMANCE

-- All data from LSEG

($1 = 85.5080 Indian rupees)

NCC Q4 https://tmsnrt.rs/3F2oE0B

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Krishna Chandra Eluri)

 ((Hritam.Mukherjee@thomsonreuters.com; Twitter: @MukherjeeHritam;))