Indian construction firm NCC posts 34% jump in Q1 profit

KNR Constructions

10/08/2023 11:11

BENGALURU, Aug 10 (Reuters) - Indian construction firm NCC  NCCL.NS  reported a rise in first-quarter profit on Thursday as
execution was robust amid strong inflow. 
    The company's consolidated net profit after tax rose nearly 34% year-on-year to 1.74 billion rupees ($21 million) in the three
months ended June 30. 
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN39R0WV
    
    
    KEY CONTEXT
    Project execution was robust during the quarter given the strength of order backlogs at infrastructure companies. Order books, or
projects undertaken, for companies such as Larsen and Toubro (L&T)  LART.NS  have grown year-on-year, bolstering profits.
    Meanwhile, order inflow was mixed, according to brokerage JM Financial, with companies such as NCC and L&T experiencing a larger
influx, while HG Infra Engineering  HGIN.NS  and KNR Constructions  KNRL.NS  struggled to receive orders. 
    In fiscal 2023, NCC had recorded all-time highs for its order inflow and order book, along with its lowest debt. 
    
    PEER COMPARISON   
                                          Valuation (next 12     Estimates (next 12 months)          Analysts' sentiment          
                                               months)                                                                         
                               RIC        PE     EV/EBITDA      Revenue growth   Profit Growth   Mean     # of     Stock to     Div
                                                                                                rating*  analyst     price     yield
                                                                                                            s      target **    (%)
 NCC Ltd                    NCCL.NS      Null   5.78           15.74             24.41          Strong   13       1.06         1.43
                                                                                                Buy                            
 KNR Constructions Ltd      KNRL.NS      15.36  8.75           8.82              16.80          Buy      18       0.81         0.10
 PNC Infratech Ltd          PNCI.NS      12.89  12.78          13.88             11.40          Strong   13       0.85         0.14
                                                                                                Buy                            
 HG Infra Engineering Ltd   HGIN.NS      11.39  8.97           19.06             18.50          Strong   15       0.84         0.13
                                                                                                Buy                            
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
    
    APRIL-JUNE STOCK PERFORMANCE
  
  
    -- All data from Refinitiv
    -- $1 = 82.7350 Indian rupees

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APRIL TO JUNE STOCK PERFORMANCE    https://tmsnrt.rs/3OuvHzJ
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 (Reporting by Varun Vyas in Bengaluru; Editing by Savio D'Souza)
 ((varunvyas.hebbalalu@thomsonreuters.com;))