NCC Ltd (BOM:500294) Q2 FY25 Earnings Call Highlights: Strong Order Book and Revenue Growth ...

GuruFocus News
4 min read

In This Article:

  • Order Book: INR 52,370 crore as of September 2024.

  • Revenue (Standalone): INR 4,445 crore for Q2 FY25; INR 9,158 crore for H1 FY25.

  • Revenue (Consolidated): INR 5,196 crore for Q2 FY25; INR 10,224 crore for H1 FY25.

  • Gross Margin (Standalone): 15.15% for Q2 FY25; 14.96% for H1 FY25.

  • EBITDA Margin (Consolidated): 9% for Q2 FY25.

  • Net Debt: INR 624.56 crore at the end of Q2 FY25.

  • Debt-Equity Ratio: 0.25 at the end of Q2 FY25.

  • Working Capital: INR 4,987 crore, representing 27% of turnover.

  • Receivables: Reduced from INR 3,654 crore at the end of Q1 to INR 2,793 crore at the end of Q2 FY25.

  • Unbilled Revenue: INR 5,220 crore for Q2 FY25.

  • Return on Equity (ROE): 13.61% for Q2 FY25.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • NCC Ltd (BOM:500294) reported a strong order book of INR 52,370 crore as of September 2024, indicating a healthy pipeline of future projects.

  • The company achieved a consolidated turnover of INR 10,224 crore for the first half of the financial year, surpassing the budgeted turnover.

  • NCC Ltd (BOM:500294) maintained its revenue growth guidance of 15% and EBITDA margin guidance of 9.5% to 10% for the fiscal year.

  • The company has seen significant traction in its buildings and transportation divisions, with a substantial order book in these areas.

  • Debt levels have been reduced by INR 87.03 crore compared to the previous quarter, with a debt-equity ratio standing at 0.25, indicating improved financial health.

Negative Points

  • The company experienced lower turnover in its water projects due to delays caused by heavy rainfall and other operational challenges.

  • There was a reduction in profitability in Q2 FY25 compared to the same quarter last year, primarily due to lower turnover in certain projects.

  • NCC Ltd (BOM:500294) faced delays in receiving approvals and permissions for some projects, impacting project timelines.

  • The company's working capital days increased, indicating potential inefficiencies in managing receivables and payables.

  • Despite a strong order book, the conversion of L1 projects into formal contracts remains uncertain, which could impact future revenue realization.

Q & A Highlights

Q: Are you confident in achieving the revenue growth and margin guidance for the second half of the year? A: Yes, we are confident. Despite challenges in the first half due to heavy rains, we expect to achieve the 15% revenue growth and maintain EBITDA margins between 9.5% to 10%. We have a strong order pipeline and expect to meet our guidance. - A S N Raju, NCC Director

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