NBCC shines on signing two MoUs

The state owned real estate company, NBCC Ltd., informed that it signed two MoUs with Delhi Development Authority and Odisha Thermal Power Corporation Limited, on Tuesday.

The MoU signed in Delhi is with revised conditions, which was first initiated in February, 2015. According to the revised MoU, the company will have the scope of working for Integrated Development work in East Delhi Hub, Karkardooma, in New Delhi. The stated work order will be based on transit-oriented development (TOD) terms, where the company will have to work in project planning, designing, and execution of agency.

Total of 1,600 residential structure will be constructed and planned by NBCC, according to this contract. The project cost that will come in to the system is nearly Rs. 1,393 crore under phase 1 of the construction.

Another MoU, which the company signed with Odisha Thermal Power Corp. Ltd, binds it in a contract worth Rs. 200 crore for civil construction related work in the thermal power plant in Odisha.

The company has strong order book of around Rs. 80,000 crore, which translates into book-to-bill of ~8x on FY19 revenue, giving a strong revenue visibility in the foreseeable future. 

In the last quarter (Q2FY20), the company's net sales registered a fall of around 20 per cent to Rs 1,656 crore from Q2FY19.  Due to adjustment of deferred tax/liabilities, the company posted a net loss of Rs 91 crore against the profit of Rs 79.3 crore in Q2FY19.

On Tuesday, the stock of NBCC jumped by 3.2 per cent making intra day of Rs 35.90 from its previous close of Rs 34.80 on BSE.