NCC shines upon securing four government orders in May

In May 2020, NCC Limited has secured new orders. It has received four orders from agencies of State Government and does not include any internal orders.

Among these orders, two relate to the water division while the other two relate to the building division. The total worth of the orders is Rs 1,136 crore, of which orders in water division are worth Rs 993 crore and building division are worth Rs 143 crore. As on March 31, 2020, NCC's order book stood at Rs 25,010 crore. Considering its FY20 consolidated revenue, its book to bill ratio comes to 2.8x.

NCC has stated that its affairs at various project sites were affected, owing to the lockdown imposed by the government starting March 25, 2020. Nonetheless, post relaxations of the lockdown conditions from April 20, 2020 for the construction segment, all its activities have restarted at the project sites. It anticipates the lockdown to have had an impact on the revenue and profitability for the first quarter of FY21.

The company has only been awarded projects from the government. It resumed bidding for new projects and was able to secure a few, as seen for May 2020. The company is optimistic that henceforth, the new orders and ongoing projects would run smoothly and it is also not facing much resistance anymore for inputs as the supply chain is gradually improving.

NCC's stock opened gap up 9.4 per cent at Rs 28 from its previous close of Rs 25.60 on Tuesday, on BSE.