Indian PSU Navratna Secures Rs 200 Crore Order from Oil India; Subsidiary Bags Rs 98 Crore Project

Indian PSU Navratna Lands Rs 200 Crore Order from Oil India, Subsidiary Wins Rs 98 Crore Project for Maharashtra's Medical Colleges

NBCC (India) Limited and its subsidiary HSCC (India) Limited have been awarded significant projects. NBCC will construct a new hospital for Oil India Limited in Assam, valued at Rs 200.6 crores. HSCC, a wholly owned subsidiary of NBCC, will set up an E-Library for 22 medical colleges in Maharashtra worth Rs 98.17 crores. These projects showcase the company's continued involvement in healthcare and education infrastructure.

Strong Financial Performance for Q2 FY24-25

For Q2 FY 2024-25, NBCC reported a 15 per cent increase in operating income, totaling Rs 1,865 crores. Profit After Tax (PAT) grew by 45 per cent to Rs 124 crores. In the first half of the fiscal year, the company saw a 13 per cent rise in operating income to Rs 3,492 crores and a 42 per cent jump in PAT to Rs 210 crores, reflecting strong financial performance.

Large Order Book and High Project Inflows

NBCC’s consolidated order book stands at Rs 84,400 crores, with most of it coming from the company's PMC/EPC and redevelopment projects. In the first half of the year, the company secured new projects worth Rs 28,000 crores, including high-value ones like a satellite township in Srinagar valued at Rs 15,000 crores.

Upcoming Projects and Real Estate Focus

NBCC is focusing on completing stalled real estate projects, particularly in NCR and Mumbai. The company is expected to take on Supertech’s stalled projects and has plans for major land redevelopment. Redevelopment projects like GPRA and Nauroji Nagar are nearing completion, and NBCC also focuses on land monetization.

Stock Performance and Market Returns

NBCC has seen impressive stock performance, delivering a return of 75 per cent year-to-date and 94 per cent over the past year. This growth reflects the market’s positive outlook on the company’s strong financials and robust order book.

Outlook and Guidance for the Future

NBCC targets Rs 13,000 crores in consolidated revenue for the full year, with PAT expected to exceed Rs 400 crores. The company is optimistic about securing more orders and aiming for an order book target of Rs 1 lakh crore by year-end. It expects a stable margin outlook with cash flow projections remaining strong.

Challenges and Future Prospects

NBCC acknowledges the challenges of executing large redevelopment projects and navigating stalled projects. However, the company remains confident in its strategic direction and aims to leverage its strong order pipeline and upcoming construction season to drive growth.

Disclaimer: The article is for informational purposes only and not investment advice.