NBCC (India) Ltd secure orders worth Rs 204.49 crore

NBCC (India) Limited, on Monday after the market hours, informed the bourses that it has secured two orders worth Rs 204.49 crore on project management consultant (PMC) basis.

The order comprises the construction of police headquarters in Seychelles (East Africa), amounting to Rs 104.19 crore. The second work order includes the construction of an attorney general’s office project in Seychelles, amounting to Rs 100.30 crore.

This is the first order win of the company for the month of July 2020. In the last month i.e. June 2020, the company had secured orders worth Rs 431.63 crore from BHEL and IIT.

The company has a robust order book of Rs 70,000 crore, which is 13x of its FY20 revenue. However, the major issue is that only projects worth ~Rs 13,000 crore have been awarded. The remaining orders are facing issues like delays in government approvals and litigation issues, which are causing further trouble for the company. Going ahead, the company expects more orders worth ~Rs 33,000 crore for FY21E.

Looking at the return history, NBCC has delivered a negative return of ~34 per cent in the last six months on BSE.