NBCC marginally lowers revenue guidance for FY24, targets ₹25,000 crore in next 5 years

Riding on strong performance in the third quarter of the current financial year, state-owned construction firm NBCC expects to meet its revenue target of ₹10,000 crore in FY24. According to KP Mahadevaswamy, Chairman and Managing Director of NBCC, the public sector undertaking (PSU) is well positioned to meet its revenue target and it may further extend to ₹13,000 crore in the next financial year.

Speaking to CNBC-TV18 in an exclusive interview, Mahadevaswamy said, “For FY 2023–24, we will definitely cross more than ₹10,000. We have already achieved ₹6,300 crore up to the December quarter. So, we will definitely achieve another ₹4,000 crore during this last quarter.”

NBCC reported ₹2,412.6 crore in revenue in Q3FY24, up 13% from the year-ago period. Its net profit swelled 58.9% to ₹113.16 crore in the December quarter year-on-year.

Mahadevaswamy added that NBCC will close FY2024 with ₹500 crore profit and ₹650 crore EBITDA (earnings before interest, tax, depreciation and amortisation).

The revenue estimates for FY2024, however, are lower than NBCC’s earlier guidance of ₹ 11,000 crore. The NBCC CMD said that the drop in revenue estimates was due to the restrictions imposed on construction activities to tackle air pollution in Delhi-NCR and farmer strikes faced by its project in New Delhi.

However, Mahadevaswamy emphasised the projections for the next financial year remain unchanged and that the company will meet the target of ₹13,000 crore in revenue in FY25 with a net profit of ₹600-700 cores.

On being asked about NBCC's target for the next five years, Mahadevaswamy said that the company is targeting ₹25,000 crore revenue with a margin of over 5%.

"I have given ₹1,250 crore (margin), but we will definitely achieve more than that. It will be around ₹2,000 crore because we are starting our real estate projects where we will get a profit of around 25–30%, whereas in PMC we will get 6% to 7%. After the next five years our profit will be ₹2,000 crore,” he said.

NBCC share prices broke their weeklong bear run to hit the upper circuit for the second consecutive day on Thursday after Q3 results. Shares of NBCC Ltd closed 4.97% higher at ₹137.25 apiece on BSE.