Eyeing EBITDA margins of 11% in FY22 : NCC

Construction major NCC on Wednesday said the company is looking at EBITDA (earnings before interest, taxes, depreciation, and amortization) margins of about 11 percent for FY22.

In an interview with CNBC-TV18, YD Murthy, executive vice president, finance, said the company had already bagged about Rs 8,000 crore of orders including the recent order of Rs 2,167 crore from Bengaluru Metro Rail Corporation, which have about three packages connecting to Bangalore Airport from the city centre.

"As far as order booking is concerned, we are on track. A lot of order award is happening particularly to develop physical infrastructure in various parts of the country, mainly because the government is giving importance to the implementation of the National Infrastructure Pipeline (NIP), which is giving good order accretion for the companies like us," Murthy said.

For the order awards that the company has won, NCC is looking at an EBITDA margin of 11-11.5 percent at a project level, Murthy said, "As far as the second quarter was concerned, the company had shown some depressed margins, which are likely to improve in the third and fourth quarter."

The total order book of the company is currently about Rs 40,000-41,000 crore and further order accretion is expected in the third quarter as well as in the fourth part of the current year, Murthy said, "The company were looking at a lot of building projects and some road projects."