Construction firm NCC eyeing fresh orders under Jal Jeevan Mission in FY25
Neerad Sharma, Head of Strategy at NCC, said the total orders from Jal Jeevan Mission currently stand at around ₹18,000 crore.
Hyderabad-based construction firm NCC, formerly known as Nagarjuna Construction Company, on February 8, reported a 40% rise in its consolidated net profit at ₹220.65 crore for the quarter ended December 31, driven by higher execution during the quarter.
In an interview with CNBC-TV18, Neerad Sharma, Head-Strategy at NCC said the company is eyeing some fresh contracts under the Jal Jeevan Mission. Currently, the company has Jal Jeevan Mission orders amounting to ₹18,000 crore.
In the interim budget presented in Parliament by Finance Minister Nirmala Sitharaman on February 1, the Jal Shakti Ministry received an allocation of ₹98,418 crore for the financial year 2025 (FY25), an increase from ₹96,549 crore allocated last year.
The flagship program of the ministry, the Jal Jeevan Mission, secured a significant portion, receiving 71% of the total allocation.
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“We continue to see a healthy pipeline of projects in this space and on a case-to-case basis we are bidding for these projects, and we are hopeful of bagging at least a couple of them in the next financial year,” Sharma said.
The revenue of the construction and infrastructure company grew nearly 35% year-on-year (YoY) in the third quarter (Q3FY24) to ₹5,260 crore from ₹3,909.6 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) also grew around 34% YoY to ₹505.4 crore from ₹376.4 crore. EBITDA margin was steady at 9.6%. Profit after tax (PAT) increased 37% YoY to ₹230.9 crore from ₹168.3 crore.
NCC's main focus lies in constructing industrial and commercial structures, as well as roads, bridges, and flyovers. The company also undertakes projects in housing, power transmission, irrigation, and hydrothermal power. Internationally, NCC operates in Oman and the United Arab Emirates.
The stock has gained more than 135% in a year. The company has a market capitalisation of ₹13,687.06 crore.
(with input from agencies)
For the entire interview, watch the accompanying video
(Edited by : Shweta Mungre)
First Published: Feb 13, 2024 2:18 PM IST
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