Shares of NBCC (India) jumped over 11% in intraday trading on Friday after the company announced it had secured a massive order worth ₹15,000 crore from the Srinagar Development Authority.
According to a stock exchange filing, NBCC said the project involves developing a Satellite Township over 406 acres in Rakh-e-Gund Akshah, Bemina, Srinagar (J&K). The MoU was signed by Owais Ahmed from SDA and Sanjay Gupta from NBCC. The site is located near the upcoming Medi City and the High Court Complex. NBCC will manage and market the project from ‘concept to commissioning.’
The stock climbed as much as 11.6% to a day’s high of ₹188.50, which is now just 5% below its record high of ₹198.25, reached on July 9, 2024. The stock has surged over 304% from its 52-week low of ₹46.61 on August 14, 2023. Over the past year, the stock has risen 246%, and it has gained 131% so far in 2024.
The project will be completed in phases over five years and will include residential plots, villas, apartments, commercial offices, an indoor sports center, and 5-star resorts with modern facilities. Media reports also mention that around 3,200 affordable housing flats, each 45 sqm, are planned. The project’s development costs, including infrastructure, facilities, and affordable housing units, will be covered by the revenue from the sale of the proposed villas and commercial spaces.
Once completed, the project is expected to serve as the New Town Centre for Srinagar residents and a tourist hub, according to a company spokesperson.
Additionally, on August 1, NBCC received another order from the Ministry of External Affairs to build a regional passport office in Srinagar, J&K, valued at ₹50 crore.
Earnings
In Q4FY24, NBCC’s profit rose 24.6% year-on-year to ₹141.5 crore, up from ₹113.6 crore in the same quarter the previous year (Q4FY23).
The company’s revenue increased by 43% year-on-year to ₹4,025 crore in Q4FY24, compared to ₹2,814 crore in Q4FY23. Operating profit (EBITDA) more than doubled to ₹240.2 crore in Q4FY24, up from ₹104.5 crore in Q4FY23. The EBITDA margin improved by 230 basis points to 6% in the March quarter of FY24, compared to 3.7% in Q4FY23.
NBCC is a construction company that offers project management consultancy, real estate, engineering procurement, construction, civil engineering, and redevelopment services. The company also provides water treatment plants, water supply networks, including raw water mains, and solid waste management solutions.
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