NBCC (India), the state-owned construction firm, experienced a 5.6% surge in its stock during early trade, reaching a fresh 52-week high of ₹84.75 apiece. This spike followed the company’s announcement of securing a significant order valued at ₹1,500 crore. In an exchange filing on Wednesday, NBCC revealed that it had received the work order from the National Cooperative Development Corporation (NCDC) and Primary Agriculture Cooperative Society (PACS) in various states.
The awarded order pertains to the construction of 1,469 warehouses and other agri-infrastructure as part of the World’s Largest Grain Storage Plan in the cooperative sector. The project is set to be executed at multiple locations across India.
This year has seen NBCC clinch substantial contracts, including a noteworthy ₹749.28 crore contract in May from the Ministry of Housing and Urban Affairs (MOHUA) for the development of Government of India presses located in Mayapuri, Rashtrapati Bhawan (Delhi), Nashik, and Kolkata.
In March, the company secured a ₹500 crore work order from the Government of Puducherry for the construction of a government medical college and hospital in Karaikal.
Established in 1960 as the construction arm of the Government of India, NBCC achieved ‘Navratna’ company status in 2014. Its operations span three primary segments: project management consultancy (PMC), real estate development (RED), and EPC contracting. PMC contributes to 93% of NBCC’s annual revenue, with RED and EPC accounting for 4% and 3%, respectively.
The stock has witnessed a remarkable 115% increase this year, making a strong recovery after a lackluster performance from December to February. Over the next nine months, it recorded gains in eight, with July being the most significant monthly gainer at 16.54%.
For the September-ending quarter (Q2FY24), NBCC reported a consolidated net profit of ₹82 crore, compared to ₹98 crore in the corresponding quarter last year. The company posted a net profit of ₹77 crore in the preceding June quarter. Q2 FY24 revenue from operations stood at ₹2,053 crore, a slight decrease from ₹2,136 crore in the same quarter of the previous fiscal. The operating profit increased by 9% to ₹96 crore in Q2, compared to ₹88 crore in the year-ago quarter.
As of 12:15 PM, the stock was trading at ₹83.25 apiece, reflecting a gain of 3.87%.
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