NBCC stock snaps a 7-day losing streak, locked in 5% upper circuit after PAT grows 59% YoY in Q3

Following seven consecutive days of weak performance, resulting in a nearly 26.3% decline in value, shares of NBCC (India), the state-owned construction firm, hit the 5% upper circuit limit, reaching ₹130.60 apiece in today's trade. 

Investors responded positively to the company's performance in the December quarter, released after market hours on Tuesday.

NBCC posted a 59% improvement in its consolidated net profit at ₹113.56 crore. In the same period last year, the company reported a net profit of ₹71.49 crore. The consolidated revenue from the operations during the reporting quarter jumped to ₹2,471.51 crore from ₹2,191.24 crore in Q3FY23, which is an increase of 12.80%. 

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The revenue from its PMC segment, which accounts for the company's 90% revenue, rose to ₹2,241 crore from ₹1,950 crore in Q3FY23, while the revenue from the real estate and EPC segments came in at ₹33 crore and ₹130 crore, respectively. 

The operating profit jumped to ₹119 crore, a 41.6% YoY jump, while the EBITDA margin expanded by 400 basis points to 18% in Q3FY24.

During the first nine months of the current fiscal year, the company's net profit soared to ₹273 crore from ₹164 crore in the year-ago period. Additionally, its total revenue increased to ₹6,566 crore in the first nine months of this fiscal, compared to ₹6,118 crore in the corresponding period of the previous year.

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On the back of strong order wins from the government, the stock rewarded its shareholders with a return of 167.90% in just six months, and it gained 275% in the last one year. Taking the stock's April 2020 low of ₹15.90 apiece into account, it has skyrocketed 721% to date. 

On January 10, the company bagged a contract from the National Institute of Fashion Technology for the construction of the NIFT campus at Varanasi, Uttar Pradesh. The order value is worth ₹218 crore. 

In December, the company secured a contract from the Delhi Metro Rail Corporation Ltd. (DMRC) to construct a staff quarter residential building. The total cost of the order is ₹88.90 crore. 

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Established in 1960 as the construction arm of the Government of India, NBCC achieved 'Navratna' status in 2014. Its core operations span across three primary segments: project management consultancy (PMC), real estate development, and EPC contracting.

The real estate segment includes residential projects like apartments and townships, as well as commercial projects such as corporate office buildings and shopping malls.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.