Introduction:
NCC Ltd., a outstanding participant inside the infrastructure and construction zone, has reaffirmed its sales increase goal of 15% for the cutting-edge financial year. This decision comes on the heels of a robust performance in Q1, which saw one of the strongest first-zone revenues in latest years, no matter a slowdown in new order inflows because of the Lok Sabha elections.
In a recent interview with NDTV Profit, Neerad Sharma, Head of Strategy and Investor Relations at NCC Ltd., underscored the company’s confidence in achieving its revenue growth target. Sharma attributed the strong Q1 results to the company’s effective execution strategies, despite the model code of conduct during the elections that impacted the pace of new project awards.
Sharma highlighted that while new order inflows were subdued in the first quarter due to the elections, the company has managed to secure a significant portion of its order inflow guidance for FY25. NCC Ltd. expects order inflows to fall between Rs 20,000 crore and Rs 22,000 crore for the fiscal year. Impressively, the company has already secured 44% to 45% of the lower end of this range within the first quarter alone.
NCC Ltd. Maintains 15% Revenue Growth Target for FY25 After Strong Q1 Performance:
The company’s current order book stands at Rs 52,626 crore, with plans to execute 85% to 90% of this amount by the end of FY25. Notably, NCC Ltd. has made substantial progress on its Jal Jeevan Mission Project, having executed a significant portion of the Rs 6,900 crore order book. Sharma expressed confidence that the remaining portion of the project will be completed on or ahead of schedule.
In addition to its ongoing projects, NCC Ltd. has recently secured three new smart metering projects totaling Rs 8,080 crore. These projects are spread across Maharashtra and Bihar, with the trials for smart meters already underway.
Sharma also provided insights into the company’s capital expenditure plans, which are set at approximately Rs 450 crore for the fiscal year ending March 2025. The majority of this expenditure is expected to be directed towards the company’s four major business segments: buildings, transportation, electrical T&D, and water.
Conclusion:
Overall, NCC Ltd.’s reaffirmation of its 15% revenue growth guidance, coupled with a strong Q1 performance and a promising project pipeline, reflects the company’s robust position and optimistic outlook for FY25.
FAQ:
1. What is NCC Ltd.’s revenue guidance for FY25?
- NCC Ltd. has maintained its revenue growth guidance at 15% for the current financial year (FY25). This target reflects the company’s confidence in achieving significant revenue growth despite recent challenges.
2. How did NCC Ltd. perform in Q1 of FY25?
- In Q1 FY25, NCC Ltd. reported one of its strongest first-quarter revenues in recent years. This performance came despite a slowdown in new order inflows due to the Lok Sabha elections.
3. What factors influenced the new order inflows in Q1?
- The model code of conduct during the Lok Sabha elections led to a sluggish pace in new project awards. Government activities generally slow down during elections, impacting new order inflows.
4. What is the company’s current order inflow guidance for FY25?
- NCC Ltd. projects its order inflows for FY25 to be in the range of Rs 20,000 crore to Rs 22,000 crore. As of Q1, the company has achieved 44% to 45% of the lower end of this guidance.
5. How much of the order book does NCC Ltd. plan to execute in FY25?
- NCC Ltd. plans to execute approximately 85% to 90% of its total order book, which amounts to Rs 52,626 crore, by the end of FY25.
6. What is the status of the Jal Jeevan Mission Project?
- The company has made significant progress on the Jal Jeevan Mission Project, having executed a substantial portion of the Rs 6,900 crore order book. The remaining work is expected to be completed on time or ahead of schedule.
7. Can you provide details about the new smart metering projects?
- NCC Ltd. has secured three new smart metering projects totaling Rs 8,080 crore. Two of these projects are in Maharashtra (Rs 5,700 crore) and one is in Bihar (Rs 2,300 crore). Trials for the smart meters in Bihar have already begun, with trials in Maharashtra expected to follow soon.
8. What are the company’s capital expenditure plans for FY25?
- The capital expenditure plan for FY25 is approximately Rs 450 crore. The majority of this expenditure will be allocated to the company’s four major business segments: buildings, transportation, electrical T&D, and water.
9. How has NCC Ltd. been performing in terms of growth over the past few years?
- Over the last three fiscal years, NCC Ltd. has consistently delivered revenue growth exceeding 30% annually, providing a solid base for the 15% revenue growth target for FY25.
10. What is the company’s outlook for the remainder of FY25?
- NCC Ltd. remains optimistic about achieving its revenue and order inflow targets for FY25, supported by a strong project pipeline and ongoing execution of major projects.
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