NCC’s strong order book to boost 25% top line growth this fiscal
Hyderabad: Hyderabad-based NCC Limited is seeing an uptick in project activity in the infrastructure sector, which is evident with robust orders the company is bagging across the country month after month. The company is hoping for 25 per cent top line growth this fiscal on the back of this momentum. NCC last week won three […]
Hyderabad: Hyderabad-based NCC Limited is seeing an uptick in project activity in the infrastructure sector, which is evident with robust orders the company is bagging across the country month after month. The company is hoping for 25 per cent top line growth this fiscal on the back of this momentum.
NCC last week won three new contract orders from Bangalore Metro Rail Limited totaling to Rs 2,167 crore, pertaining to the Building division. The three packages put together will spread over a 37 km stretch of the project, which are expected to be executed in the next 27-30 months. Last month, the company bagged a new order for Rs 442 crore pertaining to its Mining division.
NCC executive vice president-Finance, YD Murthy told Telangana Today, “We are expecting a good growth in our top line for FY22, parallel to the economic growth that the country is witnessing at about 9-9.5 per cent. We are expecting a top line growth of 25 per cent this fiscal compared to previous fiscal, as there is an increased momentum in the sector.”
NIP push
The government is giving importance to the development of physical infrastructure. There is a focus on implementing National Infrastructure Pipeline (NIP) with an outlay of Rs 110 lakh crore spread over next five years, which is opening up several new opportunities.
“A lot of order accretion is going to be there for construction companies like us through NIP, going forward. In addition to this, normalcy is returning after the second wave of Covid-19. We have an order book of Rs 40,000 crore,” Murthy said.
The company is bidding for projects across India, operating in 27 States, with a decentralised structure of bidding for projects. NCC is doing projects for Central agencies such as Airports Authority of India, AIIMs and defence sector agencies.
He added, “Execution of projects is picking up substantially with the increased availability of labour and raw material. In the first quarter of this fiscal, we have reported top line growth of 57 per cent compared to first quarter of previous fiscal, primarily due to the base effect as Q1FY2021 was a wash out. In the second quarter of this fiscal, we have reported 41 per cent growth compared to the corresponding quarter of the last year.”
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