Whalesbook
NBCC India announced it has secured a new order worth ₹498.3 crore from Damodar Valley Corporation for constructing an integrated township in Jharkhand. This comes as the company reported a significant 26% year-on-year increase in its September quarter net profit to ₹153.5 crore, with revenue growing by 19% to ₹2910.2 crore. The board also approved a second interim dividend of ₹0.21 per share for FY26. The stock saw a 1% gain on Monday.
NBCC (India) Ltd. shares experienced a rise on Monday following the announcement of a significant new order. The company has won a project management consultancy contract valued at ₹498.3 crore from Damodar Valley Corporation. This order is for the construction of an integrated township at the Chandrapura Thermal Power Station in Jharkhand.
In addition to the new contract, NBCC India also released its financial results for the September quarter (Q2 FY25). The company reported a net profit of ₹153.5 crore, marking a 26% increase compared to ₹122 crore in the same quarter last year. Revenue from operations saw a healthy jump of 19%, reaching ₹2910.2 crore in Q2 FY25, up from ₹2,446 crore in the prior year's quarter.
The company's earnings before interest, tax, depreciation, and amortisation (EBITDA) saw a marginal increase to ₹100.8 crore from ₹100.3 crore year-on-year. However, its operating margins contracted slightly to 3.5% from 4% in the corresponding period last year.
Further benefiting shareholders, the NBCC board approved a second interim dividend for the financial year 2026 at a rate of ₹0.21 per share. The record date for determining the eligibility of shareholders for this dividend is November 19.
The stock reacted positively to the news, trading up 1% at ₹115.3 per share around 1:10 PM. Year-to-date, NBCC India shares have appreciated by 24.1%.
Impact
This news is positive for NBCC India investors. The new order provides visibility for future revenue streams, while the strong quarterly earnings and dividend announcement enhance shareholder returns and confidence. The market reaction indicates investor approval of the company's performance and growth prospects.
Rating: 7/10
Difficult Terms Explained:
Project Management Consultancy: This refers to services where a company manages and oversees a construction project on behalf of the client, ensuring it is completed on time, within budget, and to the required quality standards.
Integrated Township: A planned development that combines residential areas with commercial facilities, schools, healthcare, and recreational spaces, aiming to create a self-sufficient community.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A financial metric used to assess a company's operational profitability before accounting for financing decisions, accounting depreciation, and tax effects.
Operating Margins: A profitability ratio that indicates the percentage of revenue remaining after deducting the cost of goods sold and operating expenses. It shows how efficiently a company manages its operations.
Interim Dividend: A dividend payment made by a company to its shareholders during the financial year, before the final annual dividend is declared.
Record Date: The specified date by which an investor must be registered as a shareholder of a company to be eligible to receive a declared dividend.
