NBCC India Secures ₹350 Crore Project Management Contract from Heavy Vehicles Factory

State-owned NBCC (India) Ltd announced on Friday that it has been awarded a substantial work order worth ₹350.31 crore from the Heavy Vehicles Factory (HVF). The contract is for providing project management consultancy (PMC) services to execute major capital civil works at the HVF and AVNL Estate. This order, received in the normal course of business, pertains to domestic project management work and excludes Goods and Services Tax (GST).

This new contract further strengthens NBCC's extensive portfolio of infrastructure development projects. It follows recent significant agreements, including a Memorandum of Understanding (MoU) signed in September with Rajasthan State Industrial Development and Investment Corporation (RIICO) for infrastructure projects valued at approximately ₹3,700 crore near Jaipur International Airport, and another agreement with HUDCO for executing four construction projects nationwide.

Financially, NBCC had reported a healthy 26% year-on-year increase in its consolidated profit to ₹132 crore for the June quarter, driven by robust revenue growth and effective operational management.

Impact: This order is expected to positively impact NBCC (India) Ltd by expanding its order book and reinforcing its expertise in project management and civil works. It can lead to increased revenue and potentially boost investor confidence, reflecting positively on its stock performance. Rating: 7/10

Difficult Terms: Project Management Consultancy (PMC): Services offered by a company that manages construction or development projects on behalf of the client, ensuring they are completed on time, within budget, and to required standards. Heavy Vehicles Factory (HVF): A manufacturing unit that produces heavy vehicles, typically for defense or industrial purposes. AVNL Estate: An area or complex belonging to or associated with AVNL (likely referring to an associated entity or a specific named estate). Memorandum of Understanding (MoU): A formal agreement between two or more parties outlining the common line of action or understanding. Consolidated Profit: The total profit of a company, including the profits of its subsidiaries.