- Standalone Revenue: INR 4,747 crores, a growth of 41% YoY.
- Standalone Gross Profit: INR 727.60 crores, a growth of 24% YoY.
- Standalone EBITDA: INR 479.33 crores, an increase of 37.42% YoY.
- Standalone PAT: INR 212.82 crores, an increase of 42% YoY.
- Standalone Nine-Month Revenue: INR 12,868.39 crores, a growth of 39% YoY.
- Standalone Nine-Month Gross Profit: INR 1,819 crores, a growth of 18.47% YoY.
- Standalone Nine-Month EBITDA: INR 1,138.44 crores, a growth of 24% YoY.
- Standalone Nine-Month PAT: INR 444.12 crores.
- Standalone Cash Flow from Operating Activities: INR 114 crores.
- Consolidated Revenue: INR 5,250 crores, a growth of 34% YoY.
- Consolidated Gross Profit: INR 764.85 crores, a growth of 26.15% YoY.
- Consolidated EBITDA: INR 505 crores, a growth of 34% YoY.
- Consolidated PAT: INR 230.96 crores, a growth of 37.2% YoY.
- Consolidated Nine-Month Revenue: INR 14,350 crores, a growth of 35.4% YoY.
- Consolidated Nine-Month Gross Profit: Growth of 17.31% YoY.
- Consolidated Nine-Month EBITDA: Growth of 22.5% YoY.
- Consolidated Nine-Month PAT: Growth of 13.2% YoY.
- Order Book: INR 61,786 crores at the beginning of the quarter; INR 57,440 crores at the end of the quarter.
- New Orders Received in Q3: INR 786 crores.
- Orders Executed in Q3: INR 5,151 crores.
- Target Orders for FY24: INR 26,000 crores; secured INR 21,238 crores in nine months.
- CapEx: INR 36 crores in Q3; INR 135 crores in nine months; expected to be below INR 200 crores for the year.
- Trade Receivables: Increased by INR 177 crores in nine months; 61 days outstanding.
- Working Capital: 29% of turnover; 92 days outstanding.
- Debt: Expected to be INR 1,300 crores to INR 1,500 crores by year-end.
- Credit Rating: IND A1+ positive for short-term loans.
Release Date: February 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NCC Ltd (BOM:500294, Financial) reported a 41% year-on-year revenue growth in Q3 FY24, driven primarily by buildings and electrical divisions.
- The company posted a 42% increase in PAT (Profit After Tax) for Q3 FY24 compared to the corresponding quarter of the previous year.
- NCC Ltd (BOM:500294) has a robust order book of INR 57,440 crores, with a target to achieve INR 26,000 crores in orders for the current year.
- The company has shown significant improvement in working capital management, reducing working capital days from 194 days in FY21 to 92 days by the end of December '23.
- NCC Ltd (BOM:500294) has secured new projects, including smart meter projects and UP Jal Jeevan projects, contributing significantly to the company's top line.
Negative Points
- The change in government in states like Telangana, Rajasthan, Chhattisgarh, and Madhya Pradesh has caused delays in order bookings and execution processes.
- The gross profit margin for the nine months period decreased to 14% from 16% in the previous year.
- The company's debt position remains high, with an expected debt level of INR 1,300 crores to INR 1,500 crores by the end of the fiscal year.
- There are ongoing legal disputes, including arbitration with Sembcorp and settlement discussions with TATA, which could impact financials.
- The company's exposure to the Dubai real estate project remains uncertain, with an investment of INR 220 crores and potential delays in monetization.
Q & A Highlights
Q: Congratulations on another robust quarter. For the nine months, we have seen 38% revenue growth. Can you provide guidance for the fourth quarter and full year? Also, can you clarify the order inflow for Q1?
A: We achieved about 35% growth over the previous year in the first nine months. For the fourth quarter, we expect a growth of 25% to 30%, and for the year as a whole, around 32% to 33%. Regarding order inflow, we have an L1 order of about INR4,000 crore and just received an LOA of INR1,250 crores, totaling INR5,250 crores.
Q: What is the outlook on debt for this year and the next year?
A: As of December 31, 2023, our debt stands at INR1,473 crores. By the end of the year, we expect it to be between INR1,300 crores to INR1,500 crores. For FY25, we aim to reduce debt to below INR1,000 crores, driven by lesser investment in SPVs and minimal CapEx.
Q: How much of the order book is executable in the next two to three years?
A: Approximately 80% to 85% of the order book is executable within the next two to three years.
Q: What is the total borrowings and cash at the stand-alone level?
A: The borrowings stand at INR1,473 crores. After considering cash and cash equivalents, it is around INR1,370 crores.
Q: Can you provide more clarity on the equity investment in smart meter SPVs?
A: The total equity requirement for the two SPVs is INR400 crores. NCC proposes to offload 50% to outsiders, reducing our requirement to INR100 crores, which will be invested over two to three years.
Q: What is the status of the Dubai real estate project?
A: The Harmony project in Dubai is being re-examined, and we have appointed consultants to take it up with RERA in Dubai. We expect the project to become live again with new investors showing interest. The current exposure is about INR220 crores.
Q: Are you open to more smart metering orders, and will you use a similar arrangement for raising funds at the SPV level?
A: Yes, we are open to more smart metering projects and will evaluate them on a case-by-case basis. We will continue to use similar arrangements for raising funds at the SPV level to avoid leveraging our balance sheet.
Q: What is the stand-alone order book as of the third quarter?
A: The stand-alone order book for the third quarter is INR50,154 crores.
Q: What portion of the order book is from smart meter projects?
A: The smart meter projects account for about INR3,660 crores of the order book.
Q: Can you provide details on the Jal Jeevan projects?
A: The total Jal Jeevan projects awarded to NCCL are about INR16,700 crores. We have executed 43% of the orders by December end and expect to complete another 5% by March end. The remaining 50% will take another year to complete.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
