India's NCC Q2 profit more than doubles on higher order inflows
Nov 7 (Reuters) -Indian infrastructure firm NCC NCCL.NS on Thursday reported its profit more than doubled in the second quarter, helped by higher order inflows.
Consolidated net profit rose to 1.63 billion rupees ($19.3 million) for the quarter ended Sept. 30 from 773.4 million rupees a year ago.
Revenue from operations rose 10.1% to 51.96 billion rupees. While total expenses rose 7.6% to 49.74 billion rupees, the cost of materials consumed, which forms more than a third of expenses, fell 1.2%.
For further result highlights, click nFWN3ME0Q2
KEY CONTEXT
In the July-September period, NCC saw healthy order inflows worth 35 billion rupees, led by buildings and transportation orders, analysts at Elara Capital said in a pre-earnings note.
Construction companies also benefited from lower prices of key raw materials. Domestic steel prices dropped to an over three-year low in the quarter, per data from commodities consultancy BigMint. Cement prices hit a five-year low in the quarter amid ample supply, according to Ambit Capital.
PEER COMPARISON
Valuation (next 12 months) | Estimates (next 12 months) | Analysts' sentiment | |||||||
RIC | PE | EV/EBITDA | Revenue growth | Profit growth | Mean rating* | No of analysts | Stock to price target** | Div yield (%) | |
NCC | NCCL.NS | NULL | 8.61 | 15.77 | 32.04 | Buy | 10 | 0.87 | 0.71 |
KNR Constructions | KNRL.NS | 18.95 | 12.99 | 6.84 | 1.25 | Buy | 13 | 0.90 | 0.08 |
PNC Infratech | PNCI.NS | 11.59 | 13.64 | 1.14 | -4.77 | Buy | 14 | 0.66 | 0.18 |
Ashoka Buildcon | ABDL.NS | 14.50 | 13.61 | 7.76 | 47.41 | Buy | 8 | 0.97 | Null |
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPTEMBER STOCK PERFORMANCE
-- All data from LSEG IBES
-- $1 = 84.3340 Indian rupees
NCC Sept Qtr 2024 vs Peers https://tmsnrt.rs/48LKfow
Reporting by Ashish Chandra in Bengaluru; Editing by Eileen Soreng
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