NCC (500294) Q2 24/25 earnings summary

Executive summary

• Order book at end of September 2024 stands at INR 52,370 crores, with Q2FY25 order inflow of INR 4,760 crores and a strong pipeline of over INR 210,000 crores in prospective projects.

• Consolidated Q2FY25 revenue reached INR 5,224 crores, up 10.1% year-over-year, with PAT at INR 163 crores and EBITDA at INR 443 crores.

• Standalone Q2FY25 revenue was INR 4,480 crores, with PAT at INR 161 crores and EBITDA at INR 401 crores, both showing strong year-over-year growth.

• Major divisions include buildings (INR 19,486 crores), transportation (INR 11,151 crores), electrical (INR 10,931 crores), and water (INR 6,071 crores) as of September end.

• Major projects span buildings, transportation, water, railways, electrical, irrigation, mining, and metro rail sectors.

Financial highlights

• Consolidated H1FY25 revenue at INR 10,783 crores, PAT at INR 373 crores, and EBITDA at INR 912 crores.

• Standalone H1FY25 revenue at INR 9,227 crores, PAT at INR 361 crores, and EBITDA at INR 841 crores.

• Standalone gross margin for Q2 was 15.15% (up from 11.7% YoY); H1 gross margin at 14.96% (up from 13.44% YoY).

• Consolidated Q2 EBITDA margin at 9%, PAT margin at 3.6%, and standalone EBITDA margin at 9.0%.

• Pachhwara Coal Mining SPV contributed INR 1,350 crores revenue and INR 53 crores PBT in H1FY25.

Outlook and guidance

• Management maintains FY25 guidance: order inflow of INR 20,000–22,000 crores, revenue growth above 15%, and EBITDA margin of 9.5–10%.

• Confident in achieving FY25 guidance for order inflow, revenue growth, and EBITDA margin despite H1 shortfall due to weather-related delays.

• Management expects majority of Jal Jeevan Mission (JJM) UP projects to be completed by March 2025, with minor spillover to June.

• Debt expected to reduce to INR 500 crores by year-end, supported by strong Q4 collections.

• Strong order inflow and robust order book position the company for continued growth in the coming quarters.