NCC (500294) Q2 24/25 earnings summary

Executive summary

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

• Achieved consolidated Q2 FY25 revenue of INR 5,224.36 crores, up 10.1% year-over-year, with PAT at INR 162.96 crores and EBITDA at INR 442.95 crores.

• Standalone Q2 FY25 revenue reached INR 4,480.03 crores, a 3.9% increase year-over-year, with PAT at INR 160.55 crores and EBITDA at INR 401.18 crores.

• Order inflow for Q2 FY25 stood at INR 4,760 crores, with a diversified order book across segments and geographies.

• Significant project activity in buildings, transportation, electrical, and water divisions, with Jal Jeevan Mission (JJM) projects remaining a key focus.

Financial highlights

• Consolidated H1 FY25 revenue was INR 10,783 crores, with PAT at INR 373 crores and EBITDA at INR 920.86 crores.

• Standalone H1 FY25 revenue was INR 9,227 crores, with PAT at INR 361.29 crores and EBITDA at INR 840.82 crores.

• Standalone gross margin for Q2 FY25: 15.15% (up from 11.70% YoY); H1 FY25: 14.96% (up from 13.44% YoY).

• Consolidated Q2 FY25 EBITDA margin: 9%; PAT margin: 3.6% (standalone), 3.1% (consolidated).

• Q2 profitability impacted by lower turnover in water and smart meter projects due to weather and approval delays.

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 challenges.

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

• Management expects to complete majority of JJM UP projects by March 2025, with minor spillover to June 2025.

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