NCC (500294) Q2 24/25 earnings summary

Executive summary

• Order book at end of September 2024 stands at INR 52,370 crores, with Q2 order inflow of INR 4,760 crores and a strong pipeline of over INR 210,000 crores in prospective projects.

• Consolidated Q2 FY25 revenue was INR 5,224 crore, up 10.1% year-over-year, with PAT at INR 163 crore and EBITDA at INR 443 crore.

• Standalone Q2 FY25 revenue reached INR 4,480 crore, with PAT at INR 161 crore and EBITDA at INR 401 crore.

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

• Major divisions include buildings, transportation, electrical, and water, with diversified order book across segments and geographies.

Financial highlights

• Consolidated H1 FY25 revenue was INR 10,783 crore, with PAT at INR 373 crore and EBITDA at INR 912 crore.

• Standalone H1 FY25 revenue was INR 9,227 crore, with PAT at INR 361 crore and EBITDA at INR 841 crore.

• Standalone gross margin for Q2 was 15.15% (up from 11.7% YoY); consolidated Q2 EBITDA margin at 9%, PAT margin at 3.6%.

• Basic and diluted EPS for Q2 (consolidated) was INR 2.60, H1 EPS was INR 5.94.

• Net debt at Q2 end was INR 1,528 crore (consolidated) and INR 1,624 crore (standalone); debt/equity ratio below 0.2.

Outlook and guidance

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

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

• 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.

• Continued focus on diversified order book and execution across multiple business verticals.