NCC (500294) Q3 24/25 earnings summary

Executive summary

• Order book at end of December 2024 stands at ₹55,548 crore, with a healthy prospective pipeline of over ₹2.4 lakh crore across all verticals and states.

• Second largest listed construction company by revenue with a diversified business model and pan-India presence.

• Revenue growth guidance for FY25 revised down to 5% due to execution slowdowns from elections and elongated billing/payment cycles.

• Group structure includes construction, coal mining, and real estate, with 86% of revenue from construction.

• Board approved unaudited standalone and consolidated financial results for Q3 and nine months ended 31 December 2024.

Financial highlights

• Standalone Q3 FY25 revenue: ₹4,720 crore (vs ₹4,773 crore YoY); consolidated Q3 revenue: ₹5,383 crore (vs ₹5,288 crore YoY); Q3 PAT: ₹185 crore standalone, ₹193 crore consolidated.

• Nine-month standalone revenue: ₹13,947 crore (vs ₹12,951 crore YoY); consolidated: ₹16,166 crore (vs ₹14,441 crore YoY); nine-month net profit: ₹546.69 crore standalone, ₹566.06 crore consolidated.

• Standalone Q3 EBITDA margin: 8.77% (vs 10.1% YoY); consolidated Q3 EBITDA margin: 8.25% (vs 9.61% YoY); PAT margin: 3.59% (vs 4.17% YoY).

• Debt increased to ₹2,415 crore at Q3 end (net debt: ₹2,343 crore), up ₹680 crore from Q2; consolidated net worth at ₹6,167 crore as of 9MFY25.

• Earnings per share for Q3FY25 at ₹2.95 (standalone) and ₹3.08 (consolidated).

Outlook and guidance

• FY25 revenue growth guidance revised to 5% (from 15%+ earlier); Q4 expected to see flat or slight YoY degrowth.

• Order inflow in Q3 was ₹8,440 crore; consolidated order book at ₹55,548 crore as of 31 December 2024.

• EBITDA margin for FY25 guided at 9.25%, with Q4 expected at 9.5%.

• FY26 guidance to be provided post annual results; management expects improvement as execution normalizes post-elections.

• Achieved rated capacity of 15 MTPA at Pachhwara coal mine; project value increased to ₹50,000 crore.