Dolat Capital: NCC Posts Another Bad Quarter, Though In Line
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
NCC Ltd. reported results in line with estimates on all fronts. NCC posted weak set of numbers with 46.1%, 56.6% and 79.2% YoY de-growth in revenue, Ebitda and profit after tax to Rs 11.8 billion, Rs 1.2 billion and Rs 169 million respectively due to muted execution amid Covid-19 lockdown.
After adjusting for tax credit of Rs 320.3 million, adjusted profit after tax reported a loss of Rs 151 million versus profit of Rs 813 million (Q1 FY20).
We maintain our estimates for FY21E/FY22E considering in-line Q1 FY21 quarter and in-line order inflows as on date. NCC is likely to post 15.9% de-growth in FY21E revenue and 19.2% growth in FY22E.
The management has refrained from giving any revenue or margin guidance for FY21E, however, expects performance to improve sequentially going forward.
Though increasing labour availability and execution levels is positive for the company, we expect NCC to still report decline on top line and bottom line for Q2 FY21E and Q3 FY21E likely to be a flattish quarter.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.