NCC Q1 Review - Execution To Recover; Land Sale To Infuse Liquidity: Centrum Broking
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Centrum Broking Report
NCC Ltd.’s Q1 FY22 results remained impacted by Covid-19 second wave on execution.
Also, margins were lower due to lower execution and higher input costs.
Profit after tax at Rs 517 million was in line with estimate of Rs 492 million, with the impact of lower margins being offset by interest cost savings.
Year-to-date FY22 order inflow of Rs 48.5 billion has been strong.
Order backlog of ~Rs 375 billion (4.7 times trailing twelve months revenue) provides strong execution visibility and we expect a strong recovery in revenue run rate, going forward.
Deal contours for Vizag land sale are crystallised and NCC expects total consideration of Rs 3.75 billion.
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