Shares of NBCC (India), a state-owned construction firm, jumped 6.62% in early trade on Wednesday to hit a fresh 52-week high of ₹63.60 apiece after the company announced that it has signed an MoU with the Kerala State Housing Board.
This MoU is for the development of 17.9 acres of land parcel of Kerala State Housing Board at Marine Drive, Kochi, Kerala. The size of the order was approximately ₹2,000 crore, according to the company's regulatory filing.
On August 28, the company received a work order worth ₹66 crore from the Indian Medical Association for the planning, design, and execution of IMA Indian Medical at Indraprastha, IP Estate, New Delhi.
In another development on August 22, the company announced the signing of a Memorandum of Understanding (MoU) between NBCC and DMRC. The purpose of this MoU is to collaborate in the field of overseas building and infrastructure development.
Furthermore, in May, the company was awarded a significant order worth ₹749.28 crore from the Ministry of Housing and Urban Affairs (MOHUA). This order involves the development of Government of India presses located at Mayapuri, Rashtrapati Bhawan (Delhi), Nashik, and Kolkata.
Prior to this, on March 15, the company bagged a work order from the Government of Puducherry worth ₹500 crore for the construction of a government medical college and hospital at Karaikal in Puducherry, and the nature of the contract is project management consultant (PMC) on a deposit work basis.
Established in 1960 as the construction arm of the Government of India to execute civil engineering projects for the state governments, various central government ministries, and public and private sectors Achieved the status of 'Navratna' Company in 2014.
The company's areas of operation encompass three primary segments: Project Management Consultancy (PMC), Real Estate Development, and EPC Contracting. The PMC accounts for 93% of NBCC's annual revenue, with the remainder coming from RED and EPC, which account for 4% and 3%, respectively, its website shows.
The company shares this year so far have risen nearly 57%. Following three consecutive months of lackluster performance from December to February, the stock made a strong comeback. Over the next six months, it recorded gains in five of them, with July standing out as the biggest monthly gain at 16.54%.
For the June-ending quarter, the company posted a consolidated net profit of ₹77 crore, compared to a net loss of ₹5 crore in the corresponding quarter of last year. It posted a net profit of ₹114 crore in the preceding March quarter.
Revenue from operations surged to ₹1,918 crore in Q1 FY24, compared to ₹1,799 crore in a similar quarter last fiscal. The operating profit of the company came in at ₹57 crore in Q1, an increase of 9.61% when compared to ₹52 crore in the year-ago quarter.
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