(Reuters) – Indian infrastructure firm NCC on Thursday reported a 12.5% drop in third-quarter profit, impacted by slow execution of orders.
The company’s consolidated net profit fell to 1.93 billion rupees ($22.04 million) in the quarter ended Dec. 31 from 2.21 billion rupees a year ago.
Revenue from operations rose 1.61% to 53.45 billion rupees, compared to a 36.6% growth in the same quarter year ago.
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KEY CONTEXT
Analysts said revenue growth remained modest as road engineering, procurement and construction players faced weak order books and sluggish execution. Margin pressure and project delays added to the challenges.
NCC’s order executions slowed during pre-elections in Maharashtra, brokerage Elara Capital said.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBITD Revenue Profit Mean # of Stock to Div
A growth (%) growth (%) rating* analyst price yield
s target** (%)
NCC 12.07 6.62 14.32 28.29 Buy 10 0.64 0.94
KNR Constructions 16.41 10.13 11.77 -12.93 Buy 14 0.85 0.09
PNC Infratech 11.30 14.84 12.18 -2.91 Buy 14 0.69 0.20
Ashoka Buildcon 17.30 15.08 7.34 37.55 Buy 9 0.89 –
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
OCTOBER-DECEMBER STOCK PERFORMANCE
— All data from LSEG IBES
— $1 = 87.5520 Indian rupees
(Reporting by Yagnoseni Das in Bengaluru; Editing by Savio D’Souza)
