NBCC surge with gain of Rs. 5828 crores project from AIIMS

National Buildings Construction Corporation (NBCC) has announced that All India Institute of Medical Science (AIIMS) has issued a letter of award to them for the redevelopment of the AIIMS Western Campus, New Delhi.

The contract involves a construction of 3000 flats in 2.5 years time. The financial implication of the whole project will be Rs.5828 crore. NBCC would be charging 10 percent of the final project cost as Project Management Consultancy (PMC) fee and 1 percent for the marketing expenses on the total fund realization for the sale/lease of the built up area totally, which will be around Rs.650 crores. A Memorandum of understanding (MoU) between NBCC and AIIMS will be signed after the project approval by the Union Cabinet.

The total order of NBCC for FY16 is of around Rs.30,000 crores excluding the current AIIMS campus project. The order book for the year ending FY15 was around Rs.20,000 crores which is showing good growth of the company.

The net revenue from the operations for year ending 2015 is Rs.4674.14 crores an increase of 14 percent on yearly basis. The net profit of the company increased by 8 percent for the same period showing good operational efficiency and financial implications.

With the current order book and a gain of new order NBCC can perform well in FY16. The stock of the company surged by 6.18 per cent from the last closing price on Tuesday to Rs.995.45.

NBCC is an India-based company, which provides civil engineering construction services. The Company operates through three business segments: Project Management Consultancy, Real Estate Development, and Engineering, Procurement and Construction (EPC) Contracting.