NBCC's EBITDA margin contracts by 213 bps at 7.9%

National Buildings Construction Corporation (NBCC) has posted a consolidated net profit that has jumped by 5.87 per cent at Rs 141.5 crore for the quarter ended March 31, 2016 as against Rs 133.64 crore in the corresponding quarter of the previous year.

The company’s consolidated revenue has grown by 40.4 per cent at Rs 2,313.4 crore in Q4FY16. Its operating profit (EBITDA) has grown by 10.42 per cent at Rs 182.21 crore along with operating profit margin contracting by 213 bps for the current quarter, i.e. at 7.88 per cent.

Revenues have been boosted by PMC division, which has grown robustly at 45.6 per cent to Rs 2,251 crore; and EPC division revenues have grown strongly at 46.89 per cent to Rs 131.49 crore; while real estate division revenues have de-grown by 54 per cent to Rs 51.60 crore.

EBIT level, PMC division has reported growth of 36.25 per cent at Rs 163.65 crore, which is a bigger part of the company and contributes to around 76.52 per cent of the total revenue of the company; while EBIT margin of this segment has contracted by 55 bps to 7.91 per cent. The PMC division is witnessing big healthy opportunities due to redevelopment of old colonies. NBCC is currently awaiting sanction to redevelop four old colonies in Delhi, further there are a number of redevelopment projects that are under consideration by the Rajasthan and Odisha Government.

For the entire period of FY16, it has reported consolidated net profit growth of 11.80 per cent at Rs 311.12 crore, while its revenue has grown by 32.69 per cent at Rs 5838.3 crore. Its operating profit (EBITDA) has grown by 21.84 per cent at Rs 351.25 crore along with operating profit margin contracting by 53 bps for the current year at 6.02 per cent.

Monday May 16, stock price closed marginally lower by Rs 3.35 or 0.34 per cent at Rs 978.60 per share.