Owing To A Superior Project Management And Real Estate Income NBCC PAT Up By 57%
Amit Bhanot / 12 Feb 2014
The company plans to increase its real estate market by constructing commercial projects in un-tapped areas of prominent Indian cities. Topline for Q3FY14 increased by 40% to Rs 1000 crore, whereas the net profit reached Rs 56.60 crore against Rs 36 crore posted during the same quarter last year.
PSU construction major National Building Construction Corporation (NBCC) posted a decent performance during third quarter owing better performance in project management consultancy and real estate development. Company’s topline increased by whooping 40% to Rs 1000 crore during quarter ending December 2013 while net profit reached Rs 56.60 crore as against Rs 36.04 crore posted during quarter ending December 2012, an increase of 57%.
Company is now focusing on real estate development and planning to provide affordable housing solution to Indian citizen. “Till now we have our share of income from real estate segment which is around 15% but we want to take this to 30% in times to come,” informed Anoop Kumar Mittal, CMD NBCC. For achieving this company is planning new real estate project on around 155 acres on pan India basis. This also includes a big government assisted project in posh East Kidwai Nagar in Delhi. As far as order book is concerned company has an order book of Rs 16000 crore while order inflows are in the tune of Rs 5000 crore.
Company is working on different residential project which will be complete in next 12 months and will provide around 500 flats to public. Also on the project management side, company is working on the construction of three IIT campuses including Patna, Jhajhar and Kondli worth Rs 750 crore. In spite of a big player in construction and real estate the company is completely a debt free company and all funds requirement is satisfied by internal accrual. “This is a big reason that we are able to maintain our margins as we don’t have any interest expense and in my view any real estate company should focus on its debt management to remain profitable in the present circumstances,” marked Mittal. Profitability wise company is earning around 10-15 % net profit margin on both segments i.e. project management and real estate and working with Union government and various state government to develop their land parcels across India.
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