India: Nagarjuna Construction posts 37% y-o-y growth in revenue in FY'24

Nagarjuna Construction Company Limited (NCC Ltd.) has posted highest ever revenue of INR 18,439 crore, up 37% y-o-y in FY'24. The company's capex for FY'24 stood at INR 249 crore and INR 114 crore during Q4FY'24. Out of total orders of INR 16,900 crore, the company executed around 53% until March 2024.

Performance highlights

Order book rises y-o-y: The company's consolidated order book recorded 15% y-o-y growth to INR 57,536 crore in FY'24. On a standalone basis, orders recoded a 13% increase to INR 51,843 crore in FY'24.

Order inflow up 5%: NCC's consolidated order inflow rose 5% y-o-y to INR 27,283 crore in FY'24. The company has given guidance of INR 20,000-22,000 crore for FY'25 considering the present market environment, particularly the general elections followed by state assembly elections.

The project pipeline expected to come up for bidding post-elections is healthy, at least in some of the major verticals such as buildings, transport, water, electrical Transmission & Distribution (T&D).

Revenue rises 37% y-o-y: The company reported increase of 37% in revenue at INR 18,439 crore in FY'24 against INR 13,504 crore in the previous year. During the quarter, the same rose by 36% y-o-y to INR 5,488 crore in Q4FY'24 from INR 4,047 crore in Q4FY'23. The rise was driven majorly by the buildings and electrical divisions, which in turn were driven by the UP Jal Jeevan Mission project.

EBITDA up 9%: The company's standalone operating Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) increased 9% y-o-y to INR 1,648 crore in FY'24 compared to INR 1,343 crore in the previous year. It rose by 20% on the year to INR 510 crore in Q4FY'24 from INR 424 crore in same period of last fiscal.

Update on projects:

(i) The Bihar smart meter project has started and erection has been completed for some sample testing meters. Other major projects of the company include Jal Jeevan and Nigam projects.

(ii) It may take another year to complete the second and third phases of the Jal Jeevan projects. The Malad project valued at INR 3,802 crore has received environmental clearance to proceed for execution.

(iii) The company has entered the new segment of smart meters and bagged three projects worth INR 8,080 crore. The field trial of smart meters for the Bihar project has already started and there are plans to start the same for the Maharashtra projects next month.

(iv) The company has bagged the first construction contract of the twin tunnel from Goregaon to Mulund (Mumbai)

including box tunnel along with mechanical, electrical and associated works worth INR 6,335 crore (excluding GST) as part of a joint venture.