BENGALURU (Reuters) – Indian infrastructure firm NCC reported a 21% rise in first-quarter profit on Tuesday, helped by the execution of previously commissioned projects.
Consolidated net profit after tax rose to 2.1 billion rupees ($25 million) for the quarter ended June 30 from 1.74 billion rupees a year ago.
Revenue from operations rose 26.2% to 55.28 billion rupees.
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KEY CONTEXT
The infrastructure sector, one of the key drivers of the economy, has got a boost from increased government spending.
In its latest budget announcement, India retained its allocation for capital expenditure at a record 11.11 trillion rupees for the current financial year, boosting the prospects for the sector.
India’s largest infrastructure developer Larsen and Toubro also reported a better-than-expected quarterly profit last month.
PEER COMPARISON
Valuation (next Estimates (next 12 months) Analysts’ sentiment
12 months)
RIC PE EV/EBIT Revenue Profit growth Mean # of Stock to Div
DA growth % % rating* analysts price yield
target** (%)
NCC 19.46 9.67 14.07 35.77 Buy 9 1.11 0.64
KNR Constructions 24.56 14.60 4.42 -4.30 Buy 14 1.26 0.06
PNC Infratech 15.17 15.50 11.23 1.62 Buy 14 0.82 0.10
Ashoka Buildcon 16.51 15.06 7.61 49.20 Buy 9 1.24 –
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
— All data from LSEG
— $1 = 83.9130 Indian rupees
(Reporting by Anisha Ajith in Bengaluru; Editing by Eileen Soreng)
