Any current/future capex/capital investment/strategic investment?

CAPEX for the current financial year was budgeted at Rs. 250 crores for regular projects. As of December, Rs. 223 crores have been spent, with the remaining Rs. 25-27 crores expected to be utilized as per project requirements. No significant capital-intensive projects are planned in the near term; CAPEX will be incurred on an as-needed basis. Equity investments are fully received; loan amounts of about Rs. 374 crores are expected to be realized over the next couple of years. No new strategic capital investments have been specifically mentioned. The company plans to monitor opportunities and ma

Future growth expectations in sales/revenue/volumes?

FY25 revenue growth guidance revised downwards to around 5% due to slow execution and elongated billing/payment cycles, impacted mainly by general and state elections (Page 4, 7). In Q4 FY25, execution expected to be between Rs. 6,000 - 6,400 crores, similar or slightly lower year-on-year, indicating a flat or slight decline quarter-over-quarter (Page 19). For FY26, no formal guidance given yet; budget meetings scheduled in April-May to finalize numbers (Page 12, 15). Historically, the company has shown ~25% growth over the last 3 years; expect possible return to growth in FY26, though no defi

Future growth expectations in earnings/operating earnings/profits/EPS?

Revenue growth guidance for FY25 has been revised downward to around 5% due to election-related execution slowdowns. EBITDA margin for FY25 is expected to be around 9.25%, with Q4 margin anticipated at about 9.5%, considered sustainable. For FY26, management has not provided specific guidance yet; budget meetings and project closures by March end will inform future estimates. Historically, the company has shown around 25% growth over the last three years; they remain optimistic about growth resuming post-election impact. EPS for Q3 FY25 stood at 8.70 with an expected increase to 10.10 by March

Current/ Expected Orderbook/ Pending Orders?

Current order book stands at Rs. 55,548 crore as of December 2024. Order book at beginning of the year was Rs. 57,536 crore. Orders received during 9 months FY25: Rs. 13,608 crore (Rs. 8,440 crore in Q3). Executed work in first 9 months: Rs. 15,590 crore. Prospective project pipeline is about Rs. 2.45 lakh crore across seven verticals and many states. L1 projects in pipeline valued roughly at Rs. 8,000-Rs. 10,000 crore expected to convert into LOAs in Q4 FY25. Order inflow guidance maintained at Rs. 20,000 to Rs. 22,000 crore for FY25. Order book by division: - Buildings: Rs. 21,085 crore (~

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NCC LtdQ4 FY26Construction

NCC Ltd Q4 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹158P/E: 14.4Market Cap: ₹10.1K CrSector: Construction

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

N/A

Order

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4

→FY25 revenue growth guidance revised downwards to around 5% due to slow execution and elongated billing/payment cycles, impacted mainly by general and state elections (Page 4, 7).
→In Q4 FY25, execution expected to be between Rs. 6,000 - 6,400 crores, similar or slightly lower year-on-year, indicating a flat or slight decline quarter-over-quarter (Page 19).
→For FY26, no formal guidance given yet; budget meetings scheduled in April-May to finalize numbers (Page 12, 15).
→Historically, the company has shown ~25% growth over the last 3 years; expect possible return to growth in FY26, though no definite numbers now (Page 7).
→Order inflow guidance for FY25 maintained at Rs. 20,000 - 22,000 crores with L1 orders of Rs. 8,000 - 10,000 crores expected to convert in Q4, supporting future revenue base (Page 9, 8).
→Improved ground-level execution and collection expected post-elections, potentially supporting improved revenue momentum going forward (Page 11, 15).

Margin guidance

Category 3

→Revenue growth guidance for FY25 has been revised downward to around 5% due to election-related execution slowdowns.
→EBITDA margin for FY25 is expected to be around 9.25%, with Q4 margin anticipated at about 9.5%, considered sustainable.
→For FY26, management has not provided specific guidance yet; budget meetings and project closures by March end will inform future estimates.
→Historically, the company has shown around 25% growth over the last three years; they remain optimistic about growth resuming post-election impact.
→EPS for Q3 FY25 stood at 8.70 with an expected increase to 10.10 by March.
→Management expects improved collections and execution post the government settling post-elections, which may positively affect earnings growth going forward.

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Fundraise plans

- There is no explicit mention of any new fundraising through debt or equity in the transcript. - The company’s existing debt level has increased to Rs. 2,415 crores as of Q3 FY25, partly due to delays in payments and increased unbilled revenue. - Management expects debt levels to reduce in the near term, primarily through improved collections, especially in Q4. - Regarding future debt targets, the management is currently unable to provide a specific estimate and is awaiting government payments to improve. - No comments were made about any planned equity fundraising. - Capital expenditure for regular projects is maintained within budget with no indication of capital-intensive projects that would require new fundraising at this time. In summary, there is no disclosed ongoing or planned new fundraising through debt or equity; focus remains on optimizing existing resources and improving collections.

Order book

→Current order book stands at Rs. 55,548 crore as of December 2024.
→Order book at beginning of the year was Rs. 57,536 crore.
→Orders received during 9 months FY25: Rs. 13,608 crore (Rs. 8,440 crore in Q3).
→Executed work in first 9 months: Rs. 15,590 crore.
→Prospective project pipeline is about Rs. 2.45 lakh crore across seven verticals and many states.
→L1 projects in pipeline valued roughly at Rs. 8,000-Rs. 10,000 crore expected to convert into LOAs in Q4 FY25.
→Order inflow guidance maintained at Rs. 20,000 to Rs. 22,000 crore for FY25.
→Order book by division:
→ - Buildings: Rs. 21,085 crore (~38%)
→ - Transportation: Rs. 10,800 crore (~19%)
→ - Electrical T&D: Rs. 10,633 crore (~19%)
→ - Water: Rs. 5,450 crore (~10%)
→ - Irrigation: Rs. 4,496 crore

Capex plans

Yes

→CAPEX for the current financial year was budgeted at Rs. 250 crores for regular projects.
→As of December, Rs. 223 crores have been spent, with the remaining Rs. 25-27 crores expected to be utilized as per project requirements.
→No significant capital-intensive projects are planned in the near term; CAPEX will be incurred on an as-needed basis.
→Equity investments are fully received; loan amounts of about Rs. 374 crores are expected to be realized over the next couple of years.
→No new strategic capital investments have been specifically mentioned.
→The company plans to monitor opportunities and may invest based on project needs and government actions.

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