Q3 2025 NCC Ltd Earnings Call Transcript
Key Points
- NCC Ltd (BOM:500294) has a strong order book of INR 55,548 crore as of December 2024, indicating a healthy pipeline for future projects.
- The company has a prospective project pipeline valued at more than INR 2.4 lakh crore, showcasing potential growth opportunities.
- NCC Ltd's buildings and transportation divisions continue to see good traction, with significant portions of the order book allocated to these sectors.
- The company has maintained its order inflow guidance of INR 20,000 crore to INR 22,000 crore for the current financial year.
- Collections in the fourth quarter have been fairly good, with expectations of improved payment flows as government budgets are released.
- NCC Ltd has revised its revenue growth guidance downwards to around 5% for the current financial year, citing slow execution due to elections and elongated billing cycles.
- The company's EBITDA margin guidance has been adjusted to 9.25%, reflecting lower absorption of fixed costs due to reduced turnover.
- There has been a significant increase in debt levels, rising to INR 2,415 crore by the end of Q3 FY25, attributed to delayed payments and increased working capital requirements.
- The working capital days have increased to 95 days, indicating a slower turnover of receivables and inventory.
- Payment delays have been experienced across various projects, particularly due to political changes and elections, impacting cash flow and project execution.
Ladies and gentlemen, good day, and welcome to the NCC Limited Q3 FY25 Earnings Conference Call hosted by JM Financial Institutional Securities Ltd. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Vaibhav Shah from JM Financial Institutional Securities Ltd. Thank you, and over to you, sir.
Yes. Thank you. On behalf of JM Financial, I welcome everybody to 3Q FY25 Earnings Conference Call of NCC Limited. We have from the management today, Sri R.S. Raju, Director Projects; Sri Sanjay Pusarla, Executive Vice President, Finance and Accounts; and Sri Neerad Sharma, Head Strategy, and Investor Relations. I will hand over the call to the management for opening remarks, which will be followes by a Q&A session. Over to you, sir.
Good evening, everyone at the very outset. I thank each of you for taking time to attend this interactive meeting. I
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