Q1 2027 NCC Ltd Earnings Call Transcript
Key Points
- NCC Ltd (BOM:500294) reported its highest-ever Q1 standalone and consolidated turnover of INR4,912 crore and INR5,842 crore respectively, registering a 12% year-on-year growth.
- Consolidated EBITDA margin improved to 9.4% in Q1 FY27, up from 8.8% in the corresponding quarter of the previous year.
- The company has provided a clear FY27 guidance, expecting order inflows of INR22,000-INR25,000 crore, revenue growth of 8%-10%, and an EBITDA margin of 8.5%-9%.
- The order book remains robust at INR81,214 crore, providing a book-to-build ratio of approximately 3.5 times and offering multi-year revenue visibility.
- Trade receivables decreased to INR3,055 crore from INR3,336 crore, with days outstanding improving to 68 days from 73 days, indicating better collection efficiency.
- The company is making good progress on the Ken-Betwa river interlinking project, with full mobilization completed and no major impact from reported local issues.
- Smart meter projects are progressing well, with 45% of the total meters installed and an expected IRR of 18% on total capital.
- NCC Ltd (BOM:500294) has guided for a conservative FY27 revenue growth of 8%-10%, which is lower than the 12% growth achieved in Q1, reflecting uncertainty in the operating environment.
- Net debt increased to INR2,008 crore at the standalone level and INR3,513 crore on a consolidated basis, driven by fresh debt for smart meter projects and capex requirements.
- The company faces rising prices for commodities linked to petroleum products, aluminum, and copper, including OFC cables for BharatNet projects, which could impact margins.
- Unbilled revenue increased to INR7,414 crore, representing 38% of revenue, which is higher than the previous year's 37% and indicates potential delays in billing milestones.
- The BharatNet project, with a balance order book of INR6,500 crore, is a fixed-price contract, and current high OFC prices could result in lower profits unless prices stabilize.
- The debt-equity ratio increased to 0.31 from 0.24 in the corresponding quarter of the previous year, indicating higher leverage.
- The Vizag urban receivables of INR271 crore are expected to be recovered only by December 2026, and the Mission Bhagiratha receivables of INR180 crore are subject to ongoing court proceedings.
Ladies and gentlemen, good day, welcome to NCC Limited Q1 FY27 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Vaibhav Shah. Thank you, and over to you, sir.
Thank you, Shravan. On behalf of JM Financial, I welcome everybody to FY27 earnings conference call of NCC Limited. We have from the management today, Sri R.S. Raju, Director of Projects; Sri Sanjay Pusarla, Executive Vice President, Finance and Accounts; and Sri Neeraj Sharma, Head, Strategy and Investor Relations.
I hand over the call to the management for their opening remarks, after which we can begin with the Q&A session. Over to you, sir.
Thank you very much, Vaibhav. Good morning, everyone. This is Neeraj. It gives me great pleasure to welcome you all to NCC's earnings call for the first quarter of the
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