NCC shares sink 15% as Q3 profit declines 12.5% YoY, margins contract

Shares of NCC Ltd tumbled as much as 14.6% on Friday to Rs 202.85 on the BSE after the infrastructure company reported a 12.5% year-on-year (YoY) decline in net profit at Rs 193.2 crore for the third quarter ended December 2024.

The stock decline followed NCC's earnings announcement post-market hours on Thursday. The Rekha Jhunjhunwala-backed firm posted a net profit of Rs 193.2 crore for the quarter ended December 31, 2024, down from Rs 220.7 crore a year earlier, according to a regulatory filing.

Revenue from operations rose marginally by 1.6% to Rs 5,344.5 crore in the December quarter, from Rs 5,260 crore in the same period last year. However, at the operating level, the company saw a sharper decline, with EBITDA dropping 16.6% to Rs 420.9 crore from Rs 504.4 crore a year ago.


EBITDA margin contracted to 7.9% in the third quarter, from 9.6% in the corresponding quarter last year, reflecting cost pressures and potential execution challenges.

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For the nine months ended December 2024, NCC reported a turnover of Rs 16,165.55 crore, up from Rs 14,440.86 crore in the corresponding period a year earlier. EBITDA for the period stood at Rs 1,361.76 crore, while net profit attributable to shareholders came in at Rs 566.06 crore, improving from Rs 1,218.36 crore and Rs 471.53 crore, respectively, in the prior year period.

NCC’s stock has been under pressure, falling 3.3% over the past year and shedding 31.8% in the last six months. In the past week alone, it has declined by over 12%, exacerbating investor concerns over margin compression and earnings weakness.

Analysts remain broadly positive on the stock, with a consensus target price of Rs 365 per share, according to Trendlyne data. Out of 12 analysts covering NCC, nine have a “buy” rating, one suggests a “hold,” and two recommend selling the stock.

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