NCC - Q4FY13 Result Review - Angel Broking

NCC posted poor set of numbers for 4QFY2013 below our and street expectations. On the top line front, NCC reported revenues of Rs. 1,741cr in 4QFY2013, indicating a decline of 0.8% yoy, which was lower than our estimate of Rs. 1,879cr. The poor execution was mainly due to slow moving orders and declining order book. On the EBITDAM front, owing to profit on from sale of real estate asset the company's EBITDA margins grew by 320bp yoy to 9.0% (our estimate was 8.5%) in 4QFY2013. Interest cost came in at Rs. 113cr a growth of 14.9% yoy. On the bottom line level, NCC reported a yoy growth of 151.9% to Rs. 27cr, lower than our and consensus estimate owing to lower-than-expected revenue performance and higher tax rate (45%). The current outstanding order book of NCC stands at Rs. 18,555cr as on 4QFY2013, with order inflows of ~Rs. 4,000cr for the full year.

We continue to remain positive on the stock with Buy rating on it. The target price is currently under review.

Source : Equity Bulls

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