NCC 3QFY2016 Results: Angel Broking

Views of Mr. Santosh Yellapu (Sr. Research Analyst - Infrastructure, Angel Broking) on NCC 3QFY2016 Results:

Reports better operating performance

"Despite miss on the 3QFY2016 revenues, NCC impressed us with YoY operating margin expansion. NCC reported top-line of INR 2,053cr, below our estimate of INR 2,099cr. NCC impressed us by reporting sixth consecutive quarter of YoY EBITDA margin expansion to 9.0%, ahead of our expectation of 8.8% for the quarter. In-line with EBITDA margin surprise, NCC's PAT margins were also ahead of our expectations of 2.6% at 2.8% for 3QFY2016.

NCC reported order inflows of INR 4,603cr for 9mFY2016 (reflecting order wins to the tune of INR 2,310cr for 3QFY2016). Also, the company in Jan-2016 reported Order Inflows of INR 1,873cr, thereby taking the YTDFY2016 Order inflows to INR 6,476cr. Accordingly the YTD order book of the company stands at INR 19,323cr (OB to LTM ratio of 2.3x).

In Jan 2016 NCC along with its JV partner Gayatri Project has signed definitive agreement to divest its stake in Western UP Tollways Ltd.

Despite better 3Q operating performance, we would wait for more insights from management concall on the ongoing strategic initiatives front. We maintain NEUTRAL rating on the stock."

Shares of NCC Limited was last trading in BSE at Rs.59.3 as compared to the previous close of Rs. 56.8. The total number of shares traded during the day was 581613 in over 4381 trades.

The stock hit an intraday high of Rs. 59.85 and intraday low of 55.8. The net turnover during the day was Rs. 33697461.

Source : Equity Bulls

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