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NBCC gains after new order win

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Capital Market
Last Updated : Sep 09 2019 | 1:31 PM IST

NBCC (India) rose 2.37% to Rs 36.70 after the company said it secured total business worth Rs 400 crore in August 2019.

NBCC (India) said it received a Letter of Award (LoA) of work from Indian Institute of Management (IIM) Sambalpur to provide Project Management Consultancy (PMC) for the development of permanent campus (Phase-1 works). The estimated project cost is Rs 421 crore (approximately) including PMC fees.

Meanwhile, with reference to media report titled, "Jaypee Infratech case: NBCC to submit revised plan to take over 27 incomplete projects", NBCC (India) clarified on 6 September 2019 that it submitted its resolution plan for Jaypee Infratech on 15 February 2019 and later a revised resolution plan on 24 April 2019. It added that it obtained necessary approvals from the start of from its Administrative Ministry, DIPAM and Niti Ayog.

Further, the Supreme Court (SC) in the case of Chitra Sharma Vs. Union of India, vide its daily order dated 3 September 2019, issued notice and directed NBCC to appear before SC on 5 September 2019 and submit its response on whether it would be in position to submit its revised resolution plan.

Consequently on 5 September 2019, NBCC appeared before SC and submitted its willingness to take over the responsibility of preparing a revised plan so as to address the issues of all aspirants/stakeholders. The apex court has asked the company to submit the salient features of the proposed revised plan for its perusal on the next date of hearing i.e. 17 October 2019.

Meanwhile, the S&P BSE Sensex was up 173.92 points or 0.47% to 37,155.69.

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On the BSE, 7.11 lakh shares were traded in the NBCC (India) counter so far compared with average daily volumes of 12.72 lakh shares in the past two weeks. The stock hit a high of Rs 37 and a low of Rs 35.9 so far during the day.

The stock hit a 52-week high of Rs 72.4 on 07 Sep 2018. The stock hit a 52-week low of Rs 28.55 on 23 Aug 2019.

On a consolidated basis, NBCC's net profit fell 37.9% to Rs 51.46 crore on a 16.3% decline in net sales to Rs 1885.76 crore in Q1 June 2019 over Q1 June 2018.

NBCC (India) is a Government of India Navratna Enterprise. With operations spreading across India & Overseas, the company is organized into three market focused segments : PMC (Project Management Consultancy), EPC (Engineering Procurement & Construction) & RE (Real Estate).

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First Published: Sep 09 2019 | 12:21 PM IST

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