NCC Ltd has posted a lower net profit of Rs 20.30 crore for the second quarter ended September 30, 2017 as against a profit of Rs 51.18 crore in the corresponding quarter last year on a standalone basis.

The Hyderabad-based construction company posted lower income of Rs 1,470.03 crore, including GST for the second quarter, as against Rs 1,972.95 crore in the corresponding quarter of the previous year.

For the six months ended September 2017, NCC reported a profit of Rs 83.73 crore and total income of Rs 3,504.63 crore, including GST, as against a profit of Rs 103.52 crore and income of Rs 3,902.71 crore in the first half of the previous year.

The steep decline in Q2 turnover was due to GST issues. Supplies from vendors were affected due to GST implementation, besides the delay in billing process and payments by clients due to lack of clarity at a majority of government clients.

In the first six months period, there has been a decline in turnover by 14 per cent compared to the corresponding six months period of the previous year.

According to A.Ranga Raju, Managing Director, NCC, the management is confident of covering this shortfall in the second half of the year and expects to achieve the previous year’s turnover without any decline in the current year, since the company has received record orders in the first-half of the year.

In the first six months period of the current year, the company secured orders aggregating Rs 8,686 crore, taking the order book to Rs 21,909 crore as of September 2017.

In addition, the company received new orders aggregating to Rs 6,200 crore in October 2017, taking the total order book to Rs 28,109 crore as of October 2017.

Related Topics
comment COMMENT NOW