NCC Ltd, which recently concluded a ₹600-crore rights issue and pared its debt, expects to post strong performances in the third and fourth quarters, helping it to grow revenues 10-15 per cent this fiscal.

The reduction of ₹600 crore in debt from the total ₹2,600 crore will save about ₹70 crore in interest costs for the company. NCC has seen a turnaround with this development, said YD Murthy, Executive Vice-President, Finance. “We are keen that the rating of the company needs to be upgraded,” he said, pointing out that the working capital cycle has come down from 140 days to 110.

The Hyderabad-based construction major has a strong order book of ₹20,395 crore as of September end, and of this, the company added ₹3,574 crore worth of orders during the fiscal.

“ Acche Din Aa Gaye Hai (good days are back again),” said Murthy. “We expect to see the pace of project implementation to get better during the remaining part of the year and next year.” Murthy said NCC had no plans to bid for BOT (build–operate–transfer) projects now till various issues get sorted out. “The focus would be on engineering, procurement and construction contracts and our order book is strong.”

Stake sale issue

On the company move to divest stake in some of the completed BOT projects, Murthy said talks are on and a decision is likely next year.

With regard to the company’s thermal power project being executed through a subsidiary, he said Sembcorp Industries currently holds about 49 per cent in the power project coming up in Nellore district of Andhra Pradesh. “Our stated intention is to divest stake in the power project once we secure necessary approvals,” he said.

“We are awaiting Union Power Ministry nod to divest stake in the power project. Once approval is received, we would be able to divest the stake and make about ₹470-500 crore from the divestment. This amount would be utilised for equity in new projects.”

Related Topics
comment COMMENT NOW