Covid-led lockdown hits NCC’s revenue, profit in first quarter

NCC Limited has posted a steep fall in profit and revenues during the first quarter ended June 30, 2020 due to Covid-led lockdown.

The Hyderabad-based construction major posted a steep fall in profit during the first quarter at ₹16.93 crore as against ₹81.32 crore for the corresponding quarter last year on a standalone basis.

The company achieved a turnover of ₹1,211.41 crore (including other income) as against ₹2,212.70 crore in the corresponding quarter of the previous year, a decrease of 45 per cent on year-on-year basis.

The company posted EPS of ₹0.28 as against ₹1.35 in the corresponding quarter of the previous year.

Consolidated profit

On a consolidated basis, the company has reported a turnover of ₹1,328.71 crore and profit of ₹15.68 crore as against ₹2,371.51 crore and profit of ₹74.70 crore, respectively.

AAV Ranga Raju, Managing Director, in a statement said, “The operating results of this quarter are not comparable with the corresponding quarter of the previous year, since Covid-19 has impacted the operations significantly. The lockdown and also the supply and manpower disruptions impacted the construction industry significantly and our company was also affected. For our company, the impact on the top line has been about 45 per cent. The PAT margins are significantly affected due to non-absorption of fixed cost with lower volume of turnover. The situation is expected to improve in the remaining quarters.”

In the first quarter of 2020-21, the company secured orders aggregating to ₹2,592 crore and the order book stood at ₹27,916 crore as at the end of the first quarter.

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