NCC

The company, earlier recognized as Nagarjuna Construction Company and now rechristened as NCC, on a YoY has shown a 11% rise in interest outgo and 6% on a QoQ. Tax outgo, on the other hand, dropped 53% (QoQ) down 21% (YoY). In Q1, interest outgo on a YoY had dropped 30%, mainly due to reduction of Rs.300 crore but apparently, outgo bounced back in current Q2. Its debt currently stands at Rs.2500 crore and it plans to bring it down to Rs.2000 crore by the end of FY13. It plans to do so by monetizing some of its realty and BoT projects. Once the interest rate cycle starts coming down, the company will stand to benefit.

On the performance front, its consolidated net profit which has shown weakness in Q1, dropped again in Q2 at Rs.11.30 crore, down 44% on QoQ and down 61% on a YoY. Its order book  as at 30th Sept 2012 stood at Rs.19,639 crore, down 4.2% sequentially. In the current year, the company hopes to get fresh orders of about Rs 8,500 crore.  As at 30th Sept 2012, promoters stake was at 20.35% of which 62.14% is pledged. Institutional holding is much more than double the promoter’s stake at 48.10% of which Blackstone holds 9.9% and Warhol holds 9.89%. Rakesh Jhunjhunwala, at end of Q1FY13 held 7.6% stake and he has hiked it to 8.19% at end of Q2FY13.