India's NCC posts 25% jump in Q4 profit
May 15 (Reuters) -Indian infrastructure firm NCC NCCL.NS reported a 25% rise in fourth-quarter profit on Wednesday, aided by the execution of major projects.
The company reported a consolidated net profit after tax of 2.39 billion rupees ($28.6 million) for the quarter ended March 31, up from 1.91 billion rupees a year ago.
Revenue from operations jumped 31% to 64.85 billion rupees.
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KEY CONTEXT
Infrastructure remains a key driver for India's economy, with the government steadily increasing its spending on the sector over the last few years.
In February, India raised its allocation for infrastructure to 11.11 trillion rupees ($133.07 billion), an 11% increase year-on-year, helping firms like NCC, which is involved in constructing roads and highways, among others.
However, analysts have flagged that India's robust capital expenditure environment is likely to be subdued as government spending tapers ahead of national elections that started in mid-April and will go on till early June.
PEER COMPARISON
Valuation (next 12 months) | Estimates (next 12 months) | Analysts' sentiment | |||||
RIC | EV/EBITDA | Revenue growth (%) | Profit growth (%) | Mean rating* | # of analysts | Stock to price target** | |
NCC Ltd | NCCL.NS | 7.72 | 13.74 | 35.47 | Strong Buy | 9 | 1.03 |
KNR Constructions Ltd | KNRL.NS | 9.82 | 7.97 | 6.62 | Buy | 15 | 0.87 |
PNC Infratech Ltd | PNCI.NS | 14.36 | 10.70 | 20.18 | Buy | 13 | 0.86 |
Ashoka Buildcon Ltd | ABDL.NS | 8.86 | 6.96 | 49.78 | Buy | 9 | 0.84 |
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
JAN-MARCH STOCK PERFORMANCE
-- All data from LSEG
-- $1 = 83.4690 Indian rupees
JANUARY-MARCH STOCK PERFORMANCE https://tmsnrt.rs/4akpmjh
Reporting by Anisha Ajith in Bengaluru; Editing by Varun H K
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