Pressure on margins due to high interest rates has clipped the profitability of construction major NCC Ltd.
The Hyderabad-based company has posted a lower net profit of Rs 11.35 crore for the second quarter ended September 30, 2012, on a consolidated basis against Rs 29.35 crore for the corresponding quarter last year.
The revenue for the second quarter was up at Rs 1,639.19 crore (Rs 1,492.73 crore).
Y.D. Murthy, Executive Vice-President, Finance, NCC, told Business Line that the company’s topline was up 21 per cent in the second quarter and 28 per cent in the first quarter. The earnings before tax and amortisation were in the range of 8-8.5 per cent. This augured well for the company.
The focus is on reduction in debt and interest. This will have a positive impact on the company going forward. The company has a debt of Rs 2,600 crore (amongst the lowest in infra firms).
On a standalone basis, the company registered a net profit of Rs 8.05 crore (Rs 11.40 crore). The revenue was up at Rs 1,352.70 crore (Rs 1,115.31 crore).
During the current financial year, NCC secured new orders aggregating Rs 2,621 crore, thereby taking the order book up to Rs 19,639 crore.
For the first half of this fiscal, the company registered a turnover of Rs 3,455.71 crore (Rs 3,117.88 crore) and a net profit of 31.69 crore (Rs 60.63 crore).
The company’s shares ended at Rs 44.55, down 1.98 per cent on the BSE.