NCC: Extremely undervalued

From the Q3 FY24 con-call

Financial Performance:

• The total order book as of the third quarter stands at 50,154 crores, with 3,660 crores attributed to smart metering projects.

• NCC’s gel-driven projects have been awarded at 16,700 crores, with 43% executed by December end and an additional 5% expected to be completed by March end.

• Revenue from operations for the 9 months excludes O&M figures, as longer O&M period turnover is not yet included in the current period.
  Current Operational Performance:

• The company is actively involved in smart metering projects, with three in progress and a healthy order book in the water space, including supply, STP, and WTP projects.

  • The gel-driven projects are underway, with 43% completed by December end, and another 5% expected to be finished by March end.
    Future Outlook:

• NCC is exploring new projects in the water space due to increased budget allocations for the water department.

• The company is also heavily involved in smart metering and is assessing IT architecture and connectivity aspects for successful project implementation.
  Other Points:

• The company has received NHAI claim money in their SPV and has made progress with documentation. They have also received a portion of the investment in the Vizag Urban project and expect additional installments before March and in April 2024.

• NCC is in advanced discussions with SBI Caps and SBI for debt financing and has mobilization advances in their contracts, ensuring funding is not a problem.