NBCC jumps on hiking DTC project cost to Rs 1,942 crore

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NBCC (India) jumped 3.52% to Rs 48.50 after the company said it has hiked project cost to Rs 1,942 crore to build various land parcels in the national capital. On 28 October 2020, NBCC had informed signing a memorandum of understanding with Delhi Transport Corporation (DTC) for the development of various land parcels at Shadipur colony, Vasant Vihar depot, Hari Nagar Depot, and Hari Nagar colony. NBCC will work as a project management consultant for developing lands on the self-revenue generation model.

This is hereby informed that the total estimated cost of construction for the said work has increased to Rs 1,942 crore including the NBCC fee out of which Rs 1,000 was sanctioned to NBCC in FY 2020-21, NBCC said in a regulatory filing. Accordingly, in continuation, additional business amounting to Rs 942 crore has accrued to NBCC.

NBCC (India) provides civil engineering construction services. Its consolidated net profit surged to Rs 35.80 crore in the quarter ended June 2021 as against Rs 5.93 crore during the previous quarter ended June 2020. Net sales increased 103.80% to Rs 1379.64 crore in Q1 FY22 from Rs 676.95 crore in Q1 FY21.

As of 30 June 2021, the Government of India held a 61.75% stake in NBCC (India). The media reported that the company likely to feature on the initial list of firms for privatisation, as the government embarks on the path of privatising or shut all CPSEs in the non-strategic sectors’ in a phased manner.

Markets today

The benchmark equity indices traded in the red in early trade following weak global cues. At 9:23 (IST), the S&P BSE Sensex was down 416.88 points or 0.7% at 59,250.82. The Nifty 50 index fell 108.7 points or 0.61% at 17,639. In the broader market, the BSE Midcap index and Smallcap index were up 0.29% and 0.38%, respectively, at around the same time. The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,063 shares rose and 1,227 shares fell. A total of 132 shares were unchanged.

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