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NBCC India attains orders of Rs. 204.49 crores

NBCC India attains orders of Rs. 204.49 crores

What is NBCC (India) Limited?

As of January 2020, there are 10 Maharatna companies and 14 Navaratna companies in India. With this, there are also 73 Miniratna companies divided into two categories.

The government of India recognized nine public Sector Enterprises (PSEs) and honored them with the title Navaratna, meaning nine precisions gems, in the year 1997. The government provided them greater autonomy to compete in global markets with an aim to support them becoming global giants.

All the companies get marked out of 100 on six parameters. The parameters are compromises of net profit, net worth, total manpower cost, a total cost of production, cost of services, capital employed, profit before interest and taxes to turn over, inter-sectoral performance and earnings per share, etc. A score of 60  would pass them as a Navaratna.

With this, a company also first needs to be Miniratna and have four independent directors on its board to gain status as a Navaratna.

National Building Construction Corporation Limited, abbreviated as NBCC (India) Limited, is a Government of India Navaratna Enterprise with operations spreading across India and overseas. It was founded in 1960 as a Government of India Civil Engineering Enterprise. It was granted its status of Navaratna on June 23rd, 2014.

 

The main news:

After the market closed, on the 26th of July, the bourses of NBCC limited were informed about them acquiring two orders. The total estimated cost of them together being Rs. 204.49 Crores. The orders were secured on a Project Management Consultant basis.

Two orders from BHEL and IIT were previously secured by the company in the last month worth Rs. 431.63 Crores. After that, this is the first order that they obtained in the month of July 2020.

The first order is of construction of the Police Headquarters of Seychelles (East Africa). It’s worth tot up to Rs. 104.19 Crores. Later the company also got hold of another commission of construction of the attorney general’s office of Seychelles amounting Rs. 100.30 Crores.

In recent times the company saw a huge surge of revenue. Its order book containing orders of Rs. 70,000 Crores. Although this upward gush of revenue, projects worth only 13000 Crores has been awarded. The rest of the projects are delayed waiting for government approvals, litigations, etc..

Looking at return history the company currently is running low with a negative 34% return in the last six months in BSE. The shares are trading at Rs. 24.25 apiece, 0.83 percent higher than regular at BSE (as of Jul 28, 2020. 11.42 am IST). They are also confident of gaining orders worth Rs. 33000 Crores for FY21.

 

 

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