NCC 2024-25 Annual Report Analysis

Mon, 4 Aug

NCC has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during FY24-25.

NCC Income Statement Analysis

• Operating income during the year rose 6.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.7% in FY25 as against 8.4% in FY24.
• Depreciation charges increased by 1.9% and finance costs increased by 14.4% YoY, respectively.
• Other income grew by 23.5% YoY.
• Net profit for the year grew by 17.3% YoY.
• Net profit margins during the year grew from 3.6% in FY24 to 3.9% in FY25.

NCC Income Statement 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Net Sales	Rs m	208,450	221,994	6.5%
Other income	Rs m	1,260	1,556	23.5%
Total Revenues	Rs m	209,709	223,549	6.6%
Gross profit	Rs m	17,416	19,277	10.7%
Depreciation	Rs m	2,119	2,159	1.9%
Interest	Rs m	5,948	6,801	14.4%
Profit before tax	Rs m	10,609	11,873	11.9%
Tax	Rs m	3,205	3,190	-0.5%
Profit after tax	Rs m	7,404	8,683	17.3%
Gross profit margin	%	8.4	8.7
Effective tax rate	%	30.2	26.9
Net profit margin	%	3.6	3.9

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NCC Balance Sheet Analysis

• The company's current liabilities during FY25 stood at Rs 131 billion as compared to Rs 111 billion in FY24, thereby witnessing an increase of 18.1%.
• Long-term debt stood at Rs 3 billion as compared to Rs 697 million during FY24, a growth of 279.8%.
• Current assets rose 19% and stood at Rs 176 billion, while fixed assets rose 5% and stood at Rs 33 billion in FY25.
• Overall, the total assets and liabilities for FY25 stood at Rs 210 billion as against Rs 180 billion during FY24, thereby witnessing a growth of 16%.

NCC Balance Sheet as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	66,397	73,237	10.3
Current Liabilities	Rs m	111,156	131,280	18.1
Long-term Debt	Rs m	697	2,646	279.8
Total Liabilities	Rs m	180,342	209,614	16.2
Current assets	Rs m	148,749	176,345	18.6
Fixed Assets	Rs m	31,593	33,269	5.3
Total Assets	Rs m	180,342	209,614	16.2

NCC Cash Flow Statement Analysis

• NCC's cash flow from operating activities (CFO) during FY25 stood at Rs 7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY25 stood at Rs -586 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY25 stood at Rs -2 billion, an improvement of 68% on a YoY basis.
• Overall, net cash flows for the company during FY25 stood at Rs 4 billion from the Rs 3 billion net cash flows seen during FY24.

NCC Cash Flow Statement 2024-25

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-24	Mar-25
Cash Flow from Operating Activities	Rs m	13,595	7,417	-45.4%
Cash Flow from Investing Activities	Rs m	-3,187	-586	-
Cash Flow from Financing Activities	Rs m	-7,712	-2,467	-
Net Cash Flow	Rs m	2,695	4,365	61.9%

Current Valuations for NCC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.8, an improvement from the EPS of Rs 11.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 217.6, stands at 15.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 15.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Sales per share (Unadj.)	Rs	332.0	353.6
TTM Earnings per share	Rs	11.8	13.8
Diluted earnings per share	Rs	11.8	13.8
Price to Cash Flow	x	15.3	15.5
TTM P/E ratio	x	19.8	15.9
Price / Book Value ratio	x	1.7	2.3
Market Cap	Rs m	115,210	167,776
Dividends per share (Unadj.)	Rs	2.2	2.2

Ratio Analysis for NCC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY25, from 1.3x during FY24. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 2.7x during FY25, from 2.8x during FY24. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 11.9% during FY25, from 11.2% during FY25. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 24.6% during FY25, from 24.7% during FY24. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 7.4% during FY25, from 7.4% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Current ratio	x	1.3	1.3
Debtors’ Days	Days	5	6
Interest coverage	x	2.8	2.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.4	7.4
Return on equity	%	11.2	11.9
Return on capital employed	%	24.7	24.6

To see how NCC has performed over the last 5 years, please visit here.

NCC Share Price Performance

Over the last one year, NCC share price has moved down from Rs 344.0 to Rs 217.6, registering a loss of Rs 126.4 or around 36.7%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 6,987.5 (up 0.5%). Over the last one year it has moved down from 8,098.5 to 6,987.5, a loss of 1,111 points (down 13.7%).

Overall, the S&P BSE SENSEX is down 1.3% over the year.

(To know more, check out historical annual results for NCC and quarterly results for NCC)