Reliance Sec. maintains buy rating for NCC

NCC continued to report a stellar performance in

Q3FY19 with its revenue and adjusted profit after tax growing by 74 per cent yearon-year and 34 per cent YoY, respectively mainly underpinned by sustained execution ramp-up and higherthan-expected operating margin. Its reported revenue stood at `3,200 crore (74 per cent YoY and four per cent QoQ). NCC secured orders worth `4,400 crore and

`12,800 crore in Q3FY19 and

M9FY19, respectively taking its total order book to

`34,200 crore. Finance cost increased by 19 per cent YoY and 15 per cent QoQ to `124 crore led by `500 crore sequential rise in gross debt. Deterioration in working capital cycle, led by higher working capital requirement due to mobilisation advances to sub-contractors, was a prime concern for NCC but the broking house maintains its buy recommendation.

Broking firm: Reliance Securities Rating: Buy Closing price: `84.30