How has been the historical performance of NBCC?

Revenue and Profit Growth Trends

Over the past six years, NBCC’s net sales have shown a robust increase, rising from ₹6,832 crores in the fiscal year ending March 2021 to over ₹12,000 crores by March 2025. This represents a near doubling of revenue within this period, reflecting strong demand and effective project execution. The total operating income mirrors this growth, as other operating income has remained negligible, indicating that core business activities drive the revenue expansion.

Operating profit before other income (PBDIT) has also improved significantly, climbing from approximately ₹119 crores in March 2021 to ₹624 crores in March 2025. When factoring in other income, operating profit reached ₹858 crores in the latest fiscal year, underscoring enhanced operational efficiency and income diversification. The profit before tax followed a similar upward trend, reaching ₹755 crores in March 2025, up from ₹287 crores in March 2021.

Net profit attributable to shareholders has more than doubled over this timeframe, rising from ₹222 crores in March 2021 to ₹541 crores in March 2025. Earnings per share (EPS) have correspondingly increased from ₹1.23 to ₹2.00, signalling improved returns for investors. The profit after tax margin has also strengthened, reaching 4.63% in the latest year compared to 3.51% in 2021, reflecting better cost control and margin management.

Cost Structure and Margins

NBCC’s expenditure profile reveals a focus on managing manufacturing expenses, which constitute the largest cost component. These expenses fluctuated notably, peaking in earlier years but showing a downward trend to ₹10,352 crores in March 2025 from a high of over ₹22,000 crores in March 2020. Employee costs have remained relatively stable, hovering around ₹300 to ₹350 crores annually, indicating controlled personnel expenses despite business growth.

The company’s operating profit margin excluding other income improved steadily from 1.77% in March 2021 to 5.18% in March 2025, highlighting enhanced operational leverage. Gross profit margins also increased, reaching 6.33% in the latest fiscal year, up from 4.35% in 2021. These margin improvements suggest NBCC has been successful in optimising its cost base while expanding its revenue.

Balance Sheet and Financial Position

NBCC’s balance sheet reflects a strengthening financial position. Shareholder’s funds have grown from ₹1,643 crores in March 2021 to ₹2,479 crores in March 2025, supported by rising reserves. The company has maintained a debt-free status throughout the period, with no long-term or short-term borrowings reported, which reduces financial risk and interest burden.

Current assets have increased to ₹12,686 crores in March 2025, driven by higher cash and bank balances, which rose to ₹5,716 crores from ₹5,678 crores in 2021. Sundry debtors and inventories have also increased, consistent with business expansion. Net current assets improved significantly to ₹1,886 crores in March 2025, indicating healthy liquidity and working capital management.

Contingent liabilities have fluctuated but remain substantial, reflecting ongoing commitments and potential obligations. The company’s book value per share has risen to ₹9.18 in March 2025 from ₹6.09 in March 2021, signalling enhanced net asset value for shareholders.

Cash Flow and Operational Efficiency

NBCC’s cash flow performance has been mixed but shows improvement in recent years. Cash flow from operating activities was negative in March 2023 but rebounded to a positive ₹657 crores in March 2025. Investing activities generated positive cash inflows of ₹572 crores in the latest year, contrasting with outflows in prior years, indicating strategic asset management and investment realisations.

Financing activities consistently resulted in cash outflows, reflecting repayments or dividend distributions. The net cash inflow for March 2025 was ₹960 crores, a significant turnaround from negative cash flows in earlier years. The closing cash and cash equivalents rose sharply to ₹3,009 crores in March 2025, providing a strong liquidity buffer for the company’s operations and growth initiatives.

Overall, NBCC’s historical performance reveals a company on a growth path with improving profitability, a solid balance sheet free of debt, and strengthening cash flows. These factors collectively enhance its financial stability and investor appeal.

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