Post Rs. 600 cr. debt clearing, NCC sees strong second half

Q: NCC Ltd, which recently ended a Rs. 600 crore rights issue and shorten its debt, expects to post strong performances in the 3rd and 4th quarters, helping it to grow revenues 10-15 % this financial year.

Sharan Basappa, Hyderabad

9th December 2014

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They are awaiting Union Power Ministry indication to take back share in the power project. Once approval is received, they would be able to take back the stake and make about Rs. 470-500 cr. from the divestment. This amount would be utilized for equity in new projects.

Kamala Reddy, Hyderabad

9th December 2014

Comment

With regard to the company’s thermal power project being executed through a subsidiary, Sembcorp Industries currently holds about 49% in the power project coming up in Nellore district of Andhra Pradesh. Company's motive is to divest shares in the power project once they get necessary approvals.

Siddharth Bharadwaj, Hyderabad

9th December 2014

Comment

In spite of that the company move to take up shares in some of the completed BOT projects and for that talks are on and a decision is likely to come in the next year.

Kamala Reddy, Hyderabad

9th December 2014

Comment

According to the Executive Vice-President, Finance "Acche Din Aa Gaye Hai". They expect to see the speed of project execution to get better during the remaining part of the year or the next year. Murthy said NCC had no plans to bid for BOT (build–operate–transfer) projects now till so many matter get sorted out.

Siddarth Mamanthur, Hyderabad

9th December 2014

Comment

The reduction of Rs.600 cr. in debt from the total Rs.2600 cr. will save about Rs.70 crore in interest costs for the company. NCC has seen a change with this development. They are impatient that the rating of the company needs to be improved, pointing out that the working capital cycle has come down from 140 days to 110.

Kamat Reddy, Hyderabad

9th December 2014

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