NCC Ltd shares plunge nearly 12% as weak Q3 earnings, margin pressure spook investors

Shares of NCC Ltd. dropped as much as 13% on Friday after the infrastructure company reported weaker-than-expected earnings for the December quarter, weighed down by a decline in profitability despite modest revenue growth.

By 2 pm, the stock had recovered marginally, and was down almost 12%, trading at ₹209.35 a piece.

The Rekha Jhunjhunwala-backed company posted a 12.5% year-on-year drop in net profit to ₹193.2 crore for the quarter ended December 31, 2024, compared to ₹220.7 crore a year earlier, according to a regulatory filing. Revenue from operations, however, saw a 1.6% increase to ₹5,344.5 crore from ₹5,260 crore in the prior-year period.

At the operating level, earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 16.6% to ₹420.9 crore, down from ₹504.4 crore in the same period last year, reflecting margin pressure despite steady topline growth.

Nine-Month Performance

For the first nine months of the fiscal year, NCC reported total revenue of ₹16,165.55 crore, including other income, compared to ₹14,440.86 crore in the same period last year. The company’s net profit rose to ₹566.06 crore, up from ₹471.53 crore a year ago, while EBITDA climbed 11.7% to ₹1,361.76 crore from ₹1,218.36 crore.

The company’s earnings per share (EPS) for the nine-month period stood at ₹9.02, compared to ₹7.51 in the corresponding period last year, indicating improved shareholder returns despite a weak third quarter.

The earnings announcement came after market hours on Thursday.

The decline follows investor concerns over weaker operating margins and profit erosion despite a steady order book and revenue expansion. NCC has been benefiting from India’s infrastructure push, but higher costs and margin pressures have weighed on earnings growth.