¨Launching the rights issue of Rs.600 crore in 2014 helped reduce debt.¨
- AAV Ranga Raju, Managing Director, NCC Ltd
Established in 1978, NCC started its journey with the name Nagarjuna Construction Company and has progressed to become one of the top three construction companies in India in terms of revenue. It undertakes civil construction in segments such as roads, water, irrigation, buildings, power, railways, metals and mining. Its well-diversified business portfolio and measures to improve performance - tighter control on receivables, cost cutting and selective bidding - have helped the company achieve a top line growth of around 36 per cent and PAT improvement of 176 per cent in FY15 on standalone. basis.
¨The most notable decision was the launch of the rights issue of Rs 600 crore in October 2014 that helped the company reduce debt and stabilise its operations,¨ shares AAV Ranga Raju, Managing Director, NCC Ltd. ¨We also decided not to bid for BOT and BOOT projects in roads and power and focused on monetisation of matured assets.¨ In FY16, the company is expecting a slight dip in its top line as the contribution from the EPC works of Krishnapatnam Power Project will be lower. However, from FY17 onwards, it expects a top line growth of at least 10 per cent and is aiming to reduce interest cost to help improve net profit.