NCC Shares up 6%; Bags Two Orders from BSNL Worth ₹10,800 Crore

Shares of Nagarjuna Construction Company Ltd fell by 6.1% on March 26 to ₹217.40 apiece on the NSE as it won two large orders from BSNL on March 25.

As per an exchange filing, the company said that it has received two orders from Bharat Sanchar Nigam Limited (BSNL). The order pertains to the design, supply, construction, installation, upgradation, operation, and maintenance of the middle mile network of BharatNet in the Uttarakhand Telecom Circle and Madhya Pradesh, DNH & DD Telecom Circles.

The project size in Uttarakhand is valued at ₹2,647.12 crore (excluding GST), while the project in Madhya Pradesh is estimated at ₹8,157.44 crore (excluding GST).

The period by which the orders are due to be executed is kept at three years.

Q3 performance

During the December quarter, the company reported a decline of 12.5% in the net profit. Consolidated net profit fell to ₹193 crore ($22.04 million) in the December quarter, compared to ₹221 crore a year ago. Revenue from operations went up by 1.61% to ₹5,345 crore against a growth of 36.6% in the corresponding quarter a year earlier.

Stock performance

NCC shares fell by 16% in the last 12 months and 33% in the past six months. However, the stock has surged by 1,086% in the past five years.