Construction major NCC Limited has restarted work on most of its projects following the relaxation of lockdown norms to check the spread of Coronavirus pandemic.
However, there have been some disruptions in the supply chain and it is facing shortage of workforce at construction sites.
According to RS Raju, Associate Director, Finance and Accounts, NCC Limited, “The work is moving on an average 50 per cent plus, at few projects it is 100 per cent and in some projects it is about 70-80 per cent. However, there are a few projects where it is about 20 per cent and there are four projects where work has not started. On an average 50-70 per cent work is underway now.”
During an earnings call, YD Murthy, Executive Vice-President, Finance, NCC, said, “The company’s biggest project, the ₹2,850-crore Nagpur-Mumbai road project has made good progress. Similarly, the progress has been good and received around ₹1,000 crore range in AIIMS, Bathinda in Punjab, in Himachal Pradesh and Guwahati and also the Seabird project, has recently started. And mining projects were functioning at 100 per cent capacity even during April and May.”
The Nagpur Mumbai Road project is half way through. The execution of this project would go on briskly during 2020-2021 as well.
“At the AIIMS over 1,400 people are working. Work for the NBCC is picking up, as also with Lucknow airport. But there are still some supply chain constraints and in some cases and shortage of workmen,” Murthy said.
On the project pipeline in Andhra Pradesh, Raju said, “The AP projects order book is ₹4,479 crore, working to almost 16-17 per cent. While the government may de-scope some of the projects, the State government is keen to restart construction activity and pave way to provide employment.”
While the State government is planning to shift the capital city from Amaravati to Visakhapatnam, NCC is in dialogue with the State government to release bank guarantees. The company has facilities for ₹12,000 crore limit from a consortium of banks headed by SBI.
Last fiscal ended March 2020 NCC closed with a turnover of ₹8,901 crore as against ₹12,896 crore in the previous fiscal and profit of ₹336 crore (₹578.69 crore).
NCC shares closed at ₹30.85, up 2.32 per cent at BSE.
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