🚧 NCC Share Price Surges 5% on ₹2,129.60 Crore Amaravati Infrastructure Contract Win

Hyderabad-based NCC Limited saw its shares gain 5% on Thursday, March 20, 2025, after securing a massive infrastructure contract worth ₹2,129.60 crore (excluding GST). The contract was awarded by the Andhra Pradesh Capital Region Development Authority (APCRDA) for development projects in the Zone-12 villages of Amaravati Capital City.

✅ Contract Details

The contract, classified as a "Major Order", involves the construction of:

• Roads, drains, and water supply systems
• Sewage networks and utility ducts for power and ICT
• Reuse water lines and avenue plantation

The project will be executed over five years—with three years for construction and two years for the defect liability period (DLP). The contract follows a lumpsum percentage tender model, as per the Letter of Acceptance dated March 19, 2025.

📈 Impact on NCC's Share Price

Following the announcement, NCC's stock surged 5% on the BSE and NSE, reflecting investor confidence in the company's growth potential. Infrastructure contracts of this scale often boost market sentiment, indicating long-term revenue generation and stability for the company.

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💡 NCC’s Recent Contracts

This isn't the only major win for NCC in recent months. In February 2025, the company bagged another order worth ₹218.82 crore for a transportation project from a state government. This project is scheduled to be executed over 36 months.

💰 Financial Performance

Despite the recent contract wins, NCC reported a 12.5% year-on-year (YoY) decline in net profit at ₹193.2 crore for Q3FY25 (ending December 31, 2024). However, revenue from operations increased by 1.6% to ₹5,344.5 crore, compared to ₹5,260 crore in the same quarter of the previous fiscal year.

At the operating level:

• EBITDA dropped by 16.6% to ₹420.9 crore in Q3FY25, down from ₹504.4 crore in Q3FY24.

🔥 What This Means for NCC

Winning large-scale infrastructure contracts strengthens NCC’s project portfolio and indicates potential for long-term revenue growth. The Amaravati project not only adds to its order book but also boosts the company’s market credibility.

Investors and market analysts will be closely watching how NCC executes this project over the next five years, as timely and efficient execution could enhance its reputation and financial performance.

📊 Market Outlook

As infrastructure development continues to gain momentum in India, companies like NCC are poised to benefit from government-backed projects. With multiple contracts in its portfolio, NCC’s stock could witness further upward movement, making it an interesting watch for investors.

Reference from:-https://www.cnbctv18.com/market/ncc-share-price-secures-contract-for-infrastructure-development-in-amaravati-19576279.htm