NCCL reports net loss in Q3 due to high interest rates
Tarun Kataria, CEO, Religare Capital Markets told NDTV Profit that the market will continue to rally further if the FII flows continue to come in.
City-based infra major, NCC Limited, today said it suffered a net loss of Rs 10.32 crore on consolidated basis for the quarter ended December 31, on account of high interest burden on the financials.
The company had made a profit of Rs 52.11 crore in the corresponding quarter of the previous year.
Y D Murthy, Executive VP Finance, said similar trend may continue in the current quarter as the interest rates have still not come down. He, however, said that turnover may increase.
The turnover too has seen a dip of nearly 4 per cent at Rs 1,541 crore for the quarter three, against Rs 1,599 crore for the same period in the last fiscal.
"There is a high interest burden in the third quarter. High raw material cost coupled with interest burden has pulled down the net profit," Murthy told PTI.
According to a company statement, interest and financial cost was 124.32 crore for the quarter, against 64.53 crore in Q3 in FY11.
Murthy said the slowdown in the economy and delays in payments from clients resulted in the shortfall of turnover.
"Turnover improvement is possible (in Q4). Since interest rates have not come down, the profit levels will be more or less the same," Murthy said.
In the current year, the company has so far secured orders aggregating Rs 9,940 crore and the order book stood at Rs 21,990 crore as of December 31, 2011.
The company has reported a turnover of Rs 4,633 crore for the nine months period of the current fiscal, against Rs 4,516 crore in the corresponding period of the previous year.
Shares of NCC closed at Rs 61.45 today on the Bombay Stock Exchange.