Infrastructure company NCC Limited, which provides construction, engineering, and procurement services, the fourth quarter of the fiscal year 2022-2023 performance has shown strong order book execution.

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The company, a few months ago, also upped its FY23 revenue guidance to 30 percent from 15-20 percent. It also said that FY23 order inflow is likely around Rs 17,000 crore and an optimistic scenario could even see it get to Rs 20,000 crore.

Speaking to CNBC-TV18 after the earnings report, Vijay Kumar, Head and VC-Finance at NCC said that FY23 Q4 margin is likely to be 10.5 percent, and the company expects to close the quarter with a margin above 10 percent.

He said, “For nine months, we have posted something close to 10 percent and in the same vicinity, we can expect the Q4 also to close by.”

Also Read | NCC says order inflow from water, irrigation segment is strong

Talking about orderbook, he said that the order inflow for Q4 continues to be strong, which is a positive sign for the company. NCC has seen an order inflow of Rs 12,000 crore so far in the first nine months of FY23, and in Q3 alone, the company received an order inflow of Rs 5,000 crore. Building constitutes approximately 50 percent of NCC's order book, indicating the company's strength in this sector.

As a multi-vertical operating company, NCC has a diverse portfolio of projects that spans across several industries, including transportation, water, and buildings. The company's projects include the Uttar Pradesh Jal Jeevan Mission Project, which is progressing well.

However, NCC has encountered some challenges in obtaining the proceeds of the Vizag land sale, which has caused a slight delay. Kumar expects the proceeds to be received by the end of March.

Also Read | NCC's Rs 40,000 crore order book has the market excited

Another challenge that NCC is facing is the Sembcorp arbitration, which is at an advanced stage. Sembcorp Industries, a Singapore-based energy and infrastructure company, is in a dispute with NCC over the construction of a thermal power plant in Andhra Pradesh. The arbitration is expected to be resolved soon, and the outcome could have a significant impact on NCC's financial performance.

The stock is down about 0.88 percent in the last five days and 1.96 percent in a month.

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