NBCC (India) Ltd, a state-owned infrastructure and real estate development company, has recorded a 16% decrease in its consolidated net profit for the second quarter of the fiscal year. This decline is attributed to the provisioning for expected losses in a Gurugram housing project. The net profit was reported as Rs 81.90 crore, down from Rs 97.72 crore in the same period the previous year. Despite this, the total income saw an increase, rising to Rs 2,129.09 crore from Rs 2073.89 crore.
The company derives 93.22% of its business revenue from the Project Management Consultancy (PMC) segment and redevelopment works, making it a preferred partner of the government for infrastructure projects. The profit decline in the September quarter was due to an exceptional item of provisioning of losses amounting to Rs 65.39 crore. This pertains to its residential real estate project ‘NBCC Green View’ in Gurugram. Structural issues in the project led to building evacuations and subsequent settlements with homebuyers and allottees.
NBCC’s buyback offers were reconsidered following uninspiring responses from buyers. The company has indicated its willingness to refund the entire amount received from complainants with a 6% simple interest per annum. Moving forward, it remains to be seen how NBCC will navigate the challenges presented by its Gurugram housing project and continue its performance in the coming quarters.
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