FUTURE NCC Chairmans Speech

Dear Shareholders,

On behalf of the Board of NCC Ltd it is my pleasure to present the Annual Report and Audited Financial Statements for the year ended 31st March, 2017; to review our performance for the year and to outline our future direction.


During the year under review (FY 2017) our Company on a standalone basis has achieved a top line of Rs, 8032 crore as compared to Rs, 8549 crore in the previous year. The decline in the turnover is mainly on account of slowdown in the economy in the second half of FY-17. The Company has reported an EBITDA of Rs, 685.17 crore, Net profit of Rs, 225.50 crore and Earning per share Rs, 4.06. On a consolidated basis the topline is Rs, 9204 crore as compared to Rs, 9660 crore in the previous year and reported an EBITDA of Rs, 669.72 crore, PAT of Rs, 31.68 crore and EPS Rs, 0.57.


Keeping in view the tight liquidity situation the Construction and Infrastructure Industry is passing through and the need to conserve and optimize the use of resources, your Board recommended Dividend of Re.0.40 per Equity Share of Rs, 2/- each (20%) for the consideration and approval of the members of the Company at the forthcoming Annual General Meeting.

Economic Scenario

India''''s economic growth fell to 6.1 per cent in the fourth quarter (Q4) of 2016-17, primarily because of slow down of economy due to demonetization adversely affecting economic activity. The sectors worst affected were construction, real estate and financial services. Construction activity reported a negative growth of -3.7% in the fourth quarter.

As per the advance estimates released by the Central Statistics Office, the growth rate of GDP at constant market prices for the year 2016-17 is placed at 7.1%, as against 7.9 % in 2015-16.

The Road Ahead

In the Union Budget 2017-18, the Government of India has increased the total infrastructure outlay by 10 per cent to Rs, 3,96,135 crore. Railway expenditure allocation has increased by 8 per cent to Rs, 1,31,000 crore (US$ 19.58 billion) for laying 3,500 km of railway lines in 2017-18. Affordable housing has been given infrastructure status. Lock-in period for long-term capital gains on land and buildings has been reduced from three to two years. The Central Electricity Authority (CEA) expects investment in India''''s power transmission sector to reach Rs, 2.6 lakh crore (US$ 38.85 billion) during the 13th Five Year Plan. (2017-22), and to enhance the transmission capacity of the interregional links by 45,700 megawatt (MW).

The monetization of 75 publicly funded highway projects of value Rs, 35,600 crore (US$ 5.32 billion) via toll-operate-transfer (TOT) mode will fetch adequate funds to finance road construction of 2,700 km length of roads.

We at NCC are hopeful that the Company will benefit from the renewed thrust on infrastructure sector. Moreover we have the competitive advantage of handling large projects and have a record of completing large-sized marquee projects within stipulated timelines which enhances our ability to bag repeat orders. The Company''''s considerable improvement in credit profile over the last 2 years with the rights issue of Rs, 600 crore and monetization of BOT assets and reduction of debt and financial costs during the year confirms our operational resilience. Your Board is optimistic that the Company will post improved performance in the years to come.

I take this opportunity to thank our team, customers, shareholders, suppliers, banks, Central and State Government agencies for their continued support.

Yours truly

Hemant M Nerurkar


CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.

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