InvestorQ : I am holding shares of NCC and 5 shares of MRF. What is you take on both the stock after the results on 09 November?
Rashi Mehra made post

I am holding shares of NCC and 5 shares of MRF. What is you take on both the stock after the results on 09 November?

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Archita Jajjoo answered.
3 weeks ago
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Let me start with NCC. Revenues were up 51.11% for Sep-21 quarter at Rs.2,581 crore. In the Sep-21 quarter, NCC reported securing construction and project orders worth Rs.2,440 crore from various agencies. NCC’s total order book position stands at an enviable level of over Rs.39,112 crore with execution spread over next few years.

Net profits rose 76.33% at Rs,113.91 crore supported by higher revenues and an exceptional gain of Rs.32 crore which offset the 57% raw material inflation and the 55% spike in construction and sub-contracting costs. Net margins at 4.41% compared favourably with 3.78% in Sep-20 quarter and 2.42% in Jun-21 quarter. Net cash from operations dipped to negative zone.

MRF Ltd reported robust 15.63% growth in sales at Rs.4,908 crore. MRF’s core business of manufacturing tyres, tubes, flaps, tread rubber and rubber chemicals saw a revival in demand from the OEM and replacement market. However, MRF saw inventory holdings spike due to supply chain constraints resulting in negative cash flows.

Cost spikes led to net profit falling by -54% at Rs.189 crore in the Sep-21 quarter. During the quarter, the raw material cost spiked by 69% yoy resulting in tremendous pressure on the bottom line. MRF had to take an indirect hit from the chip shortage as it impacted auto production across most of the large companies.

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