NESCO Reports Robust Q2 Growth with 26% Revenue Surge and 9% Profit Increase

Nesco Limited, a diversified company with interests in real estate, exhibitions, and industrial products, has announced its financial results for the second quarter, showcasing strong growth across key financial metrics.

Revenue and Profit Growth

Nesco reported a significant increase in its quarterly revenue, which rose to ₹2.40 billion, up from ₹1.90 billion in the same period last year, marking a robust 26% year-over-year growth. The company's net profit also saw a healthy increase, reaching ₹1.20 billion compared to ₹1.10 billion in the corresponding quarter of the previous year, representing a 9% growth.

EBITDA Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed improvement, rising to ₹1.40 billion from ₹1.20 billion in the year-ago period. However, the EBITDA margin experienced a slight decline, decreasing to 57.32% from 62.24% in the previous year.

Segment-wise Performance

Nesco's financial results reveal strong performances across its various business segments:

Segment	Revenue (in crore rupees)	Profit before tax & finance costs (in crore rupees)
Realty	100.14	83.24
Bombay Exhibition Center	75.01	45.28
Indabrator	10.00	1.49
Foods	54.03	5.25

The Realty segment emerged as the top revenue generator, followed by the Bombay Exhibition Center. The Foods segment also showed substantial contribution to the company's revenue.

Financial Position

As of September 30, Nesco's balance sheet reflected a strong financial position:

Total Assets: ₹3,353.12 crore
Total Equity: ₹2,798.75 crore
Cash and Cash Equivalents: ₹12.51 crore

Management Commentary

Krishna S. Patel, Chairman and Managing Director of Nesco Limited, commented on the results: "We are pleased with our performance this quarter, which demonstrates the resilience and strength of our diverse business portfolio. The significant growth in revenue and profit underscores the effectiveness of our strategic initiatives and the robust demand across our business segments."

Looking Ahead

While Nesco has not provided specific forward-looking statements, the company's strong Q2 performance and diverse business model position it well for continued growth. The company's focus on its core segments of Realty, Exhibitions, and Industrial Products appears to be yielding positive results.

Investors and analysts will likely keep a close eye on Nesco's EBITDA margins in the coming quarters, given the slight decline observed in Q2. Additionally, the performance of the Bombay Exhibition Center segment may be of particular interest, as it recovers from the impacts of the global pandemic.

Nesco's Q2 results demonstrate the company's ability to drive growth and maintain profitability in a dynamic business environment. As the company continues to leverage its strengths across various segments, it remains well-positioned to capitalize on emerging opportunities in the Indian market.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.23%	-8.34%	-9.99%	+35.07%	+24.54%	+148.29%

Nesco Limited has announced a significant revision to its Wayside Amenities Project in collaboration with National Highways Logistics Management Limited (NHLML). The company has decided to abandon two of the three initially awarded locations in the South Zone due to feasibility and viability challenges.

Project Revision Details

NESCO has provided the following updated information about the project:

Aspect	Details
Sites Retained	1 out of 3 initially awarded
Investment Cost	₹75.00 crore for the single site
Estimated Annual Revenue	₹115.00 crore (from the fourth year of operations)
Annual Lease Rent	₹5.53 crore (with fixed annual revision based on WPI and CPI increase)

Background and Implications

The original letter of award from NHLML, communicated to the exchanges on January 6, granted NESCO the rights for developing, operating, and maintaining Wayside Amenities at three sites in the South Zone on the Bengaluru Chennai Expressway Corridor (Phase II) Section.

Following a joint inspection of the sites and discussions with vendors regarding the scope of work, NESCO identified significant challenges at two of the allotted locations. Consequently, the company decided to surrender these sites, a decision that NHLML has accepted.

Financial Impact

NESCO has clarified that there are no financial implications imposed by NHLML due to the surrender of the two sites. The company will proceed with the development of the single viable location, focusing its resources and efforts on maximizing the potential of this site.

Looking Ahead

While the project scope has been reduced, NESCO remains committed to the development of the Wayside Amenities. The expected annual revenue of ₹115.00 crore from the fourth year of operations suggests a potentially lucrative long-term opportunity for the company, despite the initial setback.

The revision of this project underscores the importance of thorough site assessments and flexibility in large-scale infrastructure developments. As NESCO moves forward with the single site, stakeholders will likely be watching closely to see how this focused approach impacts the project's overall success and the company's performance in this sector.