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BW Businessworld

Art Of Staying Relevant

With his focus on quality and strict timelines, Raju has nurtured NCC and made it one of the most respected names in the construction sector

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AAV Ranga Raju, Managing Director NCC has consistently shown what great leaders are made of. His contribution to the infrastructure sector is replete with examples of risk-taking, foresight and an indomitable will to emerge winner despite all odds.

With over four decades in the construction industry, Raju has nurtured NCC and established it amongst the most respected names in the sector.  He has built on the strength of its hardworking employees and attributes the success to the talent, dedication and cooperation with the clients of the same. He acknowledges the efforts and informed BW Businesworld, “It is the employees who are responsible for delivering on clients.”

Today NCC is not just one of the largest, but most respected infrastructure construction companies in India. He has been a consistent performer, delivering profit even when the market downturns have forced many infra companies to shut shop or go bankrupt.
For Raju commitment, focus on quality and sticking to timelines, are factors that have made NCC what it is today.

“Quality, timely completion, and commitment have helped NCC strengthen its place in the league of large infrastructure companies. Never hesitate to go an extra mile,” says Raju.

“We are convinced that our tried and tested business model has even more prospects to further build on”, he adds.
Over the years it is NCC’s credibility that has put this infra giant on the steady path of success and being part of some of the top national projects.

 What is commendable to also note is the strong strategic grip of Raju and the clear crisp targets set for the management to work towards, setting the house under good discipline.

There are many instances when Raju has displayed extraordinary leadership and taken NCC to greater heights by monetising its assets and reducing the debt. For example in 2014, when the peak debt of the company was around Rs 2,800 crore, the company went for a rights issue in October the same year and utilised the money towards debt reduction in the standalone balance sheet.

The company did face the heat of the economic slowdown like the others. The revenue multiplied but earnings remained low. The firm ended FY2015-16 with revenues of Rs 9,583 crore, with a net profit of Rs 110.5 crore against Rs 3,635 crore with a net profit of Rs 167.5 crore for the year 2007-08. However, the company made an effort to put the debt in the right order.

“We have ensured that our systems and processes are in line with the market demands, to be future ready. We are committed to strengthening our skill sets and make NCC a truly client-centric organisation. All of these instill in us the confidence to ride the next wave of growth,” explains Raju.

His unique style of leadership puts the onus on opportunities even if they come with compulsory risks. To steer his company safely through market risks, Raju has put in place a specialist risk management team along with senior project and financial team to examine and analyse the possible tender proposals or investments.

“I welcome you to read our risk and risk mitigation strategies under Management Discussion and Analysis,” adds Raju.

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