NBCC — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

Moderator · Conference Operator

Ladies and gentlemen, good day, and welcome to the NBCC Limited Q3 and 9M

Thank you, sir.

Ladies and gentlemen, we will now begin the question-and- answer session.

If you have a question, please press * and 1 on your telephone keypad, and wait for your turn to ask the question.

If you would like to withdraw your request, you may do so by pressing * and 1 again.

First question comes from Ravi Naredi from Naredi Investment.

Please go ahead.

Ravi Naredi Sir, land at Ghitorni, now court decision came and NBCC to developed 21.23 acre land.

You told in Q2 con call that net profit might become INR 4,000 to INR 5,000 crore.

So, it is visible now in this financial year likely to receive this amount?

Mahadevaswamy We are going to start this project by next year.

So now the settlement is over, we have made the payment to GNTCD.

Now we have to call the consultant tender.

Hopefully, March, we are going to call the consultant tender.

In one or two months, the consultant will be finalized.

By next year the construction and sale will going to take place.

It is around INR 4,000 to INR 5,000 crore profit will be there.

PAT will be there, bottom line.

NBCC India Limited

The next question comes from Dixit Doshi from Whitestone Financial Advisors Private Limited.

Please go ahead.

Dixit Doshi Yeah, thanks for the opportunity.

Sir, two, three questions from my side.

Firstly, if you can give a clarification whether this INR 1,26,000 crore of order book, does this include the INR 10,000 crore Supertech or it doesn't?

Mahadevaswamy Included the Supertech.

Dixit Doshi NBCC India Limited

The next question comes from Akshay Patil from NBCC (Individual Investor).

Please go ahead.

Akshay Patil Hello?

Mahadevaswamy Yes.

Tell me.

Akshay Patil NBCC India Limited

The next question comes from Kriti Jain from Ratnabali Securities.

Please go ahead.

Kriti Jain Hi, sir.

I had a question that what will be the size for the Maharashtra Port Order?

Mahadevaswamy Maharashtra Port Trust, I mean Mumbai Port Trust?

Kriti Jain Yeah, Mumbai Port Trust.

Mahadevaswamy We're going to start the work.

Next year onwards, it will be converted, and it will be started.

Already, we are doing master plan on that.

It will be a big order.

Currently, that CGO Complex, that's first thing we are taking on priority because Mumbai Port Trust is having almost 300 acre land.

So, first of all, we're going to start CGO Complex.

That itself is around INR 10,000 crores value for infrastructure and development.

And if you start construction, it will be a big value.

Currently, yet to assess the exact value.

So, we are preparing master plan and all.

It is a big order, I can say.

Kriti Jain Okay, sir.

And one more question.

So, HUDCO had recently signed an MoU with Chhattisgarh Government to provide financial assistance of INR 1 lakh crores in the next five years.

Can we expect some of it to come towards NBCC as well?

Mahadevaswamy NBCC India Limited

The next question comes from Vasudev from Nuvama.

Please go ahead.

Vasudev Ganatra Yes.

Thank you for the opportunity, sir.

So, when most of the questions are answered, I just need a few numbers.

So, out of this total amount INR 1,27,000 crores of consolidated order book that we have, what would be a rough split between the PMC and the redevelopment?

And out of this, how much of the projects, like, in value terms is currently work is ongoing?

Mahadevaswamy In terms of other PMC, 40%, around INR 45,000 crore, and 60% redevelopment means INR 67,000 crores on standalone.

However, consolidated order book is 1,26,000.

Vasudev Ganatra Okay.

And out of this, how much of the work is still ongoing currently?

The works are ongoing?

Mahadevaswamy NBCC India Limited

The next question comes from Ashwini Damani from Ratnabali Securities.

Please go ahead.

Ashwini Damani NBCC India Limited

The next question comes from Dixit Doshi from Whitestone Financial Advisors Limited.

Please go ahead.

Dixit Doshi Yes.

Thanks for the opportunity again.

So, I have a question regarding the Delhi redevelopment project.

So, you are saying that if it comes, then it could be INR 30,000-40,000 crores of order book.

So, let's say, even if it doesn't come this year, but let's say, it comes Q1 of the next year, then how much time does it take to start the work; around a year or more?

Mahadevaswamy For start of work, we are already making the preparatory work and all.

Survey is going on, and we are in the process.

Six months to eight months, we can start the project, and the project duration will be three to four years.

Dixit Doshi Okay.

Six to eight months.

So, if it comes, let's say, by Q1, then FY28, we will start seeing the revenue from those projects as well?

Mahadevaswamy Yes, yes.

Definitely, definitely.

Dixit Doshi Okay.

And any update on land parcels in Mumbai?

I think you were in discussion with some of the PSUs.

Mahadevaswamy Yes.

Discussion is going on, HOCL, BPCL, ONGC.

So, we are discussing.

I think next year, it will go into mature.

NBCC India Limited

The next question comes from Ravi Naredi from Naredi Investment.

Please go ahead.

Ravi Naredi Thank you very much, again.

Sir, FY28, the bottom line, you are predicting INR 2,000 crore, while in my earlier question, you told Ghitorni and Gurugram 37D, gives us INR 4,000-5,000 crore net profit.

So, why the difference is a big figure?

Because in 27-28, we will finish Netaji Nagar at INR 4,000 crore, INR 1,500 crore Sarojini Nagar, INR 10,000 crore Mumbai Port Trust we will start.

Rajasthan Mandapam, we will start.

J&K, we will start.

So, what is your prediction exactly or realistic for FY28 top line and bottom line?

Mahadevaswamy One thing I'll tell you, in PMC projects, we are going to get the top line as well as bottom line immediately.

Whereas real estate project, my turnover and my bottom line, it will come after finishing of the property.

So, there we are giving conservative figure, it may increase but I’m not telling only 2000 Cr, conservative figure of 2000 Cr I’m saying, but once Ghitorni as well as that 37D,s possession is over, then the figure will be something else; maybe it will be twice of this number.

In ‘29, definitely, this figure will be almost double.

Because if the Ghitorni property, whenever we are going to handed over to the respective buyers, then only I can book the bottom line as well as top line.

That is the constraint, that’s all, nothing else.

Figures are achievable still I’m confident, we are going to achieve.

The only thing, when you are going to hand over the possession because we have a lot of approvals, transactions, sales.

NBCC India Limited

The next question comes from Pankaj Kumar from Kotak Securities.

Please go ahead.

Pankaj Kumar Yes, sir.

Thanks for taking the question.

Sir, you said roughly INR 12,000 crore of project that you are looking to award in the current financial year on a consolidated basis.

So, what is the standalone number?

And what are the targets for FY27 on consolidated and standalone basis in terms of project?

Pankaj Kumar Yeah, tender awarding.

Mahadevaswamy Around INR 8600 to 9000 crores till date in this financial year.

NBCC India Limited

The next question comes from Anjali Bajaj, an individual investor.

Please go ahead.

NBCC India Limited

The next question comes from Akshay Patil from NBCC (Individual Investor).

Please go ahead.

Akshay Patil Hello, sir.

For this financial year, what PAT you are expecting?

Even if some exceptional items if you include in the coming quarter, in spite of everything, what PAT are you expecting for this financial year?

Mahadevaswamy INR 700 crores to INR 800 crores.

Akshay Patil INR 700 crores to INR 800 crores.

Okay.

Sir, and one more thing, for the next financial year, we have seen that the Delhi Air Pollution Control has been continuously impacting the revenues and profitability of NBCC in the third quarter.

So, what steps are you taking so that in the future, it doesn't impact the revenue and the profitability much in this quarter?

Because the third and fourth quarter, are they mostly productive and most of the work is done in the third and fourth quarter, are you planning to shift something more work in the first or in second quarter?

Is it possible?

Or any other measures if you are taking?

Please enlighten us on that.

Mahadevaswamy Definitely.

We recently awarded around INR 3,000 to 4,000 crore work.

So that we will going to start immediately.

Now, our main target is focus on first and second quarter and we push as many as possible in turnover booking.

And, of course, we are taking all other precautions to mitigate the pollution, using water sprinkler, dust free construction, various other things, we are doing.

Unfortunately, this time, it was very stringent and lack of rain also.

Delhi NBCC India Limited

Thank you, sir.

There are no questions.

Now, I hand over the floor to the chairman of NBCC, Shri K.

Mahadevaswamy.

Mahadevaswamy We have awarded Rs.

8600 Cr till date and Rs.

4000 Cr of Tenders in Pipeline for awarding in upcoming Quarters on consolidated level.

Ghitroni Project

Resolution of project enables NBCC to develop high potential revenue real estate project nearly ₹8,500 crore for long term value creation.

We know that supertech project is challenging work however our experience and expertise in Amrapali project will give use confidence and motivation to complete this project on time and deliver these housing units to home buyer for which they are waiting for many years.

After successful story of Central Govt redevelopment projects, NBCC is now gearing for state projects in this line.

The Rajasthan Mandapam project is expected to be awarded shortly.

NBCC India Limited

Moderator · Conference Operator

Thank you, sir.

For any further query, please contact Mr. Balkishan Singla, Investor Relations, NBCC.

Ladies and gentlemen, this concludes your conference for today.

Thank you for your participation.

You may disconnect your lines now.

Thank you, and have a pleasant day.

Note

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