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
Good morning, ladies and gentlemen.
I'm Akash, moderator for the conference call.
Welcome to NBCC
Thank you so much, sir.
The next question comes from the line of Mr. Hardik Chheda from Lark Consultancy.
Please go ahead with the question, sir.
Hardik Chheda Sir, how would you see the margin profile going ahead?
Because some of the orders now which we are executing are high margin.
So, do you see the margins going up from here every quarter, or will they stay where they are?
How do you see the margin profile for the next two to three quarters?
K.P.
Mahadevaswamy Definitely, it is going to increase because our redevelopment and Amrapali projects is contributing more than 60% of our total revenue.
These projects are high-value projects, right, PMC projects.
Definitely, our margin is going to increase.
Hardik Chheda Any rough idea, sir, by how much could you just give a ballpark range by how much you expect the margins to go?
NBCC (India) Limited
Thank you so much, sir.
The next question comes from the line of Mr. Vasudev Ganatra from Nuvama Wealth Management Limited.
Please go ahead, sir.
Vasudev Ganatra Yeah.
Thank you for the opportunity, and congratulations on a great set of numbers.
Sir, if you can just tell us about this INR 1,27,000 crore order book that we have, what is the split between PMC and redevelopment in this?
K.P.
Mahadevaswamy PMC around 40%, 60% on redevelopment on standalone level.
Vasudev Ganatra Okay, sir.
And this, you just mentioned in an earlier participant's question that INR 50,000 to 60,000 crores of new orders are we looking for this year?
So, is it just from the 5 GPRA, you said, or this is the total order inflow?
K.P.
Mahadevaswamy Total.
Only GPRA around INR 30,000 crores we may get.
Apart from GPRA, we are expecting two, three big orders.
So that altogether, INR 50,000 to 60,000 crores we are expecting.
NBCC (India) Limited
Yes, sir.
K.P.
Mahadevaswamy Goa, already, we have ordered four packages.
On two packages, tender is to be done.
So, Goa, also, we are through.
Goa already is in, the site mobilized and work also started.
NBCC (India) Limited
Sorry to interrupt you, Vasudev, sir.
Vasudev Ganatra Sir, this the last question.
Anjeev Kumar Jain Cash is INR 666 crore as on 30th June.
Vasudev Ganatra So, it was INR 6,500 crores last quarter, so no comparable figure.
Anjeev Kumar Jain No. INR 666 CR, I'm saying.
Vasudev Ganatra NBCC (India) Limited
Thank you so much, sir.
The next question comes from the line of Girija Ray from Nirmal Bang Securities Private Limited.
Please go ahead.
Girija Ray Hi, good morning, sir.
Thanks for taking my question.
I think I have missed a few things.
This redevelopment project, you mentioned, the kind of order book we are expecting.
What is that, you know, any idea?
What was the amount we are expecting, redevelopment project?
K.P.
Mahadevaswamy Future project?
Girija Ray Sorry?
K.P.
Mahadevaswamy Future projects or redevelopment projects?
Girija Ray Redevelopment project.
In your opening remarks, I think the second participant, he was asking, yeah.
K.P.
Mahadevaswamy Around total order book around 60% redevelopment, 40% PMC or EPC.
PMC only, not EPC.
Girija Ray NBCC (India) Limited
Thank you, sir.
Ladies and gentlemen, if you have any questions, please press * and 1 on a telephone keypad.
I repeat, if you have any questions, please press * and 1 on a telephone keypad.
The next question comes from the line of Mr. Pankaj Kumar from Kotak Securities.
Please go ahead, sir.
Pankaj Kumar Yes, sir.
Thanks for taking my question.
Sir, if you look at the revenue booking in this current quarter, we've seen 10% overall growth and even in the PMC, we've seen 12% growth.
So, is there any specific reason related to this quarter that's why there is a lower growth?
Because if you look at the full-year targets, you mentioned INR 16,000 to 17,000 crores of sales in FY27. K.P.
Mahadevaswamy On standalone basis, we have a growth of 10%.
But unfortunately, due to one of our subsidiaries, that is HSCC, our turnover revenue dipped down due to merger and one project that were done on a very low PMC fee, Maharashtra government project, which we have foreclosed.
So, due to that, the turnover got down, but anyhow, the profit is increased.
NBCC (India) Limited
Thank you so much, sir.
The next question comes from the line of Prem Luniya from Astute Investment Management.
Please go ahead, sir.
Prem Luniya Hello.
Can you hear me?
K.P.
Mahadevaswamy Yes, please.
NBCC (India) Limited
Thank you so much, sir.
The next question comes from the line of Ankita Shah from Elara Capital.
Please go ahead, ma'am.
Ankita Shah Yeah, hi.
First, what has been the key reason for the delaying project awarding?
The project that we've already got, but yet to be awarded to the contractors, almost INR 95,000 crores in pending.
What stops us?
I mean, what is the reason for this?
K.P.
Mahadevaswamy Ma'am, these projects are large project, self-sustainable projects, not redevelopment exactly.
I'll not put the word redevelopment.
Of course, it is a redevelopment.
Like J&K project.
It is INR 15,000 crore project.
It is self-sustainable mode project wherein so many government clearance required.
So, government has to give the clearance, and DPR has to be prepared.
DPR, we have prepared.
Now we got the approval.
After one and a half years, this project is take off rather.
Similarly, MAHAPREIT is a big value, INR 25,000 crores, but it is getting delayed due to various reasons.
And the other project, Supertech.
Supertech went to insolvency, the builder went to the Supreme Court, but, fortunately, we would get the order once again as per the Supreme Court.
Now, we are going to call the tender of Supertech also.
So, these are all the reasons for major projects delay.
Around INR 50,000 crores work order got delayed due to various reasons and various approvals.
That's all.
Nothing else.
Pardon me?
You wanted to say something?
NBCC (India) Limited
Okay.
Thank you.
The next question comes from the line of Sumeet Rohra from Smartsun Capital Private Limited.
Please go, sir.
Sumeet Rohra Yeah.
Hi, sir.
Good morning to you.
Sir, the thing is that your standalone numbers are clearly very encouraging.
But, sir, the way the market is actually looking at it is that, you know, the things that you have an order book today of INR 1,27,000 crore.
You have said repeatedly that you're going to get those INR 50,000-60,000 crore.
NBCC (India) Limited
I'm really sorry, sir.
I believe Mr. Sumeet has left the line.
K.P.
Mahadevaswamy Okay.
So, your next question then.
Otherwise, I can reply both questions at a time.
Sure, sir.
We'll take on the next question from Mr. Daksh Malhotra from Aadriv Global.
Please go ahead, sir.
NBCC (India) Limited
Thank you so much, sir.
We have Mr. Sumeet Rohra from Smartsun Capital Private Limited back to the call.
Please go ahead with the question, sir.
Sumeet Rohra Yeah.
Hi, sir.
My sincere apologies.
My call is dropped.
K.P.
Mahadevaswamy I missed you in between.
Sumeet Rohra So, coming back to the point, sir, so under your and Anjeev’s, sir, leadership, I mean, there is absolutely no question of the fact that, you both will take this company to a different height.
But, sir, just that, you know, as you explained to the last participant as well, that there are a little bit of confidence-building measures which need to be, and you explained so much in detail.
So, I won't be repetitive to ask the same thing again.
NBCC (India) Limited
Thank you, sir.
We have one follow-up question from Mr. Vasudev Ganatra from Nuvama Wealth Management.
Please go ahead, sir.
Vasudev Ganatra For the follow-up opportunity, sir, just one update on the Dubai operations.
Where are we over there?
Pradeep Sharma NBCC (India) Limited
Thank you so much, sir.
There are no further questions.
Now, I hand over the floor to Mr. K.P.
Mahadevaswamy for his closing comments.
K.P.
Mahadevaswamy In GPRA redevelopment, all major packages are under execution with approximately INR 10,000 crore of balance work.
We'll be going to execute within two years.
Successfully sold entire Bharat business park in only three to four months in three auctions and few more projects are in the pipeline for sale auction that includes the Vinayak Mandir Marg, Scindia Marg, and Africa Avenue apartment.
Amrapali Projects, Phase 2 execution, has come across multiple packages and is expected to contribute significantly to revenue and bottom line, that is, profitability in coming quarters.
J&K Satellite City, INR 3,500 to 4,000 crores tender will be uploaded very soon.
Supertech project is going to be awarded in the upcoming months.
Naveen Nagpur, infrastructure work also is going to float shortly.
So, one thing apart from this, wanted to share with you.
When HSCL was taken over, it was in a highly unorganized condition.
For almost 29 years, there had been no recruitment, no proper systems were in place, and the headquarters was in Kolkata.
Despite these challenges, the company has the potential to achieve Mini Ratna status.
Similarly, NBCC today has a very strong order book, enjoys excellent confidence from investors and being a listed company has a very bright future.
Whatever commitments we make, we make them with full sincerity and responsibility.
Just as we transformed a loss-making company into a profit-making and NBCC (India) Limited
Thank you so much, sir.
Dear investors, if you have any further questions or require additional information, please reach out to Mr. Balkishan Singla, Investor Relations, NBCC.
Ladies and gentlemen, this concludes your conference for today.
Thank you for your participation and for using Door Sabha's conference call service.
You may disconnect your lines now.
Thank you, and have a pleasant day.
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Questions and answers
Moderator · Conference Operator
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 a 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 on a telephone keypad.
The first question comes from the line of Mr. Venkatesh Subramaniam from Logic Tree Consultants.
Please go ahead, sir.
Venkatesh Subramaniam Good morning.
Congratulations on improving performance, sir.
My question is with respect to two things.
One is the order inflow.
In the last seven to eight months, you have indicated that there are prospective orders, which are supposed to flow to NBCC to the tune of INR 60,000-80,000 crores, especially you were talking about a couple of large orders.
NBCC (India) Limited