Ladies and gentlemen, good day and welcome to the NBCC (Indore) Limited Q4 and FY25 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please dial our operator by pressing star and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Nadisha from ICICI Securities Limited. Thank you, and over to you, ma'am.
Thanks, Nadisha. Good morning. On behalf of ICICI Securities, I welcome you all to the Q4 FY25 earnings call of NBCC (Indor.) Limited. Today, we have with us from the management, Sri K.P. Mahadevaswamy, Managing Director, Sri Saleem Ahmad, Director Projects, Dr. Suman Kumar, Director Commercial, Sri Anjit Kumar, Director of Finance, Sri M.D. Singha, Executive Director Finance, and Sri Balkrishan Singla , Investor Relations. We will begin with opening remarks from the management, followed by Q&A. Thank you, and over to you, sir.
Hello. Good morning to everyone. A warm welcome to all of you, and I appreciate your presence in today's earnings call for the fourth quarter ended on 31st March 2025. In the last quarter, we have shared that NBCC has secured excellent MOU rating for the financial year 2023-24 after five years, based on the Department of Public Enterprises' appraisal with 98.5 marks, highest in NBCC history. Just to add on to the above, the Department of Public Enterprises has released a consolidated performance rating last week, which evaluated 84 CPSE, and NBCC ranked second among all CPSE and number one in the consultancy and construction sector. For quarter four, our standalone operation and execution, we have achieved a total operating income of 3,218 crores, reflecting a 7% year-on-year increase. Additionally, our PAT stands at 137 crores, marking a significant 34% year-on-year growth.
For the full year, we have achieved a total operating income of ₹8,725 crores, with an 8% year-on-year increase, and PAT stands at 476 crores, making a 38% growth. For the 12-month consolidated performance, NBCC has achieved a total operating income of ₹12,039 crores, reflecting a 16% year-on-year increase with a 557 crore PAT, resulting in a significant 35% year-on-year growth. Last financial year, 2024-25, was a very historical financial year for NBCC in view of various milestone achievements. NBCC's standalone order book has crossed the ₹1 trillion mark, and now we are standing at a historical all-time high of ₹104,000 crores and a consolidated level order book of ₹120,000. Just to add, our order book has increased more than 100% from last year, highlighting the exponential growth in the redevelopment sector.
Historically, our running tally of projects averaged around 16,000-18,000 crores. Now it has surged to 32,000 crores, a 100% growth. NBCC is being a pioneer in delivering home and stressed real estate projects and giving relief to thousands of stressed home buyers in the country. In this area, we started phase two of the Amrapali project, where we have awarded around 10,500 crore worth in different packages in quarter four, which makes it one of the highest-ever worth awarded in NBCC's history in a short period of time. Work has started in full swing on constructing 8,258 now number of houses in Amrapali. NBCC has shown great efforts in marketing and sales of real estate units.
Phase two of the Amrapali project, where we have successfully sold around ₹6,800 crore residential units through open-air auction, which is a very significant sale and will help in executing Amrapali projects. Business secured. NBCC has secured a historical amount of business in the last financial year that is around 60,000 crores on a standalone basis and 75,280 crores on a consolidated level basis. This is one of the highest-ever businesses secured in any financial year. This marks a significant growth of around 265% in standalone business secured from the last year. Business awarded to the contractor. As we are all aware, NBCC has secured a lot of new business in the last few quarters. However, in the last three to four months, we have focused more on execution and shown our commitment towards the completion of these projects.
In this regard, in quarter four only, we have awarded around INR 17,000 crores to new tenders on a consolidated level, which increases our turnover tally of running projects. In the current scenario, the company has identified the need to accelerate the execution speed in order to ensure timely execution of the order book. Accordingly, focused efforts are being made to expedite the award of work and initiate projects without delay. We have been targeting INR 25,000 crores of awarded new tenders in the financial year 2024-25. However, we have awarded almost INR 23,250 crores in the financial year 2024-25, which is 130% higher than the last year, and the upcoming year, it will be a large in view of the large order book. Regarding Amrapali projects, for the financial year 2024-25, Amrapali project has contributed INR 1,529 crores in the top line. For phase two work, I have already updated above. Redevelopment projects.
For the financial year 2024-25, 7GPRA project has contributed around INR 2,500 crores in the top line by up of 85% from the last year. Netaji Nagar. The first phase of the project, valued at INR 1,450 crores, is currently underway and is 91% almost completed. Additionally, two more tenders worth of around INR 2,000 crores were awarded recently, and INR 1,900 crores work is in the pipeline to be awarded in the Netaji Nagar. Sarojini Nagar. This is a large project and works in more than nine packages with worth of INR 5,500 crores going on, which are on different stages of execution. Additionally, three more tenders worth of around INR 2,500 crores are awarded recently, and INR 2,700 crores in the pipeline to be awarded in Sarojini Nagar. Thank you. Now, the forum is open for questions and answers.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sumit Rohra from SmartSync Services. Please proceed.
Yeah, hi sir. I mean, a very good morning to you and your entire team at NBCC. Firstly, sir, I mean, I would like to congratulate you on a very good performance which you have reported in this financial year and also on securing a very good amount of orders as you highlighted. Now, sir, I would like to have about a few questions, so if I can just shoot them to you and then you can address them. So sir, now given the order book of INR 120,000 crores today on a consolidated basis, what is the duration, sir, you have to basically execute these orders? If you can also please help us understand that in the last financial year you reported INR 12,000 crores of revenue. So what's the revenue number that you think that we can expect for the current financial year?
Sir, secondly, as you've highlighted that your order book has expanded very sharply this year. So what do you expect are the forthcoming orders or the kind of order value which we can add in the current financial year? Now, sir, my question, this one is a bit on the result. There is an exceptional item, point number six, which is of INR 95.65 crores. Can you, sir, explain what is this exceptional item and is this a recurring item in the P&L? Also, sir, under expenses, there is something of about INR 47 crores write-off. What is this write-off? And if you can just throw a bit of light on that. One more question, sir, I had, if I may, was basically on the Mehrauli project. Is there any progress on the Mehrauli project and do you expect something on the project to start? Many thanks, sir.
Yes. Thank you. Sumit, first of all, two questions I will answer and two questions will be answered by my DF. One is usually for PMC projects, the completion period will be only two to three years, whereas in redevelopment projects, it at least requires three to four years because we have to arrange the money and we have to get the clearance from the various statutory authorities. This is the timeline, and regarding this year, we are going to definitely achieve or cross more than INR 15,000 crores to INR 16,000 crores. This is our top line. Regarding exceptional item and all, our DF will answer to you.
Sumit, good morning.
Good morning, sir.
Now, sir, regarding this exceptional item, let me clarify it because it is exceptional, it is not a non-recurring nature. It is not a recurring nature, basically. Okay? So it is exceptional one-time effect only. That relates to one of the projects we have carried out in the state of Kerala. There is some environment clearance pending, but because of some Supreme Court verdict, that environment clearance we are not able to get in this financial year. Though we are also assessing the legal or regulatory recourse available to the company, but as an abundant precaution, we have provided for INR 80 crores in this financial year. And apart from that, you must be aware of our project in the Gurugram, that 37D, some additional provision of INR 15 crores has been provided this year because we are going to start that project very soon.
And whatever allottees were there who have opted for the reconstruction option for settlement, we are providing the enhanced features in those flats. That's why INR 15 crores has been charged as an exceptional item. So taken together, it comes to be INR 95 crores as an exceptional item. As regard to write-back, it is basically a write-back is the reversal of impairment loss created earlier year through ECL. It is a normal course of entry taken place in every year account. Okay? And third one, your answer is regarding this Ghitorni and Mehrauli project. Mehrauli project, we maintained our guidance which we provided in the last con call. Soon starting the project and our trajectory will be the same, which we will discuss in the last con call. So we stand by our guidance as regard to Ghitorni.
Sure. And sir, there is basically on the new orders, because this year you added about INR 65,000-70,000 crores of new orders. So what is, I mean, the order intake you expect for the current year? And I mean, are there any particular projects which you think that we can get soon?
Current year, around we are expecting INR 22,000-INR 25,000 crores. We are talking with various state governments, that is Rajasthan government, Bihar government, even some Chhattisgarh government, state government, Telangana, wherein also Andaman and Nicobar. So wherein some redevelopment work as well as in Andaman and Nicobar, of course, it is a PMC work. So we are expecting a lot many, but at least the INR 22,000-INR 25,000 we will going to get added to our kitty.
Sure, sir. Sure. I'll come back in the question list, sir, in the list. Thank you, sir.
Thank you.
Wish you all the best.
Thank you. Thank you very much.
Thank you. The next question is from the line of Dixit Doshi from Whitestone Financial Advisors . Please proceed.
Yeah. Thanks for the opportunity. Sir, I have a few questions. Firstly, in terms of order book of this INR 120,000 crore, if you can break it up in terms of how much is PMC and how much is redevelopment, that's my first question. Secondly, you mentioned that almost INR 32,000 crore worth of projects are there where the work is already awarded. So what kind of new order we are planning to give for FY26? That's my second question. Third, regarding this exceptional item you mentioned, so if you can explain a bit, this is a completely developed project, like the inventory is ready, but we have not received the EC. And so EC is rejected or we are still planning to get the EC, and this may or may not get reversed in the future. So if you can explain that.
And the same question, so this is note number eight, the Kerala project. But there is one also note number six where there is a Faridabad project. I think there also the problem is related to EC. So do we expect a write-off from there as well?
First of all, one or two questions I will answer. The rest questions will be answered by my DF. Order book as far as PMC and redevelopment is concerned, around 48% is PMC, 52% redevelopment. Regarding financial year 26, we are going to get another INR 32,000 already is our running project. We will add another at least INR 10,000-INR 15,000 crore in these first two quarters. That is various projects of Northeast region as well as redevelopment projects. Redevelopment project tender is going on. So that will be added to our kitty. Regarding exceptional item, our DF will answer to you.
Yeah. Mr. Dixit, good morning. Regarding these two projects, this Kochi project as well as Faridabad, you mentioned about, both are different altogether. Kochi project is a developed project because we started that project way back in 2011. At that time, this environment clearance was not required at all. But thereafter, some notification came under the Environment Protection Act, it's 1986 for environment clearance. So later on, the Government of India through Ministry of Environment, Forest and Climate Change, they issued a notification 17 and 21. According to that notification, if environment clearance for a project has not been taken, then they allowed for an ex post facto approval of the project. Okay? Then we applied for that environment clearance ex post facto.
But that notification of the Government of India, these notifications have been quashed by the Supreme Court in their recent order because that notification has been quashed and our application for EC is pending with the authority. That's why, as an abundant precaution, we have provided the entire amount, ₹80 crore out of ₹87 crore because ₹3 crore worth of land is there. We have restated to the land, and the rest is taken as a scrap value in our books of account. As long as future is concerned, future is like that because this questioning has been done in a PIL petition filed by an organization, Vanashakti organization, and the government is contemplating for review. But definitely, I'm not able to tell you exactly what government is going to take.
But definitely, we are also seized with the judgment, and we are also assessing what legal and regulatory recourse are available to us. But as an abundant precaution for making our financial statement, we have provided for that. So that is about Kochi. And as far as Faridabad is concerned, it is not a case of EC. We have purchased that land. It is the NOC has been denied or not given by the Forest Department. That NOC is a prerequisite for getting the environment clearance from the authority. So we are just pursuing with the MCF as well as the Forest Department for issuing of NOC. But that NOC is not being issued because there is some case lying in the Supreme Court as regard to clarification on the definition of the deemed forest in that area.
So that's why, and we have assessed the net reserve value of that land, and that land total cost is INR 131 crore in our books of accounts as a gross value. We have already provided INR 10.73 crore as an abundant precaution towards the reduction in the net reserve value. I hope I am able to make you understand.
So the remaining INR 121 crore, we are not contemplating to write off?
It is not required. It is only land parcel.
It is only land parcel.
We have not constructed anything. We have to take the permission before the construction starts. So here, it is not applicable.
Okay. Okay. Just a couple of more questions if I can ask. One is how much of the order was from Supertech Limited? Because I think there is some stay which has been implemented over there. And second is, in our order book, we have added the INR 25,000 crore from Maharashtra government. So I think this is recent MOU which we have signed. So this is just an MOU, or I mean, the things have already worked out and something will start construction this year itself.
This is regarding Supertech, around ₹9,400 crore order. Supreme Court NCLT has given this order to NBCC. However, in Supreme Court, they are asking some more participation or some clarification. Hopefully, as soon as we will resolve, I think we will going to get this order in our kitty. This is regarding MAHAPREIT, already MOU has signed, and some sites already earmarked for redevelopment, Mumbai, that is in Thane clusters, and some redevelopment work, some Mukhyamantri Awas Yojana. So we are already in the process of appointing consultant and all. Some projects, already they are appointed the consultant also. That also, we will going to take. So this is already in place. I think this order is a sure guaranteed order, ₹25,000 crore.
Okay. Okay.
Minimum.
Minimum. Okay. That's it from my side. Thank you.
Thank you. The next question is from the line of Dhananjay Mishra from Sunidhi Securities. Please proceed.
Hello, sir. Am I audible?
Yes, yes. Audible. Please.
So for this year, we are targeting ₹10,000-₹15,000 to be awarded. And that includes Amrapali projects, right?
Amrapali already awarded. Amrapali, there is no Amrapali.
Which projects you are targeting to be awarded? I mean, because recently, we have received ₹60,000 crore. Which all projects we are targeting to be awarded in the first half?
Redevelopment projects, 7GPRA, and MAHAPREIT, and J&K also. Some work order from J&K as well as Goa government. Goa State Government.
Okay. And that will be in phases, right?
Yes, in phases, of course.
Okay. And in real estate segment, how we account revenue and profitability? Is it on percentage completion basis, or it is delivery-based recognition?
Real estate is a delivery-based, but in EPC, it is a single completion-based.
Sorry. No, I'm talking about real estate specifically. So because we have a.
Uncompletion.
Uncompletion.
Uncompletion.
completion, and risk and reward is transfer.
What is the kind of margin, EBITDA margin, we are looking on these real estate projects? Because as of now, it is minuscule.
In real estate project, we are expecting when we fully furnishing our real estate, then 25% margin will be there, EBITDA margin. I'm talking about.
25%.
This time, you are right in saying minuscule because the segment margin contains the one-time hit of INR 95 crore. Because that entire structural item is regarding the real estate project only.
Okay. Okay. And what is the arrangement in this Supertech project, if you can, in terms of our PMC consultancy fee and all? So can you elaborate more on that?
It is Supertech only, PMC project only. Here NBCC will act as a PMC. We are getting 8% PMC.
8%.
And 1% marketing.
Okay. Thank you. That is all from my side. All right.
Thank you. Thank you.
Thank you. The next question is from the line of Venkatesh from LogicTree Consultants . Please proceed.
Yeah. Good morning, sir. I have two questions, sir. One is, sir, we witnessed a kind of a renewed energy and a lot of vigor in NBCC's management and a lot of operations. Congratulations on that, sir. My question is, especially after this new government in Delhi has come in and new action in the Urban Ministry, we see a lot of things are happening. And NBCC is kind of being chosen as a canalizing agency for lots of infra and prop development work, especially associated with state governments and PSUs. So would it be fair to assume that at a broad level, as a vision, NBCC is the kind of company that we can see as the anchor company which the government will have first preference to for many of the flagship projects across the country? That's my first question, number one.
Number two, we have been quite optimistic, sir. Lots of orders flowing in, etc. So if we take a three to five-year view, sir, the estimates in terms of order book execution targets, is this like a base case scenario that you're projecting, or in an optimistic scenario, can things be better? This is just for factoring in our sensitivity calculations, sir. Two questions.
Definitely. We are already working with various state government. Already so many MOUs have entered with J&K government, Goa government, Kerala Housing Board. Now discussions are going on with Delhi government also. In Delhi, certain redevelopment works like DTC, Delhi Transport Corporation is having huge land parcel. That redevelopment work, already we got an MOU. So additionally, we are going to get some more work. Some judges' bungalows have to be reconstructed. That discussion is going on. Of course, we are talking with Yamuna River Bank. So that is also under discussion. Regarding your question, next question, next three years. Next three years, our top line will be around INR 25,000 crores, and bottom line will be around INR 2,000 crores. Next five, and order book will be around INR 1.5 lakh-INR 2 lakh crores. This will be next three years' target.
So that's a base case, sir. At least a minimum case. That's what I'm asking you.
Minimum. Conservative basis.
Right. And follow-up question on the NBCC being a chief canalizing agency for the government. Is this part of a broad vision agreed between the company and the ministry at the highest level, stating that we want to take NBCC to the next level? Is that part of the MOU?
Yes. Of course. Of course.
Okay. Okay. Great, sir. Thanks. I'll come back on the queue. Thanks. Yeah.
We are the obvious partner of the Government of India because we are doing the redevelopment using our self-sustained model.
Owners are those who are not investing any money. Rather, they are getting good return. Suppose they have X number of flats, they are going to get two times of X minimum. In terms of area, three times X. Without incurring any money. This is the beauty of the redevelopment projects.
Okay, sir. So one more thing, which is you also mentioned about Kerala, Andaman, a lot of other Telangana, etc. So NBCC being a central government organization, it seems like regardless of the state governments, in Kerala, it's Communist or Congress. In Telangana, it's regional parties. So regardless of state governments, NBCC seems to be kind of a preferred partner for a lot of state governments. Is my understanding right?
Yes. Yes. Yes. Because we have one USP that is redevelopment. Redevelopment, NBCC is only doing the PSUs. Whereas even CPSE for Delhi redevelopment, 7GPRA colony also, we are generating money to CPSE. So this is the specialty or USP of NBCC. That's why wherever state government, they don't have financial in redevelopment, they need not to infuse any finance. Just initially, some seed money is required, 10%-20%. Once the project is takeoff, means then we can get the money by selling the FAR or built-up area.
Okay. All right, sir. So second, in terms of real estate and PMC, we do get some constant streams of income. Apart from this, do you also get when you develop projects like Amrapali or take up special projects, is there a piece of real estate that is to be sold? Are you looking forward to any lump sum revenues over the next two years, three years? Anything? Sale of property or? So apart from regular course of income.
Yes. Of course. We recently purchased the World Trade Center, three floors, so we are going to lease out that property, so there is fixed income will come every year, and like that, we are planning in the coming year also.
Completed built-up space in Bhubaneswar, that will be sold out. So there we can lump sum transact in three months.
So we are not able to hear you, sir.
In Bhubaneswar, we have a built-up space which is already completed. OC has been obtained. That chunk of built-up space will be sold out within three, four months. From there, you can get lump sum money.
All right.
₹2,000 crore.
Okay. All right. Thank you, sir. I'll join the queue. Thanks.
Thank you.
Thank you. The next question is from the line of Nupur from Niriti Investments. Please proceed.
Yeah. Hello. Am I audible?
Yes. Yes. Yes.
Yes. Yes, sir. I wanted to ask regarding the Amrapali project. So according to figures in my hand, I guess we got around 38,000 units. And out of it, we have completed approximately 24,000-25,000 units. And we have sold around 7,000-8,000 units. So what is the timeline that we can expect for the remaining units to be sold and expected revenue to be generated going ahead?
The rest of the revenue will be the 8,000 units. Out of 8,600 units already sold in the open e-auction. So another 2,000-2,500 units have to be sold. That will be sold in the first and second quarter, hopefully by September end. Regarding completion, phase one, already almost we have completed all the projects. By July end, we will going to complete all the projects except one other Awas Yojana. That will be going completed by March, next year, March, 26 March.
Okay. And the additional 7,000 units that we had to construct, what is the schedule?
That will be two to three years. This is the phase two projects. Within three years, we will going to complete.
Sir, next thing I wanted to understand that the margin that we are targeting of a bottom line of around 10,000 in the coming two to three years. So how do we get there? What would be the target for next year, 2026 specifically?
Next year, around INR 750-800 crores bottom line. That is PAT.
Okay.
2026, 2027, around INR 1,200 crores. By 2027, 2028, it will be around INR 2,000 crores.
Okay. Okay. Thank you so much.
Thank you. Thank you.
Thank you. The next question is from the line of Pankaj Kumar from Kotak Securities. Please proceed.
Yeah. Thanks for taking my question, sir. The question is on the award that we are targeting for FY26. So you said in H1, we are looking at some 15,000 crore of projects. And last year, we did roughly 23,000 crores of total award. So what is the full year target for FY26 that we are looking at?
Award?
Yeah. Projects that you are targeting to award in FY26?
Around INR 18,000-INR 20,000 crores.
18 to 20,000. And which all projects will be there in that?
That is redevelopment of the 7GPRA colony, state government of Goa, redevelopment of Goa government, and MAHAPREIT. And of course, J&K and Telangana government, Bihar Housing Board projects.
This is you saying on standalone or consolidated?
Standalone only, I'm talking. Consolidated level, there is other AIIMS Darbhanga will also be there from HSCC, and in HSCL, some hospitals of Mumbai and all. I'm talking about only standalone regarding award.
And in terms of guidance for the standalone, what we are looking at, INR 15,000 crore. That number you have guided for consolidated, I believe.
Yes.
Revenue. So, what is the standalone revenue guidance that you're looking?
Around INR 11,000 crores. INR 11,000 crores in standalone.
Sir, our question is on the competition. Of course, we have seen very strong order inflows in this year, roughly INR 60,000 crores. Next year also, you're looking at INR 20,000-25,000 crores. So how is the competition in these orders? All these orders we have got on nomination basis or we have competed against other government departments?
Of course, in PMC project, we are getting on competition. Even redevelopment, some projects we are getting on nomination. Some projects on competition, of course.
Who are the other agencies we are competing?
Other IRCON, EPIL, WAPCOS, Bridge and Roof, NPCC, EPIL, MECON.
And so next question is on the real estate. So what is the total sales, pre-sales that we have done in FY25 and what we are targeting for FY26? This is my last question.
329 crores currently. This year we have sold it out. Next year also, approximately around INR 300 crores will be there. We are targeting around 300.
What is the total value of these projects that we are currently executing?
Real estate?
Yeah.
Real estate, you are talking about the execution of order out of real estate, no?
Yeah. Totally. Yeah. Real estate business.
Sir, in fact, on account of real estate, we don't treat that in our order book. Our order book, what we talk about, 102,000 CR is only consists of PMC and EPC. Real estate, we don't consider because it is our own work. As far as total value in books or accounts is concerned, we are having an inventory of 973 CR at net realizable value, I'm talking about. Out of which, 84 or 685 is approximately land value. Rest is the completed project under construction project.
What is the margin that we are looking at in these real estate projects?
Margin at present, if you see, there is a minimal margin because of the exceptional item. But down the line, we're expecting 25% plus EBITDA margin in real estate.
Which are the locations we are looking at? This is my last question.
It is across India.
Bhuleshwar, Lucknow, India.
Jaipur, Noida, Ahmedabad, Meerut, Patna, Coimbatore, across India.
Okay. Thank you.
Thank you. We take the next question from the line of Dr. Akshay Patil. From NBCC, please proceed.
NBCC joined. Congratulations to the management on setup.
Thank you.
My question is, as you are predicting the almost 2,000 of bottom line for the next three years, so what will be the approximate for the next year financial?
Next year, INR 750-INR 800 crore.
We are clowning this time.
Madam, INR 750-800 crore next year. PAT. That is PAT.
So that for the next coming two years, you are going to double it, right?
Yes. Yes. Because we are planning our real estate project of Ghitorni and the 37D, wherein we are going to get huge profit margin.
Coming to, as Delhi and Mumbai being the largest redevelopment markets, so what are your plans for the Mumbai redevelopment market to tap into the opportunities from the Mumbai redevelopment?
In Mumbai, recently, we had entered an MOU with MAHAPREIT, wherein we are going to do the redevelopment project of Thane and some Mukhyamantri Awas Yojana and some redevelopment works. So that is valuing of around INR 25,000 crores. Still, more some state governments also having some land parcel. Even private entities, societies having so many flats on distressed conditions, and they are underutilized FAR. So that also we are focusing, and we are targeting to get many more projects like this in Bombay.
Okay. Yes. Good to hear from you. That's all from my side. Thank you very much.
Thank you. Thank you.
Thank you. The next question is a follow-up question from the line of Sumit Rohra from SmartSync Services. Please proceed.
Yeah. Hi, sir. Thanks once again for the opportunity. Sir, I was just calculating. You have reported a profit after tax on a consolidated basis of INR 557 crores. Now, if I write back the INR 95 crores, which is a one-time and non-recurring, you have actually reported a profit of about INR 650 crores odd, which is about 5.4% PAT margin. Now, sir, assuming that we have a fixed cost model and operating leverage does kick in for us, so if your revenue is going to grow from INR 12,000 crores to, say, about INR 16,000 crores, can we expect that the PAT margin can also move up from about 5.4% higher towards the 6% mark, sir?
Whatever I am saying, 750 to 800, if it is a conservative figure, is definitely you are rightly saying it may increase. It may increase. We are taking a conservative figure.
Sumit, absolute margin will definitely increase. As you rightly pointed out, 557 is there. If we add back 95, it is more than that. You are correct in analyzing our results. But as far as absolute margin is concerned, when we go beyond 12,000 and 15,000 is the target for coming year, definitely absolute margin is going to increase. But as well as percentage margin is concerned, that may remain in the vicinity or that may also increase.
Got it, sir. Got it. Got it. And sir, but just one thing. I mean, this is just my observation that with the order book as strong as it is today of about INR 120,000 crores odd, don't you think that our revenue guidance for current year seems to be a little conservative, keeping the order book which you have in mind?
Definitely. Because in real estate and the redevelopment projects, it will take some time to arrange the fund also and getting the statutory approvals. So approvals also, it will take time. Some EC clearance, it requires at least minimum three to four months. So that's why we are taking conservative figures. But next year onwards, definitely it will increase like anything.
Sure, sir. Sure. I get that. Thank you so much, sir, and wish you all the best, sir.
Thank you.
Thank you.
Thank you. The next question is from the line of Aman Vij from Astute Investment Management. Please proceed.
Yeah. Good morning, sir. My first question is, you talked about Netaji Nagar having 1,900 crore works in pipeline and Sarojini Nagar remaining 2,700 crores. So do you expect is there a chance some of it will come in FY26 or most of it will come in FY27?
No, no. We are going to award. It's definitely in this year, current year, we are going to award these two works.
Okay. So both Netaji Nagar and Sarojini Nagar?
We are expecting some revenue in the last quarter, hopefully in the last quarter.
Okay. So even if you assume, say, one, two quarters delay, so at least by second half of next year, most of this will be done, Netaji Nagar and Sarojini Nagar works.
Yes. Yes. Yes. Yes. Definitely.
Sure, sir. Second question is on the real estate side. So you talked about Ghitorni coming up in, say, next year, FY27. How do you see that scaling in FY27, 28? Because that is like a INR 5,000 crore opportunity for us. So what kind of contribution do you expect in 27, 28, and maybe 29?
In fact, as I told earlier, also in this conference, we are basically whatever guidance we are providing our earning calls in last, we are maintaining the same guidance, and I think in last guidance, we have projected a net value of 8,000 crore plus, and profit is approximately 3,000 something odd crore, so we are expecting that only this time also.
So at that point, I understand. I have gone through that call. But I was talking about a little bit on timeline. So how much do you expect to happen in 2027?
Aggressive timeline is 2028-2029 because it is a real estate one, and real estate one, turnover will be booked on the handing over the risk and reward to the buyer, so because we are going to start in 2026 this financial year. Maybe 2027-2028 will get this. Revenue will definitely come only once we handed over the project, so it may be 2028-2029 as the aggressive one.
Okay. Okay. That helps. But in terms of execution, you are quite sure?
We are going to start.
We are going to start.
We are going to start. This year itself.
This year itself.
Because revenue recognition criteria for real estate is not the percentage completion method. It is the.
Yeah. That is okay. Yeah. That I understand, sir. But in terms of cash flows and order.
Yes. It will come. Yes. Yes.
Okay. Yes. Next question is, sir, on order inflow. So FY25 was like a surprisingly good year for us. In the start, we had guided much lesser number, and it turned out to be one of the best years for us. What needs to happen in 26 and 27 for us to repeat this kind of order inflow like INR 40,000 crore, INR 50,000 crore of order inflow? I understand you are guiding INR 20,000-INR 25,000 crore. But what things if it happens like?
It will increase. Definitely, it will increase. We are discussing with our Delhi government, with our ministry only. We have to do some redevelopment project of another 15-16 colonies in Delhi itself. We have total 105 colonies. So that is also under discussion. Once we get, means we have a bulk order. So currently, I cannot disclose you any of we have good order book in line.
Sure. And.
Due to 15-16 colonies, each will be like the last colony, which is like ₹3-5,000 crore. Is this estimation correct?
Currently, I will not disclose to you any of. I'll come back to it next further investment because it is actually competitors are there. And of course, in redevelopment, there is no competitor. But so far, we could not get the order. Once we will get, it will be big. Just like our 7GPRA, that colonies are having area more than 500 acres, 300 acres, R.K. Puram and all, Lodhi Colony. So anyway, I'll come back to you.
And sorry, just the final thing. Whenever it happens, do we expect this to happen in H1 or H2 mostly? Any further update on this?
Hopefully, H1.
Okay. These were my questions. Thank you.
Thank you.
Thank you. The next question is a follow-up question from the line of Venkatesh from LogicTree Investment Advisories. Please proceed.
Yeah. So two questions. One is, you've guided for FY26. So in your earlier con calls, you had guided that FY27 could be even better year, probably ranging from INR 1,500, probably INR 2,000 crore because I think you will get some other extraordinary income in that particular, I think, real estate recognition or something. Is my understanding right, sir? FY27 could be a very significant year in terms of profits?
Yes. Yes. Yes. Definitely.
Okay, sir. Great. First, second question is this Delhi redevelopment thing, whole thing, it's almost like it's a massive opportunity, right, sir? So if you're talking about 100, 105 colonies and you're focusing on the first 15 initially, this whole order book of 120,000 crore plus the order inflows plus future inflows, are you able to see a visibility for the next five to seven years in terms of order execution? Because once you hit 25,000 crores, would you say that you can maintain that run rate over a period of time?
Definitely. It will increase rather. Instead of maintaining, it will be increasing in every year. Once we have the order book, definitely we have to finish that order within three to four years. So definitely, it will be exponentially increase.
Okay, sir. That's good enough. Thank you very much. Yeah.
Venkatesh, just one correction. It is 2,000 crore what you are saying. It is FY28, not FY27.
Oh, okay. FY28. Okay, sir. I got it. I got it. Okay. Thank you. And this current order book of 120,000 plus whatever you will be getting in the next few months, is it okay to assume it will be a three to four-year order execution period?
Yes. Yes. Yes. Three to four years.
Three to four years. Okay, sir. Thank you.
Thank you.
Thank you. The next question is from the line of Yogesh from Real Value. Please proceed.
Hello.
Hello.
Yeah. Sir, congratulations. First of all, I think there's a major turnaround I see on the results on the NBCC to entire management team and all. So I had one query only because we are hearing so much about the defense which government is taking initiatives and things like that. So as a company, are we not focusing anything on those lines somewhere over there? Thank you.
Definitely. Defense also, we are discussing. They also need huge housing colony. So discussion is going on. Hopefully, in this year, we are going to get good news from defense. And of course, some PSUs of defense, that is HAL, BEL, they also wanted to give some civil work to NBCC. So we are all discussing with them. That is actually PMC projects. And redevelopment projects also, discussion is going on. Hopefully, we will get good news in this year from defense as well as railways also. Railways is having huge land parcel. So they wanted to monetize the land parcels. So discussion is going on. Once it will be completed, let you know.
Sir, one more question. You had also mentioned sometime back, I think I had read somewhere, that NBCC has got some projects abroad as well, I think Dubai and all. Is it there or I mean, any updates on that?
Yes. Yes. One good part is we already opened a company in Dubai. So we are going to start our real estate business at the earliest. So clearances all we got from necessary clearance from DIPAM and all. So we are going to start our real estate project at the earliest in this year only, current year.
Thank you, sir, and all the best.
Thank you. Thank you.
Thank you. The next question is from the line of Dixit Doshi from Whitestone Financial Advisories. Please proceed.
Yeah. Thanks for the opportunity again. Sir, one question. In our expenses line item, there is one expense of write-offs which is around INR 39 crore last year and went up to INR 276 crore. So what is this regarding?
Let me explain. You are talking about this 30.
H item.
This is 253 crore. 253 crore is the line item which is related to the write-off, and 76 crore is a negative item against the impairment losses.
Sorry.
There are two items.
Okay.
There are two items. Let me tell you. It is regarding the write-off of our trade receivables and reversal of the ECL provision created in the last year. So net, if you see, it is 253 minus 76. So it will come around INR 175 crore or INR 180 crore. And last year, it is at INR 12 crore or INR 13 crore.
Okay. So do you expect this to remain at this elevated level or next year onwards?
Let me again clarify because writing off and reversal of the provision, as far as NBCC is concerned, there is a very little impact on our books of accounts because as per our model, whatever amount we are writing off in the trade receivable, we are also getting adjusted against the unadjusted credit balance also. Because as per our model, trade payable is being paid off only once we receive our trade receivable. So whenever there is a write-off on account of trade receivable, there is an adjustment on account of write-back towards the trade payable also. If you analyze our result, there is approximately INR 277 crore of write-back is also there.
Okay. Okay. Understood. So net net, we are not losing any money, right?
Generally, not.
Okay. Okay. Understood. Thank you.
Thank you. The next question is from the line of Parvez Qazi from Nuvama Group. Please proceed.
Hi. Good morning. Congrats for a great set of numbers. So two questions from my side. What is the total seed money that we have increased in various projects that we are doing? And second, of the cash in our books, what is, let's say, belongs to client and what is our own cash? Thank you.
As far as cash is concerned in our book, it is approximately INR 400 crore, which is a free flow cash available to the NBCC after setting of the all commitment as of 31st March 2025. And your last question is regarding seed money. Seed money, approximately, we are having 657 plus 11. 657 plus 11, that comes to INR 668 crore in totality as of 31st March 2025.
Sure, sir. Thanks and all the best.
Thank you.
Thank you. The next question is from the line of Swaroop from NBCC. Please proceed.
You are not audible. Hello. Can you please ask your question?
[inaudible] A question and answer basically.
Thank you, Swaroop. The next question is from the line of Nupur from Niriti Investments. Please proceed.
Yes, sir. Just a follow-up question. Actually, I'm new to the company and I want to understand how the setup works for PMC projects. So as I see the Amrapali project, our project cost was 8,500 crore and we were entitled to an 8% fee towards PMC, which comes to approximately 650 crore. But as I see in the previous presentation, the contribution to the top line from Amrapali was 1,800 crore and this year it is something 1,000 crore. So how does this setup work? Does this include the revenue from sale of units also or only the fee?
In Amrapali, there are two rates we are getting the fees. One is sale part. On selling the part, we are getting 1% PMC. That selling part will be around INR 15,000 crore in the phase two. I'm talking about phase two. Regarding construction, around INR 10,000 crore. Whatever construction we are doing, we are getting 8%. So total, there will be 9%, but on sale, it will be more than 9% because sale company is INR 15,000 crore, construction part is INR 10,000 crore. So INR 10,000 crore we are getting 8% and selling part we are getting 1%.
Okay. So this setup is same for Supertech also?
It will be more than 9%. By averaging these two, it will be more than 9.1%, something like that.
Okay. All right. So it is similar for all the other PMC projects like Supertech?
Supertech also same. Construction part we are getting 8% and for marketing 1%.
Okay. So thanks.
Okay. Thank you. Thank you.
Thank you. And there are no further questions. I would now like to hand the conference over to the management for the closing comments. Thank you and over to you.
Thank you so much for the interest in NBCC. Just I want to highlight and summarize a few things before final closing. NBCC has secured historical amount of business in current financial year, highest ever in NBCC history. Successfully sold around 6,800 residential units at Amrapali phase two through open e-auction. Awarded INR 23,250 crores in full year financial year 2024-25 and more efforts are being made to expedite to award the works. NBCC has incorporated fully owned NBCC Overseas Real Estate LLC in Dubai mainland UAE for real estate business. NBCC order book has crossed 1 trillion mark and now standing at historical all-time high. NBCC has been engaging with multiple state governments and the time has come to translate these discussions into concrete agreements and executions.
According to performance rating of DPE released last week, NBCC ranked second among all CPSE and number one in construction and consultancy industry. These are the few highlights of our performance and we will keep doing extra efforts for taking NBCC into new heights. Once again, thank you everyone.
Thank you very much. For further inquiry or questions, please reach out to Mr. Balkishan Singla, Investor Relations, NBCC. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us and you may now disconnect your lines.
Thank you.