NBCC (India) Limited (BOM:534309)
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Q1 24/25

Aug 16, 2024

Operator

Ladies and gentlemen, good day, and welcome to NBCC (India) Limited Q1 FY25 earnings conference call, hosted by Elara Securities (India) Private 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 signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Ankita Shah from Elara Securities (India) Private Limited. Thank you, and over to you, ma'am.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Thank you, Manoj. Good afternoon, everyone. On behalf of Elara Securities Limited, I welcome you all to the Q1 FY 25 earnings conference call of NBCC Limited. We are pleased to host the management, which is represented by Mr. K.P. Mahadevaswamy, Chairman and Managing Director; Mr. Saleem Ahmad, Director, Projects; Dr. Suman Kumar, Director, Commercial; Ms. Reshma Dudhani, Senior Executive Director, Engineering; Mr. Hrishikesh Kumar, ED, Finance; and Mr. Pradeep Sharma, ED Business Development. Also we have Krishna, who is from the Investor Relations team. We will start with opening remarks and then follow it up with question and answer. Thank you, and over to you, Chairman, sir.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Good afternoon to everyone. On behalf of my NBCC team, I extend a warm welcome to you and appreciate your presence in today's earnings call for first quarter ended 5th June, 2024. In recent quarters, NBCC has demonstrated significant growth in both revenue and profitability. For our consolidated operation and execution, we have achieved a total income of INR 2,198 crore, reflecting an 11% year-on-year increase. Additionally, our profit after tax stands at INR 107 crore, making 38% year-on-year growth. Major business update. New business secured. NBCC has secured substantial business in the first quarter, valued around INR 17,820 crore on standalone basis and INR 19,750 crore on consolidated basis. Following are the major business secured: Development of sector township spread over 406 acres at Srinagar, Jammu and Kashmir, valuing INR 15,000 crore.

Development of two land parcels in Jhansi, that is INR 700 crore. Land parcel development for Kochi Metro Rail Limited, that is KMRL, at Kochi, INR 700 crore. Amrapali Financial City, Greater Noida, this is INR 250 crore order. HSCC, our subsidiary company, HSCC, procurement of biomedical equipment and hospital furniture for Pandit Deen Dayal Upadhyaya University of Health Sciences, Kutail, Karnal, INR 528 crore. New government medical college of 100-student capacity, 430-bedded hospital at Buldhana, INR 411 crore. Mostly a subsidiary of HSCL. Construction of new medical college, 100-student capacity, 430-bedded hospital, Parbhani, that is in Maharashtra, INR 404 crore. Update in Amrapali project. Amrapali project has contributed INR 370 crore in top line.

Out of 38,000 housing units, so far we have completed around 21,000 units, and we are committed to provide remaining houses on or before 31 March 2025. Work on phase two project is going on, and we will going to award the work at the earliest. Update in redevelopment projects. Sarojini Nagar project is on finishing stage, and we have already started handed over of the projects. Netaji Nagar, the first phase, phase of the project, valued about INR 1,450 crore, is currently underway, and 70% of the work almost completed. Additionally, two more tenders, worth of INR 1,700 crore, are in pipeline for appointment of contractor. Sarojini Nagar. This is a large project and works more than 10 phases are going on with the project value of INR 6,900 crore. Top priorities.

Handover of phase two quarters in Sarojini Nagar planned to be handed over 1,738 quarters, that is 19 towers, by end of September 2024. Handover of another 10,000 plots in Amrapali projects. Handing over of GPOA, that is Netaji Nagar project, 7.3 lakh sq ft GPOA, that is block number 3, is has been handed over to CPWD for internal finishing work. Major opportunity and focus areas NBCC for upcoming months. Opportunity in housing sector. Opportunity in the sectors, in the sectors are very huge, and we are in talks with various state governments, agencies, including housing for all, that is Pradhan Mantri Awas Yojana. Feasibility study and DPR preparation for low-cost housing project is underway for many government departments. Land monetization.

Government agencies, including PSUs, have lot of land parcels across India, which are not generating any revenue to the owners. NBCC has been accessing these opportunities and started feasibility of few land parcels across Pan India for these large opportunities similar to BHEL works. After successful journey of redevelopment business model, NBCC is also eyeing some large size projects in the segment upcoming months, specifically government colonies for redevelopment. In case of Amrapali project experience and expertise, NBCC is examining feasibility of few more strategically located projects, one in Gurgaon and one in Noida, that is Supertech and other private agencies. Overseas business. Expansion of new opportunities in Fiji, Morocco, Philippines, Dubai, and Kuwait. Diversification. Acquisition of underperforming public sector units with significant land assets. Now, thanking you, the forum is open for question answer.

Operator

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 touchtone 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'll wait for a moment while the question queue assembles. A reminder, you may press star and one to ask questions. We have our first question from the line of Sumeet Rohra from Smarts un Capital. Please go ahead.

Sumeet Rohra
Founder and Fund Manager/Director, Smartsun Capital Pte. Ltd.

Thank you. Hi, sir. Very good morning to you-

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Hi.

Sumeet Rohra
Founder and Fund Manager/Director, Smartsun Capital Pte. Ltd.

And the entire team at NBCC. Firstly, sir, I mean, many, many congratulations on posting a very good set of results in quarter one. And now, sir, you know, if you can just take us through, you know, what is our current order book today? And secondly, you know, you just mentioned that, you know, you are looking at many various business opportunities. So how do you basically see order inflow over the next maybe six months till this financial year? My second question, sir, is now that, you know, you've got such a robust order book, you know, and we have very strong targets of about INR 25,000 crore revenue. So sir, this year, I mean, what kind of revenue growth are we looking at?

Secondly, if you can also help understand a little bit on, you know, how do you think EBITDA margins, et cetera, will shape up along with PAT, because then we see a flow through from EBITDA to PAT directly. If you can just, you know, highlight a bit on these two, then I'll come back for more, sir.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

So the first question you asked, the order book. So we have around 70,000 crore order book in our standalone only, and in consolidated level, 81,000 crore order book we have. And the current year target is around INR 10,000 crore turnover at the standalone and INR 13,000 crore at the consolidated level.

Sumeet Rohra
Founder and Fund Manager/Director, Smartsun Capital Pte. Ltd.

Okay. And sir, I mean, on margins, because, you know, in Q4, we saw, you know, I mean, a very sharp uptick in margins in Q4. And Q1, though, generally, you know, is a subdued quarter always for NBCC, but this time, Q1 also was quite good. So if you can basically, you know, tell us a little bit on margins, then how do you basically see this shaping up for the full year?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

5.5%-6%, around 6% profit margin.

Sumeet Rohra
Founder and Fund Manager/Director, Smartsun Capital Pte. Ltd.

Okay. And sir, I mean, on the potential business opportunities which you just mentioned, you know, I mean, you know, land monetization of other PSUs, plus, you know, stress projects of Supertech. So, sir, what, I mean, in your, in, in your eyes or in your opinion, is the potential, you know, we are looking at in terms of getting further orders? Because currently, you said we are INR 81,000 crore. So can we end the year with about INR 100,000 crore?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Definitely, definitely. By the year-end, I think we are going to cross INR 1 lakh order book. This is our target. We have some orders in pipeline that will be going to mature by... in the next coming quarters. So by the end of the year, I think we are going to reach INR 1 lakh at the consolidated level.

Sumeet Rohra
Founder and Fund Manager/Director, Smartsun Capital Pte. Ltd.

Okay. Sir, I mean, so I mean, if I heard correctly, you said that you're looking at about INR 13,000 crore consolidated revenue for current year, which is, I mean, a sharp 25% growth. So do you expect this, you know, this growth in revenue to continue for the next several years, seeing the robust order book we have?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Definitely. Definitely. For getting any project we want to start, means we need some statutory approvals, for which it will take at least 6-8 months. So once we got the statutory approvals and all, then the order book can be converted into execution.

Sumeet Rohra
Founder and Fund Manager/Director, Smartsun Capital Pte. Ltd.

Sure. Thank you so much, sir. I'll come back.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Thank you. Thank you.

Operator

Thank you. Before we move on to the next question, a reminder to all participants, you may press Star and one on your touchtone phone to ask questions. We have our next question from the line of Akshay Patil from NBCC. Please go ahead.

Akshay Patil Limited)
Company Representative, NBCC

Hello?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Hello. Uh-

Akshay Patil Limited)
Company Representative, NBCC

Hello. Good afternoon, sir. Good afternoon. Good afternoon.

Operator

Yes, sir, please go ahead with the questions.

Akshay Patil Limited)
Company Representative, NBCC

Yeah. I want to know, NBCC has recently increased the authorized share capital, so any plans for further fundraising or what was its purpose?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Not for fundraising. So this question will be answered in the next, I think next meet.

Akshay Patil Limited)
Company Representative, NBCC

... Okay, okay. And, what, okay, okay. So, my next question is, NBCC was planning to set up a NBFC within its ambit to fund its internal

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Not presently.

Akshay Patil Limited)
Company Representative, NBCC

Not presently. Okay. So my next question is, revised estimates for the top line and bottom line for the next fiscal year? Not this fiscal, next fiscal year.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Next fiscal year? Okay.

Akshay Patil Limited)
Company Representative, NBCC

Yeah, yeah. Next fiscal year.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Not this year, coming year?

Akshay Patil Limited)
Company Representative, NBCC

Yeah, coming year.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Current year, you are talking?

Akshay Patil Limited)
Company Representative, NBCC

No, next year. Growth, I'm asking about the growth. How much can it increase, top line can increase?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Around 25%-30% growth we are expecting in top line.

Akshay Patil Limited)
Company Representative, NBCC

Next. Okay, okay. So, in this budget, INR 1,000,000 crore has been allocated for the urban infrastructure development. So how much percentage of the order can, is NBCC expecting, so that it can secure it?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Definitely. Presently, we are not getting any order from that local housing projects, but certainly discussions is going on with some state governments. We are going to get the order in this year, current year.

Akshay Patil Limited)
Company Representative, NBCC

Okay.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Around INR 3 crore.

Akshay Patil Limited)
Company Representative, NBCC

Thank you, sir.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Thank you. Thank you. Thank you.

Operator

Thank you. Before we move on to the next question, a reminder to all participants, you may press star and one to ask questions. The next question is from the line of Vasudev from Nuvama Institutional Equities. Please go ahead.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Yeah, thank you for the opportunity, sir. Sir, I had some few queries. In the Q1, what is the total value of works that we have awarded, and how much are you planning for the full year in this year?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Total awarded at the consolidated level is INR 1,700 crore in the Q1.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Okay, and how much-

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

,400 something.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Okay, and, how much are we planning for the full year?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Full year around INR 12,000 crores, INR 12,000-INR 13,000 crores.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Okay, sir. INR 12,000-13,000 crore. Sir, out of this, INR 81,000 crore of order book, how much is currently ongoing work?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Currently, around INR 21,000 crore is on running projects.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Okay, INR 21,000 crore. Sure, sir. And sir, you said only EBITDA margins, you are targeting 5.5%-6%. So what is, are we, that we're planning for the PAT margin?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

PAT margin around 4 and up to 5. Around 7%. So the PAT margin will be around 6%-7%.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Okay, 6%-7%. Okay. Sure, sir. Sir, on the Amrapali project, so you know, if you can give that, what is the total value that you've sold here till date, and what is the total execution over here in this project?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

The sold value is around INR 3,600 crore, and so far around INR 6,000 crore we have executed, another INR 1,800 crore-INR 2,000 crore only balance. That we are going to complete by next March 2025. We are going to complete all the units. So far, we have completed around 20,000, 21,000 units. The rest, 17,000 units, total 38,000 we have to complete. So 17,000, out of 17,000 is balance. Out of 17,000, around 15,000 units we are going to complete by this year, December itself. Another 2,000 units, next March 2025.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Okay. Okay, sure, sir. Sir, on the Netaji Nagar project, can you please repeat, now I missed your opening remarks over here. What is the value that is currently ongoing, and, you know, how much have we completed the execution here?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

INR 1,400 crore project, that is GPOA, is in progress. Out of which, 1, 1 block 1, 2, 3. Block 3 has completed and handed over to Estates for internal finishing work. So, so far, we around 70% of work completed. Balance, we are going to complete by November, by November, December.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Okay, sir. And sir, our Nauroji Nagar is now fully sold up, right?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yes, fully sold out. Only some six floors has to be sold, but I think in, by this end, month of end, we are going to sell complete inventory. There is lot of competition for purchasing the flats, the floors, office space in, Nauroji Nagar.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Okay. Sir, on the Sarojini Nagar, what is the sales that we are planning for this year?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Saleem. Saleem, only one, Sarojini Nagar, only one, Buldhana.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Downtown.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Downtown. Downtown bulk sale that has been completed. We have sold out that bulk sale. Successfully sold that Sarojini Nagar.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

How much are you planning for balance, in this year?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Balance is some office space. Once again, we have the commercial space has to be built. So we are waiting for the cabinet approval. As soon as we get the cabinet approval, we're going to start the construction of the commercial space.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Okay. So then over here, until last quarter, we had already sold INR 500 crore-INR 600 crore, so that is the only sales until now in this project, right?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Where? In Nauroji Nagar?

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Sarojini Nagar. Sarojini Nagar.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Sarojini Nagar, INR 1,300 crore unit, we have sell it now. Recently, the downtown sale has been taken place.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Okay. Then in our balance, we're not expecting any further sales in this project in FY 25?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

There is no sale in Sarojini Nagar so far, as of now.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

... Okay, and lastly, sir, what-

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Sir, the inventory already sold out.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Okay, okay. So sir, what is the total value that we've sold over here?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

In Sarojini Nagar, INR 1,300 crore.

Speaker 8

Okay.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

On Sarojini Nagar, it's INR 12,500 crore already sold. So one more auction will going to happen in this month only, wherein we can fetch another INR 800-INR 900 crore. That is the last auction.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

In the Nauroji Nagar?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

In the Nauroji Nagar.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Okay, okay. Lastly, sir, what is the total real estate that we've sold in this quarter?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Real estate. INR 663 crores. INR 63 crores.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

INR 63 crore. What is our target for the full year?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Around INR 600 crore we are targeting.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Okay. Sure, sir. That's it from my side. I'll come back in the queue for more questions.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Thank you. Thank you.

Vasudev Ganatra
Senior Associate, Nuvama Institutional Equities

Thank you.

Operator

Thank you. A reminder to all participants, you may press star and one to ask questions. You may press star and one to ask questions. The next question is from the line of Ankita Shah from Elara Securities Private Limited. Please go ahead.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Yeah. Sir, could you help us with the order book breakup between project management consultancy orders and redevelopment orders?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

PMC, you want the PMC and redevelopment. Around 46% on PMC, 54% is on redevelopment. That is out of INR 81,000 crore, 46% in PMC and 54% in redevelopment model. EPC is very small margin, some 6-7%.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Okay, okay. Sir, in terms of inflows, how much inflows are we targeting for this year, and from which areas?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Another INR 20,000 crore. So far, around INR 20,000 crore we have secured. Another INR 20,000 crore we are expecting in this current year.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Okay, okay. And, where is in this opportunity come from? You've mentioned, you know, Housing for All, Land Monetization, over-

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Some land monetization.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

If you can quantify on each of these.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

From land monetization, around INR 10,000 crore from the state government, and some PSU land monetization, INR 5,000 crore, and some, the government Pradhan Mantri Awas Yojana, so we are expecting INR 5,000 crore.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Okay, okay. And the overall opportunity pipeline across all this would be, like over the next 4-5 years, how big this opportunity can be?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Around next 4-5 years, we can go up to INR 200,000 crore, order book will be around INR 200,000 crore. Current year, we are targeting for INR 100,000 crore. So next 4-5 years, I think it will double, almost double.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

So INR 1 lakh is your inflows, or the order book number?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Our order book, our order book. Currently, we have INR 81,000 at the consolidated level. Another INR 20,000 we add to, it will be INR 100,000 during this year.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Correct, correct, correct. Okay, okay. And what about, sir, any opportunities in overseas market as well?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yes, yes. We are, we're going to get some new work order from Fiji, Morocco, and Kuwait, Dubai. Dubai also, we are looking for our real estate as well as some PMC projects in Dubai and Kuwait.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Okay, okay. How much would be our build pipeline as of now?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Pipeline around 1 lakh. In Dubai. Overseas.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

No, overall, overall domestic and overseas bid pipeline.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

I already sold INR 100,000 crore, around INR 100,000 crore. It will go overseas. It will go to overseas, overseas market.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Got it. Okay, sir. Thank you.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Thank you.

Operator

Thank you. We have our next question from the line of Sumeet Rohra from Smart Sun Capital. Please go ahead.

Sumeet Rohra
Founder and Fund Manager/Director, Smartsun Capital Pte. Ltd.

Yeah. Hi, sir. I mean, you know, I just heard your comment just now, you know, on the opportunity which you said over the next 3-4 years. So, sir, if I understand correctly, you're saying that, I mean, currently by the end of this year, our order book should be close to INR 100,000 crore, and, after executing of INR 13,000 crore. So if you say that, you know, our order book should be about INR 200,000 crore after four years, which basically means that that would be after execution, right? So because, I mean, since we are looking at a run rate of about 25%, so my understanding is that this year you'll do 13,000, then the next year you could do about 17,000-18,000, then on the third year, you could be about 23,000-24,000.

So you are basically saying that after executing and growing 25%, your order inflow, I mean, your order book after 3 to 4 years should be INR 200,000 crore. Is that correct, sir?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Because we are getting around INR 40,000 crore work order every year. So after deducting INR 25,000 crore, the balance order book will be around INR 200,000 crore after 4-5 years.

Sumeet Rohra
Founder and Fund Manager/Director, Smartsun Capital Pte. Ltd.

Got it, sir. Got it. Got it. I, I wish you all the best, sir. Good luck for the-

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Thank you. Thank you. Thank you, Sumeet.

Operator

Thank you. A reminder to all participants, you may press star and one to ask question. The next question is from the line of Amit Kumar, a shareholder. Please go ahead.

Speaker 8

Hello, yeah. Firstly, congratulations for the good result. And my question—there is two questions. First is, as you previously guidance about INR 25,000 crore top line and INR 2,000 crore bottom line in 2027, 2028, if I am correct?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yes, sir.

Speaker 8

So, yeah. So with this new development, like you are getting good orders, and you know, good execution. So are you stick on this number, or you are a bit adjusting or, I mean, you are going to raise the bar?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Definitely, it will rise. This is the minimum. Whatever we are committing, this is minimum. Definitely, it will vary another 5%-10%, because we got this year alone, INR 20,000 crore. In the first quarter only, we got the order, and we are expecting another INR 20,000 crore in the next coming year quarter. So INR 40,000 crore only we got against INR 20,000 crore. So definitely it will increase.

Speaker 8

You said, because you said that you will raise, like, top line by 25% every year. So in that formula, it will be around INR 27,000 crore-INR 28,000 crore, if I am correct, the top line?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yes, sir. Another 5%-10% definitely will increase.

Speaker 8

Okay. The bottom line, you mentioned about INR 2,000 crore in your previous session, I mean, last year. INR 2,000 crore, it will also increase?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yes, definitely, definitely. It will also definitely increase, because we have our, you know, real estate also, wherein we are getting profit of around 25%-30%. So that it will also added to our kitty. Definitely.

Speaker 8

The bottom line is, I mean, this last year, last financial year, the top line was, like, around INR 10,000, and bottom was around INR 500 something. I mean 5%, the margin.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Mm-hmm. Mm-hmm.

Speaker 8

The-

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yes.

Speaker 8

So, but as, as you are saying that in 2027, 2028, if you are going to book top line around INR 28, and your bottom line is around, let's say INR 2,300, so it means like 8%-9% bottom line? 8%.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yes, definitely, because our breakeven is around INR 5,500 crore, our breakeven point, that overhead will match. Afterwards, anything we will earn, the profit will directly increase, so that is the reason.

Speaker 8

So, like, so this year also, your margin, like, bottom line, I mean, next financial year, 2025, 2024, 2025, your margin would be like, if I am right, around more than 6%?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

More than 6%.

Speaker 8

More than 6%. Okay, and any new, like, you are going to start your own projects, in real estate more or just you are stick with the PMC?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

No, no, no. We are going to start. We have three land parcel at Jaipur, one land parcel at Coimbatore, so that we are going to start.

Speaker 8

But that's only-

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

One more project at Gurgaon. Yeah. So that we will be-

Speaker 8

In that segment, in that segment, your profit will be around 20-25% margin, right?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yes. Yes.

Speaker 8

Yeah. But again, the question is, I mean, your major part is PMC, and where there is just 8% your, I mean, the EBITDA, 8% margin. So how you will achieve this 8%, bottom line in next course of, you know, two year?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

As I told you, around INR 200-250 crore only, our overheads. Beyond 250 crores, so we are going to get profit. It's our overhead. So that is the thing, and another thing, in real estate, we are getting good margin.

Speaker 8

Yeah, but that is very limited part, no? Your real estate will not more than around maybe 5%-10% in your book.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

I fully agree. In redevelopment projects, we are getting marketing fees also. One or two percent, marketing fees also we are going to get.

Speaker 8

Okay. So in that, you will, you will achieve 8%, bottom.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yes.

Speaker 8

This new Jammu and Kashmir project, what is your fees? Is the same 8%?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Not yeah, including the marketing, around 7%-8%.

Speaker 8

7%-8%. So, this, all development opportunity. So you will, you will get more like these projects in coming years? Are you-

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yes, yes. Yes, yes. In the coming quarter, I think we are expecting one more state government to participate in th evelopment of the project. Not redevelopment, development of the project through self-sustainable.

Speaker 8

That kind of a scale or lesser?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Almost. It is equivalent to...

Speaker 8

So it means that in next 5- 6 year, your path is clear about 20 to 25 growth as top line and also in bottom line.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yes.

Speaker 8

Okay. That's, that's great. Thank you. Thanks a lot.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Thank you. Thank you.

Operator

Thank you. We have a follow-up question from the line of Ankita Shah from Elara Securities. Please go ahead.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Yeah, I wanted to check in these projects that you've got, are these projects on Nomination Basis or we have bidded for these projects and got it?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Redevelopment, of course, redevelopment projects we are getting on nomination basis, but certain PMC projects we are getting through competition. Even EPC contract also through competition.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

This recent Srinagar project that we got, is it?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

It's on nomination, nomination basis. Srinagar, Kerala, Kochi Metro, all the three we got through nominations. They got their approval from cabinet.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Okay. Okay, okay. And, we-

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Because redevelopment, only NBCC is doing redevelopment projects. Except NBCC, nobody is doing. Even CPWD, for 7 GPRA, we are generating money and giving to them. So this is the USP of NBCC, redevelopment.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

In this redevelopment project, which is nearly 50% of your order book, any cost escalations or delays would be a pass-through to the government?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

... Pardon me? Cost escalation. Whatever profit that, that will be given to, we are charging our PMC fee. The profit, of course, it will go into government only, state government only.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

No, if the project gets delayed and the overall project size only increases, then you get your fees on the escalated project cost or at the original project cost?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

No, no, actual cost, which project cost increase means we are going to get some increased cost.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

So you will get fees on the increased cost?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yes.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Okay. Okay, got it. And who are the other competitors for us in the other PMC orders?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

PMC orders, 3, 4 PSUs are there. One is IRCON, RITES, EPIL, MECON, WAPCOS-

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Okay.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Mecon.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Private companies don't bid for these orders? Okay.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Private, private people won't get this. Among PSU only, because we are doing government projects. Government projects usually appointed to either CPWD or state government bodies or PSUs. So among the three, it will going to compete it.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Okay. And in these, margins are decided by the government or...?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

No, you have to quote, you, you have to quote. Suppose if you are in the competition, means you have to quote the rate.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Okay.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

The nomination, of course, the government will decide. Usually it will be settled based on the quantum of the work and size of the work and location. It all depends on the factors for deciding the PMC fee.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Generally, how much is the PMC margin that we get in this?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Around 6%-8%.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

6%-8% is our margin, plus the subcontractor will also make margin as well.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

He will get around 10%-15%. The overheads usually kept in as per CPWD DSR.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Okay.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

The contractor profit and overheads will be around 15%. So that will be extra, not NBCC margin.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Okay. So total is 16%, 10% to the subcontractor and 16% for the, for NBCC.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Not 10%, 15%. As per the security guidelines, in this 15% he has to pay tax, GST. I mean, not GST, tax, overheads, overheads and labor pay, everything is included in the 15%.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Okay, got it. And over and above that, 6% for us?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

6, yes. Cost plus. Whatever cost plus.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Cost plus. Okay, cost plus.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

In Maldives, we are getting around 10%. We are getting 10%. Some work we are getting 8%-10%. In Amrapali, we are getting 8%. So-

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Okay.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

It depends on project to project, size of the project.

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Got it. Got it. Got it. Sure. And... Yeah.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Hello?

Ankita Shah
Vice President or Analyst, Elara Securities Limited

Yes, sir. Yes, sir. That's it from my side. Thank you.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Thank you.

Operator

Thank you. We have our next question from the line of Akshay Patil from NBCC. Please go ahead.

Akshay Patil Limited)
Company Representative, NBCC

Hello, sir.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Hello.

Akshay Patil Limited)
Company Representative, NBCC

Yeah. The recently secured INR 15,000 crore Srinagar project. So what is the timeline within which it should be executed?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

It is varying from... Actually, this, it will be in phase manner. The first project we are targeting 1-2 years, first phase. The rest of the project, maximum 5 years. We're going to develop that township, satellite township in phase manner.

Akshay Patil Limited)
Company Representative, NBCC

Okay. It means by end of sixth year or sixth to seven years, the project will be completed, right?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yes, it is.

Akshay Patil Limited)
Company Representative, NBCC

Okay, thank you. That's all from my side.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Thank you.

Operator

Thank you. The next question is from the line of Sumeet Rohra from Smart Sun Capital. Please go ahead.

Sumeet Rohra
Founder and Fund Manager/Director, Smartsun Capital Pte. Ltd.

Yeah, sir, just a two thing from my side. One is that, what's the cash we have today in our book? And sir, secondly, how much of land parcels do we own today at NBCC? Plus, we also had some land in Delhi, right? I mean, Gurgaon, I mean, I don't exactly recall which one. So how much of that land we have of our own, which is in Delhi, and how big is that, sir, and how much is value there?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

First question is first. I'll answer for you first question. The total fund available with NBCC is around INR 2,200 crore, out of it, non-dedicated INR 732 crore. Similarly, in HSCC, around INR 1,700 crore, non-dedicated INR 154 crore. In HSCL, INR 788 crore, non-dedicated INR 639 crore. In NSL, INR 85 crore, non-dedicated INR 83 crore. So we have land parcel in Delhi, that is, Ghitorni, around 22 acres. This also we are planning to develop this land parcel of Ghitorni. I think I have answered your question.

Sumeet Rohra
Founder and Fund Manager/Director, Smartsun Capital Pte. Ltd.

Sir, basically on the land parcel,

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yeah.

Sumeet Rohra
Founder and Fund Manager/Director, Smartsun Capital Pte. Ltd.

So I mean, how many parcels do we have all over India?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

All over India, we have around 15, 15 land parcels. Around 39 acres. 39 acres, excluding Ghitorni, 22 acres.

Sumeet Rohra
Founder and Fund Manager/Director, Smartsun Capital Pte. Ltd.

Okay, got it. Got it, sir. Thank you so much.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Thank you. Thank you.

Operator

Thank you. The next question is from the line of Vikas, a shareholder. Please go ahead.

Speaker 8

Yeah, hi, sir. Just want to check if there any plans for listing of our subsidiary down the line?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Pardon me?

Speaker 8

Listing.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yes, sir.

Speaker 8

Any plans for listing of our subsidiaries, sir?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yes, yes. We are planning. One more subsidiary.

Speaker 8

Any timeline, sir? This financial year, next financial year, I know-

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Next financial year. Next financial year.

Speaker 8

Understood, sir. Thank you. Thank you.

Operator

Thank you. A reminder to all participants, you may press star and one to ask questions. The next question is from the line of Miraj Shah from Arihant Capital. Please go ahead.

Miraj Shah
Equity Research Analyst, Arihant Capital

Thank you for the opportunity, sir. Just want to clarify one thing. You mentioned to one of the earlier participants in an answer that we're targeting profits of INR 2,000 crore in, I think, in four, five years. Did I hear that right?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Yes, yes, you are right. Exactly right.

Miraj Shah
Equity Research Analyst, Arihant Capital

Sir, what would be the margin? I believe you mentioned that INR 27,000-INR 28,000 crore would be the top line by then.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Top line will be around INR 25,000 is minimum, maximum up to, it may increase up to 10%-20%.

Miraj Shah
Equity Research Analyst, Arihant Capital

Understood. Okay. And sir, the cash level that you just mentioned of INR 2,200 crore, this is on consolidated basis, right, sir?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

No, no, no. This is only standalone NBCC. This includes client advance also, whereas our money is around INR 730 crore.

Miraj Shah
Equity Research Analyst, Arihant Capital

INR 730 crore is unallocated, you said, non-dedicated?

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Non-dedicated, yes.

Miraj Shah
Equity Research Analyst, Arihant Capital

Okay, okay. Understood. Perfect. All the best for the future, sir. Thank you.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Thank you. Thank you.

Operator

Thank you. A reminder to all participants, you may press star and one to ask questions. You may press star and one to ask questions. A reminder to all participants, you may press star and one to ask questions. As there are no further questions, I would now like to hand the conference over to the management for closing comments.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Once again, thank you, everyone, trusting on NBCC. We are trying our level best to improve quarter to quarter, year to year, both revenue as well as profit. So next year, we are focusing on our execution because we have already secured sufficient work order. Our main focus is to execution of the projects, that we are concentrating on that. So thank you once again, all the investors and Elara for arranging this conference.

Operator

Thank you. On behalf of Elara Securities Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

K.P. Mahadevaswamy Limited)
Chairman and Managing Director, NBCC India

Thank you.

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