NBCC (India) Limited (NBCC) Q1 2027 Earnings Call Transcript

Good morning, ladies and gentlemen. I'm Akash, moderator for the conference call. Welcome to NBCC India Limited Q1 FY27 earnings conference call. We have with us today, Shri K.P. Mahadev Swami, Chairman, Com Managing Director. Shri Anjeev Kumar Jain, Director, Finance. Shri Rishikesh, Executive Director, Finance. Shri MB Single, Executive Director, Finance. Shri Praklip Sharma, Executive Director, Business Development. Sribal Kishan Singla, Investor Relations. As a reminder, all participants will be in lesson-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 and zero on your touchstone telephone. Please note, this conference is being recorded. I would now like to hand over the floor to Sribal Kishan Singla. Thank you and over to yourself.

Thank you, Akash. Good morning, everyone. A warm welcome to all of you. For quarter one operation and execution, we have achieved a revenue from operation rupees 1823 crore stand-alone and rupees 2260 crore on consolidated, reflecting 10% year-on-year increase on stand-alone basis. On standalone basis, EBITDA increased to 150 crores from 99 crores in the corresponding quarter of last year, registering a robust 62% growth with the EBITDA margin jumped to 8.77%. Further, our standalone profit after tax stood Rs. 151 CR, representing a strong 32% year-on-year increase. Order book position. NBCC stand-alone order book stands 1,12,000 crores and consolidated order book 1,27,000 crores. Business secured. NBCC secured 1,600 crores on consolidated basis in quarter 1. Following are the major projects secured in quarter 1 by NBCC. Schools in different districts of Odisha are 253 CR. JNV campus in various districts, 171 CR. New Andhra Pradesh-Bavan at Delhi, 106 CR. Apart from the above, NBCC has secured a few major works in July and August. Housing project at Seychelles, that is Africa, around 620 CR. Residential and office complex, Reserve Bank of India, Amaravati AP, 780 CR. Science laboratory and various government schools of Rajasthan, rupees 431 CR. Business awarded to the contractor. In quarter one, we have awarded rupees 1,700 CR new tenders on consolidated level. In the next two, three quarters, we are expecting rupees 18,000 to 20,000 CR new works will be awarded. Okay, redevelopment projects. All major packages in redevelopment projects are in running stage now. Currently, we have Rs.10,002 of balance worth, which is going to be contributed significantly to the top line as well as bottom line in the upcoming year. For sale, resource mobilization under the 70% project, NVCC has sold the entire Bharat business park successfully and generated Rs.10,000 CR in just three actions within three months. Amrapani project. Phase 12 of the Amrapani project has started in different packages, and the project will have significant contribution in top line and bottom line in the coming quarters. Various packages of Goa redevelopment project have kicked off. First of its kind, outside Delhi redevelopment project. During the quarter, board approved the merger of HACC into NVCC, considering HACC is only owned subsidiary of NVCC. The proposed merger is expected to create operational and financial synergies by combining NBCC execution strength with HACC expertise, thereby enhancing scale, diversifying business opportunities, improving resource utilization, and supporting stronger long-term value creation for stakeholders. The Board has accorded in principle approval for incorporation of only one subsidiary SLSQE for the proposed CPSC REIT, subjected to approval of Administrative Ministry and DEPAM. Pursuant to Honorable Finance Minister Budget 2020's announcement on CPSC, REIT and DEPAM NBCCC has been interested to developing the structure of the proposed REIT. This is a significant strategic initiative that will support efficient asset monetization. Thank you. Now, the forum is open for the question and answer.

Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on the 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 star and 1 again. Ladies and gentlemen, if you have any questions, please press star and 1 on your telephone keypad. The first question comes from the line of Mr. Venkatesh Subramaniam from Logic Tree Consultants. Please go and stop.

Good morning. Congratulations on improving performance, sir. So 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 NVPC to the tune of 80,000 crores, especially you were talking about a couple of large orders. One was about 25,000 crores, another one also similar size. which were very imminent, but somehow it seems to be getting delayed month after month, quarter and quarter. Can you give us some idea, because it will help us to get us a sense of how FI27 would look like and FI28 would look like, because is there any inordinate delay happening, or it's just normal course of business? That will help us, sir. Order in the show.

One order we are expecting that is 5GPRA, that is the already ministry, minister, group of ministers already cleared, PAB also cleared, now it has gone to cabinet for their approval. So, it will come at any time. It is a redevelopment project. It is redevelopment project also. It is self-sustainable project. It is a unique project, not like just budgeted projects. Budgeted project, they will alert the fund and will get the PMT. It is redevelopment project. Not many issues have to be solved and rather, not many statutory approvals, clearance are all required. So because of that redevelopment project, it takes some time. That's all, nothing else. It is a matter of time. We are going to get earlier. What is the value of these two projects? Around 50,000 cores last time I told you, roughly 50,000 cores. Apart from that, we are doing discussion is going on in final level with some state government. I don't want to name the state government right now. So from state governments also we are expecting. So, this year we are going to get 50-60,000 pros, another business in our kitty.

Okay. So, is it fair to expect at least by the end of this quarter, we can at least get one or two contracts, possible?

At least one or two contracts definitely we are going to get. This quarter. But next quarter, next quarter definitely, third quarter we are going to get, I think, all.

All the projects. Okay, super great. The second question is, you had indicated a top-line growth, FY27, FY28, and FY28 or FY29 you said could be an interesting year because of real estate money coming in. FY27, are we holding on to our revenue targets, sir? I think you indicated about 16 to 18,000 crores, I think, roughly, yeah.

15,000 to 17,000, I already committed same thing still.

Thank you, sir. Thank you for those two. I will come back on the queue. Thank you. Thank you.

Thank you so much, sir. The next question comes from the line of Mr. Hardik Cheda from Lark Consultancy. Please go ahead with the question, sir.

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?

Definitely, definitely it is going to increase, because our redevelopment and number of early projects is contributing more than 60% of our total revenue. These projects are high-value projects, high-pnc projects. Definitely our margin will going to increase.

Any idea, sir, by how much could you just keep a call park range? By how much you expect the markets to go?

That, 6.5, 6 to 6.5 percent fat, and EBITDA 6.5 to 7 percent minimum.

Okay, thank you so much, sir. That's it from my side. Thank you, sir.

Thank you. Thank you so much, sir. The next question comes from the line of Mr. Vasudev Ganatara from Duvama Wealth Management Limited. Please go, sir.

Yeah, thank you for the opportunity and congratulations on great numbers. Sir, if you can just, you know, tell us about this 1,27,000 crore order book that we have. What is the split between PEMC and redevelopment in this?

PEMC around 40%, 60% and redevelopment.

Okay, sir. And this you just mentioned in an earlier participant's question that 50 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?

Total, total. Only GPRA around 30,000 we may get. Apart from GPRA, we are expecting two, three big orders. So, that's all together 50, 60,000 crores we are expecting.

Okay, that's great, sir. And, sir, I just wanted to know the status of this Vinayak Mandir Marks, Kindia Mark, and the Africa Avenue. Where are we on this?

Africa Avenue, already we have called an application for selling of 262 units. For 262 units, we have got the overwhelming response around 2,900 individually participated. So, that action has been postponed due to some technical issue. It will be going to open our award in this month only, August. Vinayak Manjir we are targeting in the month of September. And the other one, Palanji area, I think September, October. So, Bharat business were 100% sold out. So, wherein we could generate around 10,000 square rupees. So, now, for redevelopment projects, there is no money crisis. We have sufficient money. So once this Lila Africa Avenue salesman, we are going to get another 5,600 crore rupees. So our redevelopment projects, whatever we are expecting, 30,000, 35,000 crore rupees, fund generation, that will going to happen during this year only, sale part. It will be, of course, consensually to a plan. So we are going to get the money in two years.

Okay, that's great, sir. And what about the Netaji Nagar project?

Netaji Nagar, already a construction is going on. GPO completed and ended over. Now the ministry from North Black and South Black, they shifted. 2-3 ministry already shifted. Coal ministry shifted. Sealed ministry already shifted. Some other ministries, they are going to shift in GPOA. And apart from that, Nitazine Agar, all the tenders we have awarded, that is type 6, type 7, type 8, so concession is going on.

Okay, sure, sir. And, sir, in Amrapali, you know, when do we expect to complete the phase 1, and in phase 1 and phase 2, you know, how much have we monetized till date?

Phase 1, almost we have completed out of 24 projects, 23 projects we have completed. 24th project also ready, that is, Adhra Sabha Shivna, which was the last project, which is the last project. We are going to end it over, already the phase manner ending was started. So, in phase 1, we have completed all the 24 projects, ending over is going on, and phase 2, already we have awarded, so it is in full swing. One project, already we have reached up to 20th floor. We have captured up to 20th floor, wherein we are using new technology, not new technology, monolithic construction technology, that is my own sharing. We have already reached in one project 20th floor. So other projects we have gone up to 13th floor. So it is in full swing. Phase 2 also is in full swing. And commercial one, commercial properties, that we are going to complete by September, October. That project within the time we are going to complete commercial project wherein we are going to generate some revenue also. And the FAR projects also we are going to get some revenue. Two projects are yet to be sold, rest of the things already, pipe packages already we are still in through bulk sale.

Okay, so how much, if you can just quantify in terms of units or value that we have already sold?

Ah, total 8800 units, AutoFix almost 4000 to 4500 units already sold.

Okay, that's great, sir. And, sir, what about our Supertech projects? So, where are we at?

Supertech project, already for all the projects, we have already the consultant. So, they are preparing their balance work quantity. So, hopefully, during this quarter, we are going to call a tender and we are going to finalize the tender also. So, next quarter onwards, I think we are going to get the turnover also from Supertech. Okay, that's great, sir. That is 16 projects. 16 projects. Supertech, we have a 16 projects, sir. Navada and greater Navada.

Yes, sir. Sir, yes, similar status about Naveen Nagpur, Mahapurit, JNK, and Mumbai Food Trust.

JNK, one tender already we called. Technical evaluation is going on. Technical bit already opened. It is to be awarded, that is the infrastructure for the development of the plots. Another five tenders we are going to publish during this month, valuing of nearly 3,500 here. So, now J&K through, so we are going to get the revenue from top line as well as bottom line from this project. Namil Narpur, good news is already they have acquired 400, 450 acre land out of 1,000 acre land. So, consultant already appointed, DPR, preparation of DPR in final stage, we are going to get the approval of the cabinet of the DPR. Once the DPR is approved, then we call the infrastructure tender at the earliest. Hopefully during this quarter, if not, next quarter definitely.

Hello. Sure, sir. And, yes, sir. Yes, yes, sir. And about Mahaprit?

Mahaprit is still not mature. So, hopefully, like, next quarter it will be going to start. Mahaprit, of course, it got delayed. And, Goa, you already started. Goa, you already started. Goa, you already started. Pardon me? I'm audible? Yes, yes, sir. Yes, sir. Gova already we have ordered four packages. Over two packages tender yet to be done. So, Gova also we are through. So, Gova already is in the site mobilized and work also started.

Okay, that's great sir. And now when are we looking for launch our Jatorni and Gurgaon Sector 37D projects?

3070, we got already awarded the contract. Contractor has mobilized. This file also has already done. One approval we are seeking regarding revised plan as well as revised EC, environmental clearance. So that will, I think, hopefully it will come during this month. Once we received means already it has mobilized. We have to register in the RERA. Hopefully, next quarter onward, sale will take place in 3070. Regarding returning, the final shareholder agreement is in progress. Once it is over, it means we have called the consultant center also. We are hoping to finalize during this quarter the consultant. Then I think last quarter, I think we will going to get, start the project, but revenue will come, both the projects, the revenue will come, after a position. So it will come after two years only, revenue point. But cash info will start.

Yeah, that's great, sir. So, sir, total, you know, what is the pre-sales that we are targeting for this year then? Pardon me, target, top line. Pre-sales, pre-sales. Like from the total real estate that we have our own real estate. So, you know, what is the total sales we are estimating from this?

Real estate sale, we are expecting during this year.

Real estate sale? Can I answer this question, sir? Thank you. Ah, real estate, in fact, we have three types of sales, sale of land, sale of complete inventory, and sale of construction. So, we are expecting a revenue of approximately 500 CR from real estate. As long as launching is concerned, definitely we are going to launch the 37D in the, I think, second or third quarter.

Okay, that's great. And so, lastly, you know, just what is the cash in our book? So, this is the last question. Cash is 666 crore as on 30th June. Sir, it was 6,500 crore last quarter, so no comparable figure. Nice, 666 CR, I am saying. Okay, got it, sir. Thank you. That's it from my side.

Thank you so much, sir. The next question comes from the line of Givija Ray from Nirmal Bank Securities, Private Limited. Please go ahead.

Hi, good morning, sir. Thanks for taking my question. So, I think I have missed a few things. This redevelopment project, you mentioned, you know, the kind of order book we are expecting. What is that, you know, any idea? What was the amount we are expecting? Redevelopment project?

Future projects.

Future project, redevelopment, redevelopment project. In your opening remarks, I think the second participant, he was asking. Yeah.

Around 50% on redevelopment, total order book around 50% redevelopment, 40% PMC or ETC. Thank you very much.

You mentioned this redevelopment project is expected to come in the second quarter or third quarter. So, that order.

That is 5GPRA colony, new development in New Delhi, 5 colonies. So, Lodi colony, Andrew Gans and DAZ connect such area. That will come around 30,000 rupees order we are going to get shortly.

Okay, 30,000 the road. Okay. So, and many congratulations for very good, you know, the EBITDA margin, I can say. But small doubt I'm having this EBITDA margin, I can see, because of our cost structure, right? So I can see this work and consultancy expenses has came down to 1,536 in one QFI 27, from 3,412 in four QFI 26. I'm talking about the standalone basis. So is there any major changes or anything we have, you know, adopted? That's the reason this has come down, or we can see a spike in this EBITDA margin?

Why this marketing, sorry, why the EBITDA got gone up? The reason is we are doing redevelopment projects. In redevelopment projects, we are getting two type of fees. One is PMCP, that is construction and monitoring everything, sorry, construction and execution, supervision. The other one is marketing fee. During this quarter, we got marketing fees through selling of the bar of business store. So, wherein the expenses will be less, and we are getting good profit margin. That is the reason, of course, we are going to get, this will be, in this quarter also, we are going to get the sale of residential plots in Africa Avenue, that will come to our kitty, and we are going to sell, and some more property we are selling in 7G Paira, that's Sarojinnagar. From which we are going to get marketing fee, and of course in Amrapali also, we are getting 8% PNC and 1% marketing fee. So, there also we are going to sell around 4,000-5,000 crore rupees inventory. By selling 4,000-5,000 crore rupees inventory, we are going to get 1% of the marketing fee. So, that's where our EBITDA has gone up.

Great, great, sir. So, our FY27-28 revenue target is 15 to 17 K, you are saying, right? 15,000 to 17,000 per hour.

16 to 17, precisely, 16 to 17.

Okay, 16 to 17. And any guideline for FY28 or something like that?

28 to around 21,000 per hour, and 29, 25,000 per hour. We are expecting 24 to 25,000 per hour.

Okay, okay. Thank you, sir. Thank you very much and all the best.

Thank you. Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. I repeat, if you have any questions, please press star and one on a telephone keypad. The next question comes from the line of Mr. Pankaj Kumar from Kotex Securities. Please go ahead.

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 PMQ, we've seen 12% growth. So is there any specific reason related to this quarter that why there is a lower growth? Because if you look at the four-year targets, you mentioned 16 to 17,000 crore of sales in five conditions.

On a standalone basis, we have a growth of 10%, but unfortunately, due to one of our subsidiaries, that is HACC, there our turnover revenue has gone down, dipped down, due to merger, and one project they bagged on very low PMCP, RSP government, that we are, rather we are foreclosed. So, due to that, the turnover got down, but anyhow, the profit is increased, and on standalone basis, our performance is very good in the first quarter, compared to previous year also. The first quarter usually will be a slower pace. Second quarter onwards, it will kick up. So, that is the reason. CCC, we foreclosed one contract from Marasa State Government Health Care, wherein we got the order only 2% margin. 2% margin means that even our consolidated level EBITDA also got affected due to that. So, that is the reason.

Yes, sir. For the full year guidance, stand alone, what kind of numbers we are looking at for S52728?

Around 13,000 to 14,000 crore rupees on standalone. 28, we are expecting around 21,000 CR, 29, 24 to 25,000 CR. And the pad will be around 1100 to 1200 during this year. Next year 13 to 1400, 1300 to 400, and of course 29 around 2000 CR. We are expecting a pad. Thank you. Our real estate project is going to contribute, 30-70 will contribute more profit margin. So this is on the stand-alone yourself.

No, console, console basis. Oh, console, okay. And, sir, regarding this Mahapri order, what exactly is the status, I mean, where it is stuck, and can we expect this to come in the order book in this current financial aid? Because earlier you had died for 2 lakh crore of order book, and you are targeting another 50,000 crore, so that doesn't match this 2 lakh crore number at the end of the financial aid.

Yes, of course, out of all the redevelopment projects, Mahaprit still stuck up with the approvals. Actually, still we could not get the approval from the Mahaprit and the company. Anyhow, I think on the third quarter it will be going to be resolved. So we are discussing with them. Hopefully third quarter onwards it will start. JNK also one and a half year back order, but now it has come to on track. So, because if the state government, in central government, of course, in central also, the redevelopment projects, it is a self-sustainable project, wherein money is the main issue, we have to get the loan also, or some sort of, seed money is required to start the project, till... Sale takes place. So because of that, Mahaprit is getting delayed. Hopefully, third quarter onwards, Mahaprit is also going to mature.

Sir, lastly, on the REIT, as you stated in the opening remarks, that you would be eligible for protein's DPSC REIT. So if you can highlight more on that, which all projects will come into that, and how much investment will be required.

As you know, in the budget, the finance minister announced that the government will come out with a national RIT. And MBCC being the only CPSC having a real estate experience, and the SEBI regulation provides that only for launching a RIT, sponsors should have a real estate experience. So, we are the logical ally for the government of India to be a sponsor of a national rate. So, we are now in discussion with Deepum, and last day itself, we have approved a formation of SPV, wherein we will transfer our three rentable assets, 75,000 square feet of assets, we will transfer to SPV, and then we will work with MTNL, ITI, BSNL, or lot many CPSCs, Vipam is having a meeting with lot many CPSCs, and we are identifying the rentable assets first. Once the rentable assets are identified, then we will identify how much fit-out is required to make them rentable. So, each and every CPSC will create SPV and will be the natural partner for fitting out, refurbishment, as well as redevelopment of those assets and to make those assets rentable. Once a considerable portfolio is available in those SPV, then we will launch a national REIT and we will go for public. As you are aware, the REIT is always public listing. We have started the work, our basically SPV, creation of SPV is just the starting point. I mean, any timeline we can expect, say, at the end of the case? You know, five or six REITs are there, and portfolio under those REITs are in the tune of 40,000 to 50,000 CR. So we are in talk with CPSC, because CPSC assets are, some assets are required refurbishment, some assets are required redevelopment. So, right now, it is difficult to put any timeline, but as soon as we are able to generate or gather a considerable portfolio, then only we can launch a national return. Thank you so much, sir.

The next question comes from the line of Prem Lunia from Astute Investment Management. Please go ahead, sir.

Hello.

Yes, sir. Can you hear me? Yes, yes, please. Yes. So, congratulations on the number and the margin, sir. I just had a few questions. So, when we had the investor days recently, we talked of we would be willing to award almost 30,000, 32,000 crores of projects this year, the awarding from NVCC. But we are seeing that in the first quarter, it is a very smaller number as of now. Are you sure that, do you believe that this 30,000 crores can be achieved this year?

I am very much confident. Actually, you cannot compare to quarter to quarter for award of work, because some quarters we will get, go to get, put down order book, sorry, award, some quarter less. So, still we are confident to award around 20-25,000 scores here, because we have to award SuperTech around 10,000 scores of order, J&K 3,500 in phase one. So Rajasthan, Mandapam also some 3,500, so it will be done during this year, that figure I am still confident, we are going to award.

Is there a possibility we can do more, maybe 35,000, 40,000 because we have order book pending?

Yes, yes, yes, yes. We are cared by, of course, Supertech also got delayed, now we got the clearings from Supertech also, Supreme Court. So this year we are going to award around 20, 25,000, easily.

Right. Sure, sir. And I wanted to understand the use of the profit which we are generating. We have bought this one tower in the business park. When will the cash flow, cash go out from the company? What would be the timeline for that? Because we would be paying that amount, right?

It is construction-linked plan, so only first installment 10% we have paid, so best of the payment will be as long as, as soon as the structure is completed, suppose it's the foundation completed, we have to pay some percentage. If it is gone to third level, then some percentage, sixth level, ninth level, ninth floor, similarly finishing. So it is a construction-linked plan, cash flow will go in two years.

Okay, so we can assume that out of the maybe 1,100 crore which we are seeing that we might achieve this year, and maybe 1,300-1,400 crore which we do next year, a good chunk of it would be going in this project.

Cash flow will go. Cash flow will go. It is a get-back. Cash will go. And one good news for you, last time we purchased that on base rate. That is, 39,100 rupees we purchased that hour. Recently, last action, the price has gone up to 66,000 rupees. That much appreciation we got, already got. So, in the ground floor, it has stretched around 56,000, and the upper floor, 50,000 to 55,000 rupees, floor-wise it has gone, whereas we purchased at the base price of 39,100 rupees.

Sure, sure, sir. And also, I wanted to understand very specifically on the new colonies in Delhi. What is the status on those projects, the 150 colonies across which we were talking about?

The 150, out of 150 colony, the current proposal is only for 5G per colony. So, current, that is almost 50,000 course value, it will be generated. And 45-50,000 pro rupees expenditure. So, wherein we will go, presently we choose five colonies. One is Lodi, other one is Andriugan, DAZ, Lakshmi Bayanagar. So, this colony will be redeveloped. So, once it is redeveloped, means the waiting list of GPRA will be sorted out. And we are going to get some marketing also, because of commercial point, by selling commercial area, we are going to consider the GPRA colonies.

Sure, sure, sir.

And we are not, we are not taking, not by colony. Only five colonies we are going to take presently.

Okay. Sure, sir. And the last question, which are the assets which we are thinking of putting into the REIT, which sir explained in the last question?

Anjuji, only our voltage... At present, we are planning to put 75,000 square feet worth of asset in our SPV, which will ultimately go to the RIT, once the RIT is formed at later stage.

Sure, sir, but which would be these assets? This would be the business park tower?

Business park tower? Business work is right now, you cannot put REIT, if you want to put in REIT, it has to be completed, not under the construction, you cannot put in the REIT, sorry, in REIT. So, once it is completed, then we are thinking, we are thought of putting on REIT.

Sure, sure. Thank you so much.

Thank you. Thank you so much, sir. The next question comes from the line of Ankita Shah from LRA Capital. Please go ahead, ma'am.

Yeah, hi. What has been the key reason for the delaying project awarding? The causes that we've already got, but yet to be awarded to the contractors, almost 95,000 crores in pending. What stops us? I mean, what is the reason for this?

Ma'am, these projects are large projects, self-sustainable projects, not redevelopment, exactly. I will not put the word redevelopment. Of course, it is a redevelopment. Suppose JNK project, it is 15,000 crore project. It is self-sustainable project, wherein government clearance also 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 few years, this project is takeoff. So, similarly, Mahathrit is a big value, 25,000 crores, but it is getting delayed due to various reasons. And the other project, Supertech. Supertech went to, at that time, the agency, the builder went to a Supreme Court, but fortunately, we could 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 major projects around 50,000 crores work order. Got delayed due to various reasons and various approvals. That's all. Nothing else. Otherwise, we will go into now. Pardon me? You wanted to say something?

No, go ahead, go ahead, go ahead.

That's all. Of course, Goa government, we recently got the approval, and there, proactive, we have ordered four packages. So, the state government, there are approvals and all, and of course, generation of funds. I mean, of course, recently, we had an MOU, so that has almost 400 acres of land, they acquired. In the, through farmers, another 400-500 acres going to acquire. Once it is acquired means, parallelly, we are phase one, we started the infrastructure development, that DPR is in process. Once it is over means, then we are going to call the tender of Naveen Nagpur also.

Now, out of this 90,000 crores, how much do you think will be awarded this year?

2025,000, I have already committed minimum 20-25,000 we are going to award during this year.

Okay, and then balance 70-80,000 crores will be worth next year, next year, next year. Is funding a constraint for these projects?

Ah, of course, seed money is the main constraint. Apart from other approvals, touch-ray approvals, you have to get any project you want to start means you have to get the environmental clearance. It will take at least six months. It has to be registered online. Similarly, other approvals, airport clearance, Delhi means traffic. There will be around 18 to 20 approvals you have to get. Then only you can start the project.

This one is arranged by us or the client.

No, some projects we are incurring, but some projects we are telling to incur by the clients, or recently we added a move to resolve this issue, because client also don't have money. So to resolve this issue, recently we added a move with ADCO. For giving seed money to wherever required. Provided the government is willing to give or capable to give the sovereign guarantee, then ADCO will ready to finance. In this model, already in Naveen Nakhpur, we have arranged a fund around 3,500 crores to acquire the land. So that process is already through.

And for projects where we have to arrange the seed money, are we raising those funds, or we are waiting for better clarity before we start raising funds from the financing agencies?

In 7GPRA, we infused our seed money, and currently we put some money in Amrakwali. That's all, these two projects, and of course, some money to DTC. We have put some seed money in DTC in small amount in Delhi Transport Corporation. So, rest of the thing, the client is arranging. Currently, Kerala Housing Board, I think, now, the state government is going to take the loan.

So, I point to give in for the new projects, which are yet to start, you are not arranging the seed money. Probably because you are not clear on the approvals and, you know, clarity on the timelines of approvals. Is that okay?

No, I can't. J.N.D. Ankita, we are facilitating them to get that money either through a loan by mortgaging their asset or because our role is marketing of those assets or pre-launching of the asset or launching of the asset to get the fund under re-development stream. But we are also facilitating them. CMD has told ki we have a MOU with Hoodco also. Wherever any seed money will be required for those projects, maybe of the state government, then Hoodco will pitch in and provide money to state government, and state government is able to give the mortgage of the land and all this. So we are facilitating them.

My only concern is even the order book looks very strong. However, approvals are significantly delayed and, you know, the timeline is getting extended, which is impacting execution. So we need better clarity on execution ramping up over the next nine months and which will come only if we have clarity on new project contracts awarding to the contractors coming through. So that was the whole process of understanding.

I already explained to you, so due to various approvals, the project got delayed, two reasons, one is fund, other one is various approvals. And of course, first time we are extending this business to state government. State government way of working is... They are not picked as central government, and they don't know the procedure. They are in the process of learning the procedures and all. So anyhow, now it is true, and only Mahaprit is getting delayed, that's all. The rest of the re-development projects already, we are in the fast track, I can say.

Apart from that, is there any other clarity or pipeline of projects? You already mentioned the GPRA projects for 50,000 crores. Apart from that, anything else in the pipeline for this year in terms of inflows? I think that's it.

We are talking with various state governments and some PSUs also. We are talking with PSUs. I don't want to name their M presently. Once we will get the order, then definitely we came to know that. Yeah, I think that within this month or next month, you are going to get some more news. Don't worry.

As if state government projects are kind of getting, you know, slow, I mean, should we continue to focus on state government projects? Yes, yes, definitely. Something that we need to be cautious about.

You know, everywhere, wherever we are going in the state government, we are doing on PMC basis. We are not infusing any of our money or anything. So it is a PMC project. As long as it is a PMC project, we are safe. But the matter is only time. So, the state government is having very good land person in the prime location. Unfortunately, they could not monetize properly. We are the only agency, after Motiba, Kidwayanagar, and now Savindipere, since it is a 15-year-old company in redevelopment, and one of the unique profitable margin project that is redevelopment. So, we can better utilize of FAR, because earlier projects, it is only ground floor first floor. If you don't monetize this land in prime location, what is going to happen? Either it will be encroached by someone else, or it will be maximum a forest. So, better monetization is the best part. So, we have expertise, and state government don't have money, and they need not to invest money. That is also the duty of this project. So, that's why we have a good win-win situation for state government, for us, and lot of employment will be generated to do this. Not only the employment, so we are paying almost 18% GST to the government of India and state government. They will go to get the revenue through GST, income tax, labor sales. Apart from that, they will go to get good number of employment generations. So better model why we should not go to state government. So we wanted to expand our business throughout India. It is a national building construction company. Why is it restricted to only Delhi? This is our concept.

One last thing, what will be the ownership structure of the REIT that is planned?

Thank you, Amita, that right now we are in the process of formation of the SPV, where we will transfer our asset to that SPV, and ultimately the holding of this SPV will transfer the RIT whenever RIT is formed. Rate will be found when a considerable number of portfolio is gathered, because we are still in discussion with various PSUs. So once that portfolio of asset is available across a number of SPV, only then we will have a national level rate. So, ownership, ultimately, sponsor will be NBCC only, that is clear, and ownership will depend on the assets put under that portfolio. If a particular SPV wants to put their assets, that first ownership of all SPV will be with that CPSC, and once it is transferred to RIT, that again unit will be issued to that CPSC only. But we may put some money in the form of development expenditure, fitting our refurbishment out. For that refurbishment or development, we may take some ownership. But Ritki ownership will be decided once it is formed, after a good chunk of portfolio is available for rentable assets.

You got it. Okay. Thank you.

Okay. Thank you. The next question comes from the line of Sumit Rora from Smart Sun Capital Private Limited. Please go to.

Yeah, hi, sir. Good morning to you. Sir, you know, the thing is that your standalone numbers are clearly, you know, very encouraging. But, sir, you know, the way the market is actually looking at it is that, you know, the thing is that you have an order book today of 1,27,000 crore. You have said repeatedly that, you know, you're going to get those 50,000, 60,000 crore. So, sir, market is, was of the view that, you know, you will end the year with about 2,000 crore kind of order book. Now, sir, the thing is that, you know, that out of book, I mean, of 1,20,000 crore which you have today needs to be executed over the next 4 to 5 years. Now, sir, you know, somehow, you know, the revenue growth, okay, is basically not kind of reflecting, you know, what is actually supposed to happen, right? Because, I mean, if you're supposed to execute 1,20,000 crore over a 4-5 year period, your run rate has to get to 20,000, 25,000 crore. And at some point of time, when your order book is 2 lakh crore, it has to get to 35,000 crore. Sir, what do you think is basically, you know, kind of, you know, coming in between us? Because the potential for this company is enormous. I mean, there's absolutely no question on, you know, on that point that, you know, this company can actually, you know, be one of the best PSUs in the country. But, sir, you know, it is not translating into revenue growth. Because even if you see your consultant number, you know, you have very clearly highlighted that that is because of, you know, your merger or whatever that is. You know, but the thing is that, sir, so do you think that this revenue growth is now, you know, at that point of time where, you know, you will see, you know, a sharp offtake over the next couple of years? So, if I understand correctly, you said 16,000, 17,000 crore revenue will basically be for current financial year, and next financial year, you said, will be about 21,000. So, sir, do you think that, you know, there is scope, you know, to kind of, you know, outpace those numbers? Because your order book is clearly there, you know, and the fact is that you have the business, You know, you have the sector 37D project, plus you have Meroli, you know, plus you have, you know, Bombay Port Trust, you know, you don't have the work.

Hello.

I believe Mr. Sumir has left the line.

Okay. So I will just, next question then, otherwise I can reply both questions at a time. Sure, sir.

We will take the next message from Mr. Dakshmar Hotra from Adriff Global. Please go ahead, sir.

Yeah, good afternoon, sir, and thank you for the opportunity. Actually, my question is also on similar lines. So, you know, we have discussed that we have a substantial order book, plus we have these five GPRA and other state orders coming in, amounting to 50,000-60,000 crores, and on different platforms, we have mentioned order book for this year to be 2 lakh crore plus. Secondly, in the first quarter, you know, it would be really nice if you can help us understand how will the HSCC merger help us while that Maharashtra project, the margins were very low. Now, if we merge it with the parent NVCC and it becomes easier for consolidated, for the standalone to, you know, be understood better. Other than that, how is that going to help us? And, you know, in Q3, we expect GRAP to again slow things down for us in Delhi. Given the ruling from the government from November to January, the construction has to be, so I don't see us even achieving the 16,000-17,000 crores revenue on consolidated basis and given that our run rate for PAT is 150 crores would be 150 in the first quarter, even if we pull it up, sir, how can we, you know, From 600 to 750 crores, just some light of confidence needed on the pat number of 1100-1200 crores that we are anticipating for this year. How is that going to be a reality? In which quarter will we see the real jump? 7G, Gurgaon and Vidurmi, the real profit drivers are also coming from the next couple of years. So, you know, is it going to happen or will we sort of falter on our commitment once again? Thank you, sir.

It will going to definitely happen. We have figures. I am not committing like that. So, otherwise, I could have told I am going to execute 20,000. I am saying 16,000 means I have a backup also. And similarly, I have 1046 means that also 1100 means I have a backup. Definitely it will be achieved. Considering all the factors, whatever you have mentioned, graph, everything we have taken into care, account, then only we are committing. Otherwise, simply I can say 20,000, 4 rupees, 1,27,000 is there, I am going to commit 20,000. I am saying 16,000 means it will be definitely achieved. You can see last three years, whatever we are committed, that we are going to achieve. After a gap of 4-5 years, the company is getting excellent rating. The excellent rating measured by all the parameters, whatever you have mentioned, beyond also, some parameters, even negative marking is there, that also we have tried to achieve. Not only in the part, in the taking care of investors, we have to do profitability, we have to do social responsibility, we have to do R&D. There are 10 number of parameters that as measured by DPE. And one thing I wanted to share with you, last year we got, I think the second PSU got a score of 98.65 point score. So, we are doing, but unfortunately, you are right. So, the big orders, one is Mahathri, Supertech, and Jammu Kashmir. They are all these three projects adding together around 50,000 pro work order. It is got delayed. J&K, now I threw, after one and a half, two years, it has threw. So, with the way of working of state government, you also know, so it is taking time. But, definitely, it is achievable. There is no gimmick or something like that. We are going to achieve the profit. I have a backup. Currently, I don't want to share it with you. So, 1,000 GARASOT, 1,200 profit, definitely, it will come. And around 16,000 crores. As you rightly asked, the Dittorini and 3070, that profit will come after two years, not now. But we have other real estate properties. That I think one Jaipur property already we have started construction. Other property we wanted to sell it or we are going to sell the property. From that also we are going to get some money and profit also. So, we have a backup. Don't worry. I am committing. Still, I am committing that figures. Whatever I am saying, that figures are out in each.

Good to know, sir. And on the HSCT, if you can shed some light, how will that merger, apart from the compliance, how will it help us and can we bring HSCT out of the existing, you know, situation of giving a negative impact on revenue and profit?

Yes, yes, definitely. What happened? When you purchase HACL, HACC, HACC used to do steel plant projects. And one steel plant project while construction. Once the steel plant, all the steel plant commission, then they didn't have a work order. And it was literally in the phase of closure or wind up phase. That time, NBCC 2018, we procured the company, we acquired the company. And today that company is a mini-retna company. I was the CEO of that company for two years, and we got mini-retna in less than three years. After 29 years, we got the profit. Almost three decades, that company was running last. So now we got the work order during the 4 year COVID period, we got around 3500 towards work order and that company survived and presently it is a profit making company and headquarter at Calcutta. Do you know how to work in Calcutta? So still that company is making profit. Similarly, HCCC we acquired in the year 2019. Unfortunately, these two companies, they are quoting very low fee. Whereas their overheads are more than whatever they are quoting. The overheads are around 3 to 4 percent, but they quoted 2 percent. So that we have stopped. Why we should work on loss? Let it be, if you are not getting top line, okay, but on loss, you should not work. So that's why Maharashtra work we stopped, wherein we lost around 300-400 rupees top line, but profit-wise, not much more impact, but this I am going to cover with my standalone project that is NBCC, NBCC project 70 peri, all the tenders. It was awarded in 2000, almost 8-10 years back, that could not be materialized, but now we have awarded all the packages, around 10,000 per work order is with us. That has to be completed within 2 years, I think in less than 18 months. So 5,000, 6,000 per work order, I am going to get the top line from this project. Similarly, Amrapali has to be completed in two years. There also I am going to get 5,000 to 6,000 pro rupees top line. So, only these two projects I am going to get 10,000 pro. Similarly, Supertech will go to award, JNKI will go to award, this whatever figure I am saying, I have a backup calculation, nothing to worry, I am still adhering this figure.

Sure sir, good to know. You know, on the long-term trajectory of the company, we are very convinced, but sometimes in the quarterly run rate, then we don't need to.

I fully agree, I fully agree. Conversion took too much of time, but nothing to worry, we are going to execute. Good. Just to read the official story, then I think you can imagine how it was the company. Even Tata Nono, they have stopped their working and they put a plant in Anand. Whereas, NBCC... Did the HSL unknown story. So now it is a profit making. And one more thing I wanted to highlight you. Amrapali projects, when we took our Amrapali projects, that time even our all the contractors, big contractors came to me. I was the in charge that time. I was the executive director of Amrapali projects. They came to me and they told, Sir, why can't you foreclose this project? Today you know what is going on. Almost 8,000 workers, we have top line, we have completed, or bottom line also, almost 9% we are getting on that project, 8,000. And we have paid 2,000-2 rupees GST to state and central government. Lot of employment has generated, and the home buyers, they have suffered last 8 to 12 years, they got their home. The genuine home, they got it, and we have completed that project, due to which Supreme Court once again interested the work of Supertech. So that is the confidence they have on NBCC, and one thing I want to tell you, whenever any PSU fails, private will take over. Example, Eringer fails, Tata took over. Whereas in this case, reverse, a private builder failed, and PSU is completing that project. So, that is the turn on story for NBCC, for investor like you, confidence on us, so we are doing that job.

Thank you sir, wish you the best. Thank you.

Thank you so much sir. We have Mr. Sumitra Ohar from Smart Sun Capital Private Limited back to the call, please go ahead with the question sir.

Yeah, my sorry, my, my, my, my, my apologies, my call just got. I missed you, I missed you. I missed you.

I missed you, yeah.

Yeah. So, sir, you know, so, coming back to the point, sir, you know, so, under your and Anisha's leadership, I mean, you know, there is absolutely no question of the fact that, you know, you both will take this company to a different height. But, sir, you know, just that, you know, as you explained, you know, to the last participant as well, that, you know, there are a little bit of confidence in building measures which need to be, and, you know, you explained so much in detail. So, I won't be, you know, repetitive to ask the same thing again, but, you know, I will just, you know, kind of just, you know, tell you that, you know, the potential is enormous. Your plate is full of, you know, orders. You know, the only thing, sir, which basically keeps us away from glory and from being, you know, ranked as one of the best public sector companies in this country is basically on the execution. So, sir, you know, if you can just get that, you know, ball moving, you know, at a faster clip, you know, then, you know, I'm sure that, you know, this is headed for a totally different trajectory. So, on this note, sir, I'll wish you all the best, good luck, and hope to, you know, see you on the next conference also. And thank you so much.

Thank you, Sumit. I just want to tell you this. Whatever our project is delayed, there are reasons beyond our control. Otherwise, why you should make a delay project? We are pursuing, unfortunately, the clients, the state government way of working, because of that, it got delayed. Three projects, that is, one is Supertech, other one is JNK, and third one is Mahapake. This is 50,000 crude cover carder. So, this conversion is late, JNK is through. Supertech. JNK के ये tender अमने थ्रो किया, almost 15 पार्टी पाटिसिपेट किया हुए, technical evaluation is going on, so once वोगतो ओच्वोटा स्काम्ता 100 प्रोर का, just infrastructure के लिए, now 3500 प्रोर का tender अमार अपास ready है, so we are going to float this month itself, so वो अबाट होजयेगा, तो JNK थ्रो होजयेगा, phase 1 starter होजयेगा, phase 2 भी चालो होगा, similarly महा That's a good delay. Hopefully, this quarter will move on to the next quarter, and this quarter will be the next quarter. Currently, whatever figures I am projecting, I don't have to take Mahathrit. Mahathrit will be added. Definitely, it will be added to our city. Mahathrit, I will not take Mahathrit, only super-take-up with only party. This current, which is already running, is not our project. I will talk about it. These two projects will naturally change. It will be surprise news to you. Rather, it will be a bonus. Okay, I am taking conservative visa, definitely it will be achieved.

Sure, sure. Wish you all the best, sir, and good luck, sir. And I sincerely hope that, and I sincerely hope that, sir, we can get those big orders, you know, because I mean, I mean, you know, for those two.

Oh, today, today, the cabinet is running, at the earliest you are going to get PAB already approved. Why are we are not informing to stock means? We are waiting for cabinet approval. As soon as we get the cabinet approval, immediately we will be going to announce you.

Sure, sir. Sure. Thank you so much and wish you all the best, sir. Thank you. Thank you. Thank you.

Thank you, sir. We have one follow-up question from Mr. Vasudev Gantara from Nuama Wealth Management. Please go ahead, sir.

For the follow-up opportunity, sir, just one update on the Dubai operations. Where are we over there?

Dubai operations is well on track.

We have already got the developer license, and as you already know, the domain is there that we have already had a land parcel purchased. And we are constructing housing units there, around 66 housing units. All the design local authority approvals have been obtained. And recently we have floated a RFO for selection of brokers. So they will be helping us in doing the marketing and sales and promotion and all those activities. So, we are very much well in track. As soon as the marketing consultant is on board, he will do the branding and the sale proposition and all those activities will start taking place. And the construction tender is also most likely to be voted in the month of October. That is our planning.

Okay. Sure, sir. That's it, sir. Thank you.

Thank you so much, sir. Then enough for the questions. Now, I hand over the floor to Mr. K.P. Mahadev Swami for his closing comments.

GPRA redevelopment, all major packages are under execution, with approximately 10,000 worth of balance worth, will be going to execute within two years. Successfully sold entire Bharat business worth, only three to four months, in three actions, just three actions, under seven GPRA redevelopment projects, and few more projects are in the pipeline for sale, action that is including Vinayak Manjir Mark, India Mark and Africa Venue Apartments. Amrapalli project, phase 2 execution has come across multiple packages and expected to contribute significantly to revenue and bottom line, that is profitability, in coming quarters. JNK Satellite City, Rs. 3,500 to 4,000 crore tender will be uploaded very soon. Super Tech project is going to award upcoming months. Navin Nagpur Infrastructure Work also is going to upload shortly. So, one thing, apart from this, I wanted to share with you. Thank you. NBCC का पास इतना order book है, इतना अच्छा investor से आप लोग, it is a listed company, ये company का future भी बोथ bright होगा, and whatever we are committing, definitely वो last making company को profit करके mini रत्न बने, just three years में होगतो, ये company का पास इतना order है, we have a good working staff also, वहाँ only just 22 regular employee हीता, almost सारे contractual employee हीते. One company turnover, okay? Turnound, okay? Today's good news is that IAM has made a part of the HSL turnover story. IAM has made it, and now it will go to an award and get a case study. Similarly, we are doing a case study. It is a unique... It was a peculiar case. Builders had in between all the home bears cheats and went there. We are making a place for them. Today, they have a lot of appreciation for the home bears. Suppose they have invested at the X price. Today, they are getting 4XX or 400XX to 500XX. We are going to get some private projects in this process. Those start projects, they will also get started. And recently, Sheshel's में multi-successful story होने का बद में, 2000 houses हम complete करने का बद में, अभी Sheshel's government 1000 मका नम को दिया हुआ है, वहाँ बनाएंगे, वहाँ आस्पेटल होगा, आस्टेले में we are expecting some business, Saudi में कुछ business मिलने वाला है, Fiji में कुछ business मिलने वाला है, We are going to get that at the earliest. Trust me, whatever we are committing, we will try to honor it, and we are going to adhere it and achieve it. With this, once again, thank you all. Thank you. Thank you, sir.

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 Doorsabha's conference call service. You may disconnect your lines now. Thank you, and have a pleasant day.