NBCCNSEQ4 FY2022June 06, 2022 NBCC (India) Limited
2,947words
81turns
7analyst exchanges
6executives
Management on call
Pk Gupta
CHAIRMAN & MANAGING DIRECTOR -NBCC
Rajendra Chaudhar Y
SENIOR EXECUTIVEDIRE CTOR (ENGG.) - NBCC
Paw An Kuma R
EXECUTIVE DIRECTOR (ENGG.) - NBCC
Pradeep Shar Ma
CGM (ENGG.) -NBCC
Hrishikesh Kumar
CGM (FINANCE)-NBCC
Pawan Kumar
Executive Director (Engineering); and Mr. Pradeep Sharma - Chief
Key numbers — 40 extracted
Rs.8000 Crore
021-2022 and to declare that we have been able to achieve total consolidated income nearing about Rs.8000 Crores and PBT of around Rs.400 Crores approximately and these are significantly better in operating mar
Rs.400 Crore
have been able to achieve total consolidated income nearing about Rs.8000 Crores and PBT of around Rs.400 Crores approximately and these are significantly better in operating margins and EBITDA margins as compa
50000 Crore
s better than the last year's fourth quarter. Our standalone order book as of now stands at around 50000 Crores and consolidated order book stands around 60000 Crores and we have an ongoing construction work o
60000 Crore
alone order book as of now stands at around 50000 Crores and consolidated order book stands around 60000 Crores and we have an ongoing construction work of around 22000 Crores. Consolidated levels: As far as
22000 Crore
solidated order book stands around 60000 Crores and we have an ongoing construction work of around 22000 Crores. Consolidated levels: As far as the business secured is concerned, standalone business we secure
6000 Crore
lidated levels: As far as the business secured is concerned, standalone business we secured around 6000 Crores and consolidated business we secured around 8000 Crores during last year. Our flagship project nu
8000 Crore
ned, standalone business we secured around 6000 Crores and consolidated business we secured around 8000 Crores during last year. Our flagship project number one is Amrapali project which is going on in full
2400 Crore
ome buyers and further about 1200 flats are ready to be handed over to home buyers and total about 2400 Crores worth of work in this project completed, out of which 1200 Crores worth of work was .completed i
1200 Crore
r to home buyers and total about 2400 Crores worth of work in this project completed, out of which 1200 Crores worth of work was .completed in 2021-2022 and a large amount of labor of around 1200 are working
650
Crore
atna CPSE that is required for construction .we have been able to arrange funds for these projects 650 Crores for six projects from SBI Cap and 1500 Crores for balance projects by a consortium of 7 PSU banks
1500 Crore
we have been able to arrange funds for these projects 650 Crores for six projects from SBI Cap and 1500 Crores for balance projects by a consortium of 7 PSU banks that has been a major achievement for the pro
Rs.160 Crore
ium of 7 PSU banks that has been a major achievement for the project and the funds are now moving Rs.160 Crores has been released as the first tranche of Rs.1500 Crores by 7 consortium banks and SBI CAP has al
Guidance — 20 items
“Our flagship project number one is Amrapali project which is going on in full swing we awarded all 24 projects, all 24 projects the work is going on, two projects have been completed.”
“Another shot in the arm of NBCC in this year that we have been able to start the single largest project of overseas in Maldives social housing project which is valuing Rs.”
“This is the single largest project of overseas in the history of NBCC.”
“Our another flagship project is three GPRA redevelopment projects in which in Nauroji Nagar we have sold 4500 Crores worth of inventory till now and about 50% work on this project has been completed and we have taken up the works in Netaji Nagar and Sarojini Nagar which are going.”
“Yes, in fact there was a project of Ghitorni redevelopment project so that has been closed by government and that is no more there in the order book that is why there is a reduction in the order book.”
“Arid your consolidated order backlog will be.”
“Out of 50000 about 18000 Crores worth of works are going on and remaining will be yet to start projects.”
“Around 8000 Crores we plan to award during the current year.”
“And what will be your guidance for this year in your standalone revenue.”
“Amrapali project you claim that almost like 7500 Cr worth is complete.”
Risks & concerns — 3 flagged
And Sir out of this 50000 Crores order book which are the orders where we see some risk of cancellation or it is very slow moving or some issues are there.
— Pankaj Kumar
Yes, so what I am saying is you have a standalone order backlog of 50000 Crores so which are the orders which are slow moving or we see a risk of cancellation.
— Pankaj Kumar
see any risk of cancellation but the redevelopment projects of 7 GPRA is comparatively low moving because of the lower sale of inventory, lower sale of the projects ofNauroji Nagar.
— PK Gupta
Q&A — 7 exchanges
Q
Thank you for this opportunity. My first question is what is your standalone order backlog as of now.
PK Gupta
Standalone order backlog is around Rs.50000 Crores. Sir, last quarter you said it was 55000 Crores we had execution maybe of not more than 1800 odd Crores and now you say the order is at a backlog is revived up to 50000 Crores is there a cancellation of 3000 Crores. Yes, in fact there was a project of Ghitorni redevelopment project so that has been closed by government and that is no more there in the order book that is why there is a reduction in the order book. So now we can say maybe 27000 Crores to redevelopment and 23000 to cost plus model. Broadly in this order. Page 3 of JO A Navratna C
Q
Good afternoon Sir and thanks for taking my question. My first question is in the year gone by which is FY2022 how much orders did we award to various contractors at the console level.
PK Gupta
At the standalone level it is 3500 Crores and consolidated level it is 5000 Crores. And how much do we expect these numbers to be in FY2023. In FY2023. regarding the work award. Yes. It will be around 8000 Crores. . Parvez Akhtar Qazi: This will be at the console level or standalone. Yes, consolidated level. Parvez Akhtar Qazi: And in terms of consolidated revenue and EBITDA model what is it that we are expecting FY2023. Parvez can you repeat your question. I am saying for consolidated financial what is the kind of revenues and EBITDA margins would be expect in FY2023. Revenue will be around 7
Q
Thank you for the follow-up Sir. One question that I had was in terms of the real estate margins, it seems to be negative what exactly is the nature of the loss here.
PK Gupta
Actually this year one of the projects that is 37D situated at Gurgaon, the inventory has been written down by 100 Crores because of the as per the accounting standard we have to take the cost value or NRV whichever is less there so that NRV market price was getting evaluated and it was lower by 100 Crores so we have made taken impairment of inventory that is why real estate is showing in the loss of 70 Crores is because of that only otherwise all other projects are running in progress only. What is the cumulative land bank that you have how much of it is in the form of inventory. The last qua
Q
Sir question is related to the ongoing construction work so you have 50000 Crores of order backlog at standalone you said on console you are constructing on 22000 Crores of project so what is the figure on the standalone.
PK Gupta
Ongoing works are around standalone basis 18000 balance amount of ongoing contract and from consolidated basis it is around 22000 so that is among this ongoing projects. And Sir out of this 50000 Crores order book which are the orders where we see some risk of cancellation or it is very slow moving or some issues are there. Pardon me we are not able to hear you. Yes, so what I am saying is you have a standalone order backlog of 50000 Crores so which are the orders which are slow moving or we see a risk of cancellation. No, we do not. see any risk of cancellation but the redevelopment projects
Q
Thank you. The next question is from the line of Akhil from Robo Capital. Please go ahead. Good afternoon, I just wanted to clarify one regarding the consolidated revenue guidance that you have given around 7000 Crores so this year you have done more than 7000 Crores itself in consolidated revenue. So I just want to know is the guidance can popup.
RAJENDRA
The 7000 Crores guidance was for standalone. So what would be the consolidated revenue guidance? Consolidated will be 8500 Crores.
Q
Our main stay during the current year will be our Amrapali project and 7 GPRA and we are going in a big way in redevelopment projects because that is where the scope of further business is and we are also targeting some big foreign projects from Ministry of External Affairs obviously funded by Government of India and funded by EXIM Bank if not possible to give you that decades of those projects but we are targeting some bit we get overseas project during the current year. So guidance that has been given is 7000 Crores on standalone basis and 8500 Crores on consolidated basis and hopefully we w
Q
Thank you Mr. Gupta and thank you to the management ofNBCC India.
Opening remarks
Anshuman Ashit
Thank you Rutuja. On behalf oflCICI Securities I would like to thank the management for giving us this opportunity to hostthis call. Today the management ofNBCC India Limited is represented by Mr. PK Gupta - Chairman cum Managing Director; Smt. BK Sokhey Director (Finance); Shri. Rajendra Chaudhary - Senior Executive Director (Engineering); Mr. Pawan Kumar - Executive Director (Engineering); and Mr. Pradeep Sharma - Chief General Manager (Engineering). The call will start with brief remarks from the management after which we will open the line for the Q&A session. Thank you and over to Mr. Gupta for your initial remarks. Thank you Sir.
PK Gupta
Good morning everybody I am happy to announce the results of financial year 2021-2022 and to declare that we have been able to achieve total consolidated income nearing about Rs.8000 Crores and PBT of around Rs.400 Crores approximately and these are significantly better in operating margins and EBITDA margins as compared to the fourth quarter. Fourth quarter is better than the last year's fourth quarter. Our standalone order book as of now stands at around 50000 Crores and consolidated order book stands around 60000 Crores and we have an ongoing construction work of around 22000 Crores. Consolidated levels: As far as the business secured is concerned, standalone business we secured around 6000 Crores and consolidated business we secured around 8000 Crores during last year. Our flagship project number one is Amrapali project which is going on in full swing we awarded all 24 projects, all 24 projects the work is going on, two projects have been completed. Last year we have handed over 10