NBCC India Ltd Q1 FY23 Earnings Conference Call Insights

Key highlights from NBCC India Ltd (NBCC) Q1 FY23 Earnings Concall

Q&A Highlights:

• Rohit Natarajan with Antique Stock asked that on the 3.5% reported EBITDA margin, if there is any provision write-back or any fresh provision made. P. K. Gupta MD said write-back is INR4 crores, which is reversal of ECL provision.

• Rohit Natarajan with Antique Stock enquired about other income and how much of it is accounting income and the cash realization against it in 1Q23. P. K. Gupta MD answered that the other income consists of INR46 crores, out of which the larger part is interest received from FDR and interest on seed money.

• Anshuman Ashit from ICICI Securities asked about the company’s cash in hand at the end of June. Reshma Dudani, ED replied that on a standalone basis, NBCC is having INR2,100 crore in cash and bank balances.

• Anshuman Ashit from ICICI Securities also enquired about the revenue and margin expectation for FY23 on a standalone and consolidated level. B. K. Sokhey Director Finance replied that the EBITDA portion will remain the same at 3.56% in 1Q23, and PBT margin will be 6.89% before special items. NBCC is not expecting any further loss on 37 D so PBT margin will remain around 7% and EBITDA around 3.5-4% in 2Q23 on standalone basis.

• Anshuman Ashit from ICICI Securities asked if NBCC has any projects outside of India currently that’s being executed. P. K. Gupta MD answered that the company is executing in the Maldives, while Dubai has been completed. Also a project worth $13 million is going to happen in Seychelles and there’s almost a final project for Burundi.

• Meet Parikh from Anand Rathi enquired about Amrapali, how many flats have been handed over and how many NBCC intend to hand over in FY23. P. K. Gupta MD answered that the company has handed over 1,600 flats till now. And total 3,400 flats have been completed. 8,500 flats the company is planning to complete by Oct. By end of FY23, NBCC should be able to hand over 12,000 flats.

• Meet Parikh from Anand Rathi asked about the standalone order book at the end of 1Q23 and the consolidated order book. P. K. Gupta MD answered it’s INR46,500 crore standalone and consolidated is INR56,000 crore.