NBCC India Ltd Q2 FY23 Earnings Conference Call Insights

Key highlights from NBCC India Ltd (NBCC) Q2 FY23 Earnings Concall

 Q&A Highlights:

• [00:11:23] Rohit Natarajan of Antique Stock Broking asked about the NBCC Plaza Pushpavihar project and its payment related issue. B.K. Sokhey Director of Finance said that there was a demand from South Delhi Municipal Corp. for the extra FIR that NBCC wanted to take. But there is a dispute because L&DO of the Ministry of Housing affairs asked NBCC to pay the amount to L&DO. Now the issue is resolved.

• [00:12:22] Rohit Natarajan of Antique Stock Broking enquired about any update on the Naya Raipur development where additional demand has been raised. B.K. Sokhey Director of Finance replied that in Nayapur lean [deed] is pending. NBCC is pursuing it harder and is confident that it will be done. Also NBCC is not hopeful of any further impairment in these inventories.

• [00:13:21] Rohit Natarajan of Antique Stock Broking enquired about revenue outlook for FY23 and FY24. P.K. Gupta MD replied that NBCC is expecting consolidated revenue of more than INR9,000 crores for FY23. Of this, standalone is INR7,000 crore and around INR2,000 from subsidiaries. For FY24, NBCC is keeping a revenue target of INR10,000 crores.

• [00:15:16] Parvez Qazi from Edelweiss Securities enquired about order book of INR55,000 crore at the consolidated level and the spread between PMC and redevelopment work. P.K. Gupta MD answered that out of the INR55,000 crores, INR45,000 crore is of NBCC and INR10,000 crore of subsidiary. And of the INR45,000 crore, about INR23,000 is of redevelopment and INR22,000 crore of PMC. For subsidiary, it’s 100% PMC.

• [00:16:23] Parvez Qazi from Edelweiss Securities asked about the EBITDA margin outlook for FY23. B.K. Sokhey Director of Finance answered that the company is expecting to achieve the same levels of EBITDA margin of 2Q23 for FY23 also.

• [00:16:47] Parvez Qazi from Edelweiss Securities asked about the seed money till date and the interest being booked and received. B.K. Sokhey Director of Finance replied that with respect to the seven re-development project, NBCC invested INR908 crore and interest accrued on the same is INR242 crores as of today.

• [00:17:50] Rohit Natarajan of Antique Stock Broking asked about the realization till date in Amrapali project and target for FY24. P.K. Gupta MD replied that total work done in Amrapali till Sept. 2022 is INR400 crore and INR4,700 crore is the remaining work. In FY23, NBCC has done work worth INR717 crore and plan to do work worth around INR1,000 crores in 2Q23 and 3Q23. Balance work is expected to be completed in FY24.

• [00:22:26] Anshuman Ashit from ICICI Securities asked about the quantum of order cancellation during 3Q23. P.K. Gupta MD answered that there were no cancellation in 2Q23.

• [00:25:39] Shubhankar Ojha of SKS Capital enquired that of the cash balance of INR5,058 crores, how much is the company’s own cash. B.K. Sokhey Director of Finance clarified that INR5,200 crore cash balance is on a consolidated basis. Out of this, own funds are approx. INR800 crores.

• [00:29:37] Pankaj Kumar from Kotak Securities  asked that on a standalone basis, what kind of project awarding NBCC is expecting for FY23 and FY24 on the PMC side. P.K. Gupta MD said NBCC is expecting new business from Orissa, Delhi and a smart city project in [Pondicherry].