NBCC India Ltd Q3 FY24 Earnings Conference Call Insights

Key highlights from NBCC India Ltd (NBCC) Q3 FY24 Earnings Concall

• Amrapali Project
  • NBCC contributed INR 1,170 crores to topline from Amrapali project.
  • 16,000 out of 38,000 housing units already completed and handover in process.
  • Another 14,000 units will be ready by December 2024.
  • NBCC and ASPIRE team achieved sale of 6,000 units worth INR 3,500 crores.
  • Pending order book from Amrapali is around INR 2,000 crores.
  • NBCC expects to get additional orders worth INR 8,000-9,000 crores for FAR.
• Redevelopment Projects
  • Secured INR 10,000 crores business in last 9 months vs INR 6,500 crores last year.
  • Nauroji Nagar World Trade Center 93% completed.
  • Netaji Nagar project (INR 1,500 crores) 48% completed.
  • Sarojini Nagar project (INR 4,200 crores) in 8 phases ongoing.
• NBCC Real Estate
  • Dedicated efforts to reach maximum potential buyers.
  • Sold INR 117 crores in 9 months vs INR 37 crores last year.
  • Remaining units to be sold before March 2024 after construction.
• New Project Tenders and Future Opportunities
  • Around INR 6,800 crores worth new projects awarded in current fiscal year.
  • Projects will start soon and increase turnover.
  • Exploring affordable housing opportunities with government agencies.
  • Examining feasibility of land monetization projects, including PSU land parcels.
  • Eyeing stressed real estate projects leveraging Amrapali experience.
  • Focused on overseas markets like Africa, Maldives, Mauritius and Middle East.
  • Diversifying into metro railways projects.
• Revenue Guidance
  • For FY24, NBCC expects to achieve revenue between INR 10,500 – 11,000 crores.
  • For FY25, the revenue guidance is around INR 13,000 crores.
  • NBCC had earlier guided for INR 25,000 crores revenue over the next 5 years.
  • Lighting and UPVC windows/doors doubling and in expansion mode.
• Order Inflows
  • Order inflows for 9M FY24 stood at INR 10,000 crores.
  • Expecting another INR 10,000 crores of order inflows in Q4 FY24.
  • For FY25, targeting order inflows of INR 20,000 crores on consolidated basis.
  • On standalone basis, FY25 order inflow target is INR 15,000 – 16,000 crores.
• Order Book
  • Consolidated order book as of 9M FY24 is INR 55,300 crores.
  • Standalone order book is INR 45,230 crores.
  • Out of total order book, projects worth INR 21,000 crores have already been awarded.
• Real Estate Project Economics
  • For Jaipur land parcels, expected sales realization is INR 400-500 cr.
  • For Coimbatore land parcel, expected sales is around INR 500 crores.
  • NBCC expects profit margins of 25-30% on these real estate projects.
• Diversification
  • NBCC has already secured a Kochi Water Metro project.
  • Actively pursuing opportunities in metro rail projects across India.
  • Recently bagged orders worth INR 300-400 cr in the steel sector.
• International Expansion
  • Current international order book is around INR 1,500-2,000 crores.
  • Expanding presence in Gulf region with new office in Jeddah, Saudi Arabia in addition to Dubai.
  • Targeting housing projects in Saudi Arabia, Bahrain, Sharjah etc.
  • Pursuing hospital project in Guinea, Conakry and exploring opportunities in other African nations.
• Revenue Growth Roadmap
  • NBCC targets INR 25,000 cr revenue by FY28, with 40-45% contribution from redevelopment projects.
  • Management sees limited risks in achieving this target as most projects are on PMC basis.
  • Key challenges expected are related to approvals and execution rather than business risks..
• Outlook
  • NBCC expects margin expansion in the long run as expenditure is largely fixed.
  • Targets 8-9% EBITDA margin by FY28 once revenue crosses INR 5,500 cr breakeven level.
  • Current annual fixed cost is around INR 300 crores.
  • For FY25, NBCC targets INR 200-250 crores of real estate sales.