NBCC (India) Limited — Call Transcript 2021

Feb 19, 2021

Encl: As above

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“NBCC India Limited

Q3 FY2021 Earnings Conference Call”

February 16, 2021

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MANAGEMENT: MR. P.K. GUPTA – CHAIRMAN & MANAGING DIRECTOR

– NBCC INDIA LIMITED

MR. RAJENDRA CHAUDHARI – DIRECTOR COMMERCIAL – NBCC INDIA LIMITED MR. NEELESH KUMAR SHAH – DIRECTOR

PROJECTS - NBCC INDIA LIMITED

MRS. B.K. SOKHEY – DIRECTOR FINANCE – NBCC INDIA LIMITED

MR. PAWAN KUMAR – EXECUTIVE DIRECTOR – ENGINEERING – NBCC INDIA LIMITED MR. BALKISHA SINGLA – INVESTOR RELATIONS - NBCC INDIA LIMITED

ANALYST: MR. ALOK DEORA – YES SECURITIES

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Moderator :

Ladies and gentlemen, good day and welcome to NBCC India Limited Q3 FY2021 Earnings Conference Call hosted by Yes Securities. As a reminder, all participant lines will be in the listen-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 „*‟ then „0‟ on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Alok Deora from Yes Securities. Thank you and over to you Sir!

Alok Deora :

Good afternoon everyone. I welcome you all to the Q3 FY2021 Earnings Conference Call of NBCC India Limited. We have with us today Mr. P.K. Gupta, Chairman and Managing Director, Mr. Rajendra Chaudhari, Director (Commercial), Mr. Neelesh Kumar Shah, Director (Projects), Mrs. B.K. Sokhey, Director (Finance), Mr. Pawan Kumar, Executive Director (Engineering). We would start the call with opening remarks from the management followed by Q&A session. Thank you and over to you Sir!

P.K. Gupta:

Good afternoon to all. Just my opening remarks in brief. This quarter, we have been able to get out of Corona largely and we have registered a total 20% increase in operational income on year-to-year basis for Q3. During the year 20219 in the Q3 the total operations income was Rs.1265 Crores. This year we have been able to register the income of Rs.1508 Crores, which makes an increase of about 20% in total operations income.

Regarding PAT, the jump is even much higher. In 2019, Q3 our PAT was Rs.35 Crores and in this year in Q3, the PAT is around Rs.82 Crores registering an increase of 134%. This is the standalone results.

As far as the consolidated results are concerned, total operations income has increased by 9% from Rs.1930 Crores in 2019 to a level of Rs.2103 Crores in 2020 year-to-year for Q3. Consolidated results of PAT have increased by 75%. For 2019, it was Rs.55 Crores and for this year it is Rs.97 Crores. So the quarter has been quite good.

In this year till now, we have awarded the contracts of Rs.9600 Crores and we plan to add another Rs.2000 Crores to Rs.3000 Crores worth of contracts in the remaining year and we hope that Q4 will be better than Q3.Now, you can ask the questions.

Moderator :

Thank you very much. We will now begin the question and answer session. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rajeev Rupani an Individual Investor. Please go ahead.

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Rajeev Rupani:	Sir my first question is regarding the two projects East Kidwai Nagar Project and Nauroji
	Nagar Project, so could you guide us what is the revenue potential from these two projects
	separately and when do they begin?
Rajendra Chaudhari:	In East Kidwai Nagar, we have completed the construction and Nauroji Nagar we are doing
	the construction and it is in full swing. There are 2000 labors and we expect to complete this
	by July 2022.
Rajeev Rupani:	So what is the total revenue potential from these two projects?
Rajendra Chaudhari:	Revenue potential form Nauroji Nagar will be around Rs.1700 Crores.
Rajeev Rupani:	East Kidwai?
P.K. Gupta:	East Kidwai Nagar almost it is complete. No major revenues are expected in East Kidwai
	Nagar.
Rajeev Rupani:	My second question is regarding the land bank. I suppose we have around 58 acres of land
	and last time, so where exactly is the land located and what is the value of this land bank
	and when do we start any work on this land bank?
Rajendra Chaudhari:	Land bank is at different places like we have Alwar, Jaipur, Faridabad, Ghaziabad, Raipur,
	and Coimbatore.
Rajeev Rupani:	So the 58 acres is in all these so many places?
Rajendra Chaudhari:	Yes.
Rajeev Rupani:	When does any development works start on this land bank could you guide us?
Rajendra Chaudhari:	Yes. Actually real estate has just started picking up, so we are planning wherever there will
	be profit, we will start those projects.
Rajeev Rupani:	Could you let me know what the total order book as of now is and how much is the PNC
	and how much is redevelopment?
P.K. Gupta:	The total order book is Rs.62000 Crores, PMC is Rs.27000 Crores and redevelopment is
	Rs.35000 Crores.
Rajeev Rupani:	Thank you.

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Moderator:	Thank you. The next question is from the line of Amit Dalal from Tata Investment
	Corporation. Please go ahead.
Amit Dalal:	I have three questions. One question is regarding the PMC business. In the middle whether
	it was a Lucknow Railway Station or it was any other project from the government it was
	linked to realization of real estate allocation, which came from that? So now out of this
	Rs.27000 Crores of PMC orders, which is your bread and butter how much of it is pure
	PMC revenues, which will come to you from your customers and there is no linkage at all
	of real estate sales from that? That is my first question. The second question is regarding the
	JP Associates transaction. How far is that and which is that builder who went under? You
	all have taken over the construction and completion of those projects? How far has that
	reached? The third question I have how much inventory of real estate do you carry now,
	which has been completed and which is more than six months old? How many Crores?
Rajendra Chaudhari:	Your first question was how much in the PMC segment the contribution of redevelopment
	of Lucknow Railway Station how much all such type of works contributes.
Amit Dalal:	Like what is the breakup between the two?
Rajendra Chaudhari:	Now are doing only railway station that is Lucknow Railway Station. Otherwise all is only
	PMC.
Amit Dalal:	Pure PMC where the revenue comes straight from the customer?
Rajendra Chaudhari:	Yes.
Amit Dalal:	That means your debtors are going to be the customers nothing else correct for the billing
	that you do?
Rajendra Chaudhari:	Pardon me.
Amit Dalal:	Suppose you are building something for the government in any department, whichever it
	may be, I am saying that therefore now the billing is going straight to whichever department
	it is and the department owes you money for it? There is no linkage to realization of sales or
	anything like that?
Rajendra Chaudhari:	Yes in PMC project it is like that.
Amit Dalal:	PMC project, it will be like that okay. Now the second is regarding the JP Associates,
	whichever SPVs you all have taken over from the court is that transaction culminated now?

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Rajendra Chaudhari:	As far as execution of JP is concerned, the order is reserved in the Supreme Court and it
	may come anytime. After that only the taking over process will start.
Amit Dalal:	So that is still pending then?
Rajendra Chaudhari:	Yes.
Amit Dalal:	So this is one more question I am adding. The PMC revenues, which you have done this
	quarter is approximately what percentage of the total and do you think that this can grow
	substantially in the year FY2021-FY2022?
Rajendra Chaudhari:	See the work has picked up and in the opening remarks CMD Sir has already told that our
	performance is better than last years quarter and with this pace yes we will be touching
	around Rs.5500 Crores.
Amit Dalal:	For FY2021 and out of that how much will be redevelopment? How much will be PMC?
Rajendra Chaudhari:	Most of the turnover will be from PMC only. As of now redevelopment project is only
	Nauroji Nagar revenue will come and Gomti Nagar Railway Station that revenue will come.
	The balance will be from PMC only.
Amit Dalal:	The next year do you estimate a large investment going into real estate development, today
	you are inventory must be I think Rs.300 Crores do you think that value will shoot up
	substantially next year?
Rajendra Chaudhari:	You see we have inventory worth Rs.400 Crores.
Amit Dalal:	Rs.400 Crores sorry.
P.K. Gupta:	But at the same time, you see the supply in NCR, we have the inventory most of the
	inventory in Gurgaon and there is heavy supplies, so we will not think that the rate is
	substantially pick up.
Amit Dalal:	Not the rate? I am saying will your investment in inventory go up next year?
P.K. Gupta:	Not much. It may remain around Rs.400 Crores only. We will be selling also and we will be
	adding in that proportion only.
Amit Dalal:	So net-net your investment in the inventory will be remain the same, so I can expect next
	year your net debt position should improve? You should have more net cash at the end of
	FY2021 or will the debt become lesser?

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B.K. Sokhey:	You are talking about the overall debtors or particularly related to any segment?
Amit Dalal:	No I am saying that there are two parts? One is your debtor positions, which is coming from
	PMC business so will you be a free cash flow company next year or will be there be some
	investment and therefore you will not be a free cash flow company that is what my
	question?
B.K. Sokhey:	We are having the free cash. We are getting the deposits from the clients and then we are
	executing the projects, where certainly there is old debt. You have also heard from this time
	results that there is no major expected credit loss. It is very nominal. This shows that we
	have been given to realize our old debts also to a great extent, which has helped the
	company including the profitability. So the same tempo will remain and we are hopeful we
	will get the realization from our PMC business.
Moderator:	Thank you. This is the operator. Mr. Dalal may we request that you return to the question
	queue for follow-up questions as there are several participants wait for their turn. The next
	question is from the line of Viral Shah from Prabhudas Lilladher. Please go ahead.
Viral Shah:	Good afternoon everyone. Sir there is couple of questions. Sir in terms of sales and in terms
	of number of units sold at Nauroji Nagar what will be the number will be post COVID if
	you could say?
Rajendra Chaudhari:	The total area is of Rs.2750 Crores and in the COVID we have sold around Rs.736 Crores.
Viral Shah:	Okay so the total is Rs.2750 Crores sold till date right?
Rajendra Chaudhari:	Yes.
Viral Shah:	Sir this number has been the same for the one to one and a half years I think? So has there
	been a cancellation or there is disconnect in Nauroji Nagar?
Rajendra Chaudhari:	At present, there is no cancellation, but yes the pace are going at a very slow pace, but we
	are now getting into aggressive marketing so that we are able to scale it.
Rajendra Chaudhari:	Now since we have past corona, it is expected that the sale of commercial property will
	pick up because during Corona that sale of commercial properties was very slow and this
	Rs.736 Crores worth of property we have sold in the last six to eight months only.
Viral Shah:	I agree to you Sir, but when you look at this number and when we look at last one and a half
	year or maybe the past two years, the number was at Rs.3000 Crores to Rs.3500 Crores and
	that has been constant and if we have done Rs.700 Crores of roughly last sales in the last six

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months that means we were at only Rs.2000 Crores right? So is there is a disconnect in understanding or the guidance given by the management what is it all about?

P.K. Gupta: We were at Rs.2000 Crores and this year we have sold Rs.733 Crores, so total is around Rs.2754 Crores that is the correct figure as of now and we are in touch with a number of clients for sale and we expect many more projects to be sold in this financial year and then we have started very aggressive marketing also after the Corona is over and we expect the sales to pick up.

Viral Shah: Secondly in terms of Netaji Nagar Sir where are we in terms of construction because we have ordered a project as well in and around Rs.1000 Crores if I recollect, so where are we in terms of construction?

Rajendra Chaudhari: Netaji Nagar yes after getting the approvals of the Forest Department, we have taken up the activities to start the work and there is one more tender which is currently lies for GPOA, Government Pool Office Accommodation. Viral Shah: Lastly, Sir when we look at our order book of around Rs.62000 Crores out of the order book what is the percentage of contracts, which have been awarded? In the opening remarks Sir mentioned that Rs.9600 Crores of projects have been awarded during the year and there is a plan of around Rs.2000 Crores to Rs.3000 Crores of projects additional to be awarded? So out of the order book of around Rs.62000 Crores what is the percentage of order book, which has been awarded to the EPC contract Sir and out of that what will be the PMC redevelopment?

Neelesh Kumar Shah: Work awarded is around Rs.9700 Crores and work to be awarded is around Rs.3000 Crores and we have a running project of Rs.18500 Crores. Neelesh Kumar Shah: Plus Rs.3000 Crores, which will be awarded in this financial year? Viral Shah: So roughly Rs.32000 Crores of order book has been awarded roughly?

Neelesh Kumar Shah: Yes. Substantial portion is of redevelopment and it has got a long basis lots of approvals are required. Viral Shah: So basically Sir out of this Rs.31,000 Crores what will be the percentage of book, which is redevelopment and PNC? Neelesh Kumar Shah: Redevelopment is around Rs.3000 Crores. The rest is PMC.

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Viral Shah:	Sir you mean to refer to Rs.9600 Crores right?
P.K. Gupta:	Any question on this?
Viral Shah:	So basically Sir said that this Rs.3000 Crores so Rs.3000 Crores is of Rs.9600 Crores or the
	entire Rs.31000 Crores? Sir you have an order book of Rs.31000 Crores?
P.K. Gupta:	Rs.3000 Crores is not part of Rs.9600 Crores because this we have awarded this year and
	these two awards, which I am talking about is Nauroji Nagar and Sarojini Nagar are part of
	last financial year. One contract of redevelopment has been awarded in this year that is of
	the AIIMS that is posting around Rs.250 Crores. That project contract of redevelopment
	awarded earlier. One is of Nauroji Nagar that is going on. Gomti Nagar was awarded much
	earlier and one contract of Sarojini Nagar around Rs.1000 Crores. That was awarded earlier.
	The work is about to start totally. The work has started in that.
Viral Shah:	Fair enough Sir. Sir last question if I may. Sir what is the update on our Amrapalli project
	Sir in terms of construction if the work has started there or still there be time?
P.K. Gupta:	Amrapalli, we were awarded the 24 contracts out of which two projects have been
	completed. Work is going on in 22 projects. In all 22 projects, the construction work is on.
Viral Shah:	Sir for the two projects we have handed over the houses or still no, which have completed
	now?
P.K. Gupta:	Which project you are talking about.
Viral Shah:	Amrapalli only, two projects where we have completed the work? Have we given the hand
	over to the home buyers or not?
P.K. Gupta:	We have given hand over to the residents.
Viral Shah:	Thank you so much and all the best for the future.
Moderator:	Thank you. The next question is from the line of Rohit an Individual Investor. Please go
	ahead.
Rohit:	Sir we have three subsidiaries, one is HSCL and another one is HSCC can you please tell us
	about their revenues and the profit we incurred in last quarter?

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P.K. Gupta:	Regarding the HSCC, Q3 the total turnover was Rs.419 Crores and PAT was Rs.7.85
	Crores. HSCL the total turnover in Q3 was Rs.106 Crores and PAT was Rs.7.3 Crores. We
	have another subsidiary by the name NSL NBCC Services Limited. For that the turnover
	was Rs.28 Crores and PAT was Rs.4.19 Crores.
Rohit:	Sir what is the order book of HSCC, HSCL and NSL, can you tell us?
Rajendra Chaudhari:	HSCL is Rs.4500 Crores and HSCC is around 5000 Crores.
Moderator:	Thank you. The next question is from the line of Dhananjay Mishra from Sunidhi Securities
	& Finance. Please go ahead.
Dhananjay Mishra:	What are the prospects order we are expecting for next year and what kind of contacting we
	are targeting for next year, if you could give some sense in terms of railways and Dharavi
	projects and all that?
P.K. Gupta:	The orders are going to next year will be around Rs.8000 Crores.
P.K. Gupta:	We had planned for Rs.8000 Crores that is as per MoU target, so we plan to achieve
	business upwards of Rs.8000 Crores.
Dhananjay Mishra:	And what was the order inflow in this year till date?
P.K. Gupta:	Till now it is around Rs.3000 Crores only, but we are expecting more orders in the last
	quarter.
Dhananjay Mishra:	Have we removed many orders from the order book, because we used to have Rs.80000
	Crores worth of order book and now you have 62000 Crores of order book?
P.K. Gupta:	Some orders did not fructify that I have been removed from the order book.
Dhananjay Mishra:	Which order Sir?
P.K. Gupta:	Like Twin Tower Guwahati, the project has been held by Government of Guwahati, they
	have gone in a different mode that has been taken out of the order book.
Dhananjay Mishra:	Lastly you said Sir, this year target is 6000 in terms of revenue, but we have already
	achieved the Rs.3000 Crores and even the construction activity has improved so we should
	do much better in Q4, so I thought we should be doing about Rs.3000 Crores kind of
	revenue in Q4, but you are guiding Rs.5500 Crores for the whole year, so what is the
	reason?

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P.K. Gupta:	Around Rs.2500 Crores we are planning in Q4.
Dhananjay Mishra:	And consolidated this is right?
P.K. Gupta:	Standalone.
Dhananjay Mishra:	Standalone you are saying, okay Sir. That is all from my side. Thank you.
Moderator:	Thank you. The next question is from the line of Pankaj Kumar from Kotak Securities.
	Please go ahead.
Pankaj Kumar:	Good afternoon. Thanks for taking my question Sir. My question is on overall the next year
	outlook, so what kind of contracts that we are targeting to award in next year, so this year
	we are targeting roughly around Rs.12000 Crores, so next year what is the target?
Rajendra Chaudhari:	We will try to award the same amount of contracts, Rs.10000 Crores to Rs.12000 Crores in
	the next financial year as well and large number of that will be redevelopment projects of 7
	GPRA in Sarojini Nagar and Netaji Nagar, by that time approvals will come and we will get
	money from the sale of Nauroji Nagar and other overdue, so we plan to have had Rs.10000
	Crores to Rs.12000 Crores in next financial year also.
Pankaj Kumar:	As you stated that large part of your awards will come from the redevelopment projects
	particularly to the government colonies in Delhi, so how is the sales outlook in terms of the
	real estate monetization outlook that you have, so what kind of sales that you intent to
	generate out of these three projects next year, real estate sales?
Rajendra Chaudhari:	Right now Nauroji Nagar is in sale and sale consideration is around Rs.12000 Crores and so
	far as we have awarded only Rs.3000 Crores and some few works by CPWD, so we still
	have buffer of around Rs.8000 Crores even if we award work of Rs.8000 Crores, we will be
	able to meet the construction cost from the sale consideration of Nauroji Nagar and we are
	planning to sale next year some part of Sarojini Nagar also.
Pankaj Kumar:	Sir, now these large projects have started moving, so is there any change in outlook on
	margins, so we are going to see some improvement in the margins, any guidance on that?
Neelesh Kumar Shah:	Definitely to some extent marginal may increase in the next financial year because as you
	rightly said we will be starting new book projects actually ideally the projects are
	consolidated.
Pankaj Kumar:	Any specific number you would like to?

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Neelesh Kumar Shah: Margin will definitely increase because we are going to start new projects are higher values,

that margin will be on the higher side, so there are two or three projects we are starting that is on the basis of TMT, housing projects and recently we have started some new projects of more than 500 Crores to 600 Crores so definitely the margin is likely to improve significantly. Pankaj Kumar : Thanks. Moderator : Thank you. The next question is from the line of Sunil Kumar Bansal, Individual Investor. Please go ahead. Sunil Kumar Bansal : Good afternoon Sir. As an investor, I just wanted to know that this company has, three years back, had a valuation of Rs.20000 Crores, currently it is less than Rs.6000 Crores, so what is the management is doing, because investor confident has taken or are you having any plan to buyback of shares, what are actions you are planning to create a confidence in the investors committee?

P.K. Gupta: We do not have any plan for buyback of share, but we are focusing on execution and reduction of our internal expenditure and that will increase the margin. So our focus now is on execution. Sunil Kumar Bansal : Second question is, there is another company which is under the same Ministry, Ministry of Housing Properties, they recently announced Rs.90000 Crores development, so are we are in talk with under the same head with the company? P.K. Gupta: It is under the same ministry, but it is a different company. Sunil Kumar Bansal : Any discussions going on with the NBCC can take up these projects? P.K. Gupta: We are in talk with them we may take up some of these projects. Sunil Kumar Bansal : Thank you Sir. Moderator : Thank you. The next question is from the line of Rajeev Rupani, Individual Investor. Please go ahead. Rajeev Rupani : I have a follow-up question. What is the revenue guidance for FY2022 and FY2023 your guidance please? P.K. Gupta: Next year we plan to do around Rs.8000 Crores and this will increase by another 10%, 12% in next year, it will be around Rs.9000 Crores that is our planning.

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Rajeev Rupani : I have a follow-up question on Amrapali, what is the total revenue to be generated from Amrapali project? P.K. Gupta: Rs.8000 Crores. Rajeev Rupani : Thank you. Moderator : Thank you. The next question is from the line of Saurabh, Individual Investor. Please go ahead. Saurabh : Thank you. Good afternoon everybody. I also had a specific question, we have subsidiary HSCC which is in the healthcare segment and with the recent pandemic lot of spending on healthcare, are we leveraging HSCC capability to aggressively ramp up the order book on the healthcare sector? P.K. Gupta: Definitely, we have recently received an order of Rs.1800 Crores from Rajasthan government, our hospital subsidiary HSCC and since there is a lot of emphasis on health in the current budget, we plan to leverage the business in this sector.

Saurabh : Thank you. Next question is about there are reports for housing project which NBCC has got in Maldives, but we have not seen any exchange filing or any statement from the company on this, so what is the status on that?

Pradeep Sharma: Regarding this margin, it is a special housing project which is to be done under financing from EXIM Bank through buyers credit, so Government of Maldives and EXIM bank are not of the EXIM Bank is yet to be finalized as soon as we finalized then this agreement will be operational, we have already signed the EPC agreement with them, but it is actually subject to the timing agreement between FDP that is Government of Maldives and EXIM Bank, this will take time by April or first week of May it will be finalized.

Saurabh : My last question is, can you tell us what specific steps you are taking to speed up the execution, because that is the long overhead order stock?

P.K. Gupta:

I will tell, number one is that we are awarding very large value contracts, so that we get better contractors and lesser supervision the work can be executed in a faster manner, so all our contracts awarded, in one last year, they are very high value contracts and next year also we plan to award high value contracts on EPC basis. So EPC basis means that design will also be done by the contractor and work will not stop on any account., so this is one step that we are taking and second is that we are pursuing our approvals aggressively, this year there was some delay in the execution due to Corona for quite four, five months, after that it has picked up, so we plan that next year will be very good as far as execution is concerned.

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Saurabh : Any plans on PSU lending development or development of others also like Amrapalli? P.K. Gupta: Whenever government gives us the opportunity like JP we are expecting to come very soon and further also whenever government gives an opportunity, we have given our expression of interest probably orally and/or in writing wherever required, so like project of Unitech or any other projects, whenever government and supreme court want us will be ready to take up this further. Saurabh : For investors, we would be look invoking towards management to aggressively stretch for these rather than waiting for government to receive these things, because the stock has taken big hit just for the last three years, so if you can be more aggressive on your approach I think that will give a lot of confidence to the street. P.K. Gupta: Now, we are pursuing it aggressively. Saurabh : Thank you Sir. Moderator : Thank you. The next question is from the line of Vikas Srivastava from RBC Financial Services. Please go ahead. Vikas Srivastava : I had a couple of questions. First was on your real estate inventory with the real estate prices having picked up, what is the real estate sales you are expecting in this year and the coming years? That is one question. The second question I heard that JP is expected I have joined the call late, you said JP is expected very soon, we are talking about the Jaiprakash Infrastructure judgement in the Supreme Court which has been reserved, is that what you are referring to? P Rajendra Chaudhari: As far as real estate sale for the next financial year is concerned, we are expecting Rs.100 Crores sales next year. Vikas Srivastava : In terms of margins what kind of volume should we expect on the scale, I believe the cost of acquisition is quite minimal on this, is my understanding right? Rajendra Chaudhari: We work with an IRR of 15%, we are expecting 10% to 15% profit out of that. Vikas Srivastava : Okay. Rajendra Chaudhari: What was the JP question? Vikas Srivastava : JP question is that JP you are expecting very soon, my question was, are you referring to the Supreme Court judgement which has been reserved?

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Rajendra Chaudhari:	Exactly.
Vikas Srivastava:	Okay, because that judgement was reserved in September of 2020 right?
Rajendra Chaudhari:	Right.
Vikas Srivastava:	It has been about four, five months. Has there been any resolution or any further discussion
	in terms of the amount owing to Jaiprakash Associates, why in your view has there been
	when I know it is subjudice, has there been any further discussions on this post and when
	you say how soon are you expecting this judgement to come?
Rajendra Chaudhari:	The things are going in Supreme Court and we cannot know whether discussions are going
	well or not. We do not get into of security of finding what is happening, because issue is in
	Supreme Court and wait for results..
Vikas Srivastava:	No, my question that sometimes there is on the amount payables, there were certain issue
	between what is payable to Jaiprakash Associates out of that that was one of your pre-
	condition that all this Rs.750 Crores and interest.
P.K. Gupta:	I will tell you everything was explained during the last hearing about Rs.750 Crores or
	whatever, now the bench will decide.
Vikas Srivastava:	That of course. My last question was the sales besides your project development if I
	remember right, many years back when we were selling World Trade Center sector, there
	was a commission income which was growing to NBCC on the sales of the World Trade
	Center in Nauroji Nagar, if you could throw some light into what percentage it was, what
	kind of sales are you expecting in the next year on the World Trade Center inventory and
	what is your average commission rate on that World Trade Center sales?
P.K. Gupta:	We have 1% margin on marketing, the margin on execution and next year we hope that full
	Nauroji Nagar will be sold that means we will get revenue of around 1% on Rs.9000
	Crores. That will give income to the ministry not our revenue, but we will get a 1% margin
	on that.
Moderator:	Thank you. The next question is from the line of Akshay Patil, Individual Investor. Please
	go ahead.
Akshay Patil:	Good afternoon. The Ex-CMD of NBCC has promised the CAGR out of 30%, Dr. Anoop
	Kumar Mittal, but it has been some past three years, I am stuck on very high prices and still
	not exiting the stop quoting that some days will top up, so when we can see that kind of
	levels or that kind of execution even there was a news that cabinet has asked for the plan to
	submit that how will complete the 80000 order book, so is that correct did cabinet has

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asked, you something regarding such things and what are your projects for the next five years and every year how much you are going to increase your execution rate, what percent of our order book we are going to execute for next five years? That is it. Thank you.

Neelesh Kumar Shah: There are so many reasons specifically which Ex-CMD which was away, because as you are aware, there are so many reasons, our major projects like redevelopment of Nauroji Nagar, Netaji Nagar, and Sarojini Nagar, these project could not start due to court issues an. So that is the major setback actually, we could not get 30% CAGR actually. Second reason nobody else predicted the COVID-19 that is also impacted our overall turnover. Yes as you rightly said, things have improved and almost labour strength has recovered absolutely 90% of our total manpower, that is because of COVID and now you must have seen that Nauroji Nagar for the last three months has resumed and all statutory approvals in place. On work has started like this in all the other projects and moreover it will add revenue though. In addition to the PMC also we are going to start new projects which would give significant turnover, Amrapali also we have awarded worth was Rs.8000 Crores, so all these projects are now in the verge of strat, some projects have begun and some projects are likely to start coming soon. I think 15% to 20% you can expect in the two years 10% to 20% and we have been increasing more than that. It needs to be seen.

Akshay Patil :

I have one follow-up question. I want to know that how the Chinese companies are actually promoted by the Chinese government for the various infrastructures in this foreign land for building up Hambantota Port and many such things, so is there any plan of Indian government to promote NBCC has such company from the Indian side, which will execute the huge infrastructure project in the foreign land, so that they can compete with the Chinese company, any information regarding that?

P.K. Gupta:

As far as the building sector is concerned, NBCC is already on the forefront, in constructing the buildings in the foreign countries, we already have the project in Mauritius, Maldives Nigeria that we have completed recently, Dubai we are doing at World Expo Center, so we are nominated company by Government of India. As far as the competition with Chinese company is concerned, there are no bars from the government to compete with Chinese company. As and when opportunities are there, we are taking up the work even in competition and on nomination basis. So we are already a nominated company by Government of India in building sector and exclusively in building sector in fact we are the only company who works primarily in building sector only and is known for construction of building in India as well as in foreign country.

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Moderator:	Thank you. The next question is from the line of Rajeev Rupani, Individual Investor. Please
	go ahead.
Rajeev Rupani:	I have a follow-up question on Hemisphere properties in earlier participant asked whether
	we are in talks with them for development, so I have a follow-up question on that. Sir,
	Hemisphere Properties own properties in Delhi, Pune, Chennai and Kolkata, so total are
	about 740 acres, so we are in talks for any particular city or across the board number one.
	Number two, we also heard that Tata Housing or Tata Construction will develop his land, so
	could you please guide on this?
P.K. Gupta:	All these cities, there are very important land parcels and we can take up the project in any
	of the cities, so we do not have any limitation and since the amount of land is quite high, so
	there is scope available for NBCC and for private sector builders also, so we are expecting
	our share of business in this project. But as far as cities are concerned, we are ready to work
	in any city.
Rajeev Rupani:	Basically both NBCC and Tata will do the projects?
P.K. Gupta:	No, individually. I think private sector builders, how will be roped in that will be through
	competitive process, but we may get some work on nomination.
Rajeev Rupani:	And will it be city wise or any in let us say in Delhi both can do or Delhi NBCC will do
	another city, Tata will do, just to guide us please?
P.K. Gupta:	There is no such thing decided.
Rajeev Rupani:	Okay and by when can we get an update on this, I mean when would be the development
	start, any idea?
P.K. Gupta:	The work has just been taken up by the Ministry, so it is difficult to say, but it could be near
	future. Due diligence has been done and it will come in the near future.
Rajeev Rupani:	Thank you so much.
Moderator:	Thank you. The next question is from the line of Saurabh, Individual Investor. Please go
	ahead.
Saurabh:	Once you get the JP awarded, do you really plan to delist the company or would you like to
	continue listing the company as have been requested by a lot of minority shareholder?

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B.K. Sokhey : We have already submitted in our resolution plan about the delisting of the company once we take it over. Saurabh : So there is no reconsideration about keeping the company listed and unlocking the value on that? B.K. Sokhey : Currently there is no reconsideration because the matter is sub-judice and once the resolution plan gets approved, so we will go strictly as per the plan. Saurabh : Thank you. Moderator : Thank you. Ladies and gentlemen if you have any questions please contact Balkishan Singla, Investor Relations NBCC Limited. Ladies and gentlemen on behalf of Yes Securities that concludes this conference. Thank you for joining us and you may now disconnect your lines.

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