NCC Limited — Investor Presentation 2023

Aug 11, 2023

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Ref. No.: NCCL/ Regulation 30/2023 Date : August 11, 2023

National Stock Exchange of India Ltd Exchange Plaza, C-1, Block G Bandra – Kurla Complex Bandra (E) MUMBAI - 400 051.

Symbol: NCC

BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Fort M U M B A I – 400 001. Code: 500294

Dear Sir(s),

Sub: Presentations for Analyst/ Investor Conference call on the Un-Audited financial Results for the Quarter ended June 30, 2023.

Pursuant to Regulations 30 of SEBI (LODR) Regulations, 2015 and in continuation to our letter dated August 2, 2023, please find enclosed presentation for Analyst/ Investor Conference call on the Un-Audited financial Results for the quarter ended June 30, 2023 scheduled to be held on today i.e. Friday, August, 11, 2023 at 4.00 PM (IST).

The presentation being uploaded on the website of the Company.

We would request you to please take the same on record.

Thanking you,

Yours sincerely, For NCC Limited

Digitally signed by Mallela Mallela Venkata Venkata Srinivasa Murthy Srinivasa Murthy Date: 2023.08.11 11:02:51 +05'30'

M V Srinivasa Murthy Company Secretary & Sr.EVP (Legal) Encl: As above

NCC Limited

CIL: L72200TG1990PLC011146 NCC House, Madhapur, Hyderabad 500 081 T +91 40 2326 8888 F +91 40 23125555 ncclimited.com

Investor Presentation Q1FY 24

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Date : August 11, 2023

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Forward Looking Statement

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This presentation contains certain forward looking statements concerning NCC’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage operations, government policies and actions with respect to investments, fiscal deficits, regulations, geopolitical risks and Covid 19 pandemic, interest and other fiscal costs generally prevailing in the economy etc. Past performance of the company may not be indicative of future performance. The company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company.

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2

NCC Building the Nation

ESIC Hospital, Gulbarga

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Airport Agartala, Tripura

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AIIMS, Guwahati, Assam

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Nagpur Metro Rail

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Agra–Lucknow Expressway, UP

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Chandni Chowk Flyover, Pune

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NCC Building the Nation

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Seabird Project, Karwar, Karnataka

Water Supply Project, Angul, Odisha

SVAB, ISRO, Sriharikota, Andhra Pradesh

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Rubber Dam on Falgu River, Gaya, Bihar

Housing Project, Bhubaneshwar

Nagpur Metro Rail (Double Decker)

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NCC Building the Nation

AIIMS, Bilaspur, Himachal Pradesh

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Pune Metro Rail

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Airport Agartala, Tripura

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Nagpur-Mumbai Expressway

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Makara Dhokra, WCL (Minning)

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SICPAC Auditorium, Shillong, Meghalaya

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5
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NCCL – Business Constitutes

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S.No Particulars Q1FY24
Revenue
Mix %
1 Construction
i) NCC Limited………………………………………………………………………………………………………………… 87.5%
ii) Pachhwara Coal Mining Private Limited……………………………………………………………………… 10.6%
2 Real Estate
i) NCC Urban Infrastructure Limited…………………………........................................................
1.6%
3 Others
i) BOT Roads ……………………………………………………………………………………………………………..…. 0.3%
Total 100.0%
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6

Key highlights – 1[st] Quarter FY24

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Particulars

✓ Reported highest ever Turnover in 1[st] Quarter

✓ Significant order inflow in 1st quarter

✓ Reported highest ever gross profit in 1st quarter

✓ Recorded lowest debt in 1st quarter of the last 10 years

• ✓ Robust Order Book stands at highest ever

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Rs.3866 crs

Rs. 8154 crs

Rs.588 crs

Rs.1306 crs

Rs.54110 crs

• ✓ Secured award for “Excellence in Cost Management - 2022” from The Institute of Cost Accountants of India.

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Order Booking in the 1[st] Quarter FY24

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Particulars

✓ Phenomenal growth in Order Booking in Q1 on Year on Year by

✓ Phenomenal growth in Order Booking in Q1 on Year on Year by 83% ✓ Significant increase in average size of Q1 new orders Rs 679 crs ✓ Order book grown from Rs 50244 Crs to…………………………….. Rs.54110 crs

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Order Inflow - Quarter wise
14000 13283
12000
10000 8154
8000
5495
6000 4456
4000 2661
2000
0
Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24
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Major Orders Received in Q1 FY24

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Rs. in Crores

S.No.	Name of the Client	Work Name	Amount
1	Haryana International Horticulture Marketing Corporation Limited, Haryana	Development of India International Horticulture market (IIHM) at Ganaur, District - EPC mode in the State of Haryana.	2199.14
2	State water & Sanitation Mission , Govt of Uttar Pradesh	Rural Piped Water Supply Project under Jal Jeevan Mission	1667.84
3	Navi Mumbai International airport Pvt Ltd	Construction of structures at Airport at Navi Mumbai	1144.07
4	Andhra Pradesh Central Power Distribution Corporation Limited, Vijayawada.	Supply & Installation of plant and Civil Contract for Development of Distribution Infrastructure at Krishna & Guntur districts under RDSS Scheme.	719.53
5	Maharashtra State Electricity Distribution Co.Ltd	Supply & Installation of plant and Civil Contract for Development of Distribution Infrastructure at Ahmednagar & Aurangabad Circles under RDSS Scheme.	538.24
6	Govt. of Jharkhand, Drinking Water & Sanitation Department	Survey, designing and drawing, construction of R.C.C. Intake Well cum Pump House, Water Treatment Plant etc. and 5years O&M.	419.66

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Composition of Order Inflow & Order Execution in Q1FY24

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Order Inflow : Rs 8154 crs
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Order Execution : Rs 4287 crs

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Others, 0%
Electrical,
21%
Water &
Railways, 9%
Transportatio
n, 1%
Buildings,
69%
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Others, 0%
Mining, 13%
Irrigation, 3%
Buildings, 44%
Electrical, 14%
Water &
Railways, 16%
Transportation
, 11%
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Order Book Composition division-wise

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Order Book as on 31.03.2022 Rs 50244 crs Order as on 30.06.2023 Rs 54110 crs
Others, 0% Others, 0%
Mining, 9%
Mining, 10%
Irrigation, 1%
Irrigation, 1%
Electrical, Electrical, 15%
14%
Buildings,
46%
Buildings, 50%
Water &
Water &
Railways, 15%
Railways,
16%
Transportatio Transportation
n, 12% , 11%
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Operating Performance – Standalone

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for the 1st Quarter ended 30-06-2023

Rs. Crores

Q1 Change Particulars Growth YoY FY24 FY23 ✓ Revenue increased by 29%, primarily Revenue 3866 2990 876 29% Buildings division & Electrical division Gross Profit 588 465 124 27% ✓ EBIDTA margin increased from 9.51% to EBITDA 381 281 99 35% primarily due to volume increase. PAT 162 120 42 35% ✓ PAT margin increased from 4.01% to 4.20%.

✓ Revenue increased by 29%, primarily driven by Buildings division & Electrical division

✓ EBIDTA margin increased from 9.51% to 9.92%, primarily due to volume increase.

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Operating Performance – Standalone (quarter wise)

Rs. Crores

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Revenue
4500
4016 3838
4000 3373
3500 2959 3004
3000
2500
2000
1500
1000
500
0
Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24
EBITDA
450 424
381
400 349
350
281 289
300
250
200
150
100
50
0
Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24
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Net Profit
200
178
162
180 150
160
120 122
140
120
100
80
60
40
20
0
Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24
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Operating Performance – Consolidated

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for the 1st Quarter ended 30-06-2023

Rs. Crores

Q1 Change Particulars Growth FY24 FY23 YoY Revenue 4407 3351 1056 32% Gross Profit 626 501 125 25% EBITDA 409 308 101 33% PAT (Equity shareholders) 174 130 44 34%

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Group Companies Performance

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Rs. in Crores
1st uarter ended
q
Name of the Company 30-06-2023 30-06-2022
Turnover PAT Turnover PAT
Sub. Cos. /JCEs/Associate Cos
Pachhwara Coal Mining (P) Ltd. 466.2 13.8 265.5 7.9
NCC Urban Infrastructure Limited 74.3 10.1 88.2 9.4
OB Infrastructure Limited 15.0 3.3 13.6 3.5
NCC Infrastructure Holdings Limited 0.1 (0.2) 0.1 (0.2)
NCC Internationl LLC Oman 1.0 0.0 2.7 0.1
,
Consolidation Adj./Non-Controlling Interests (15.8) (15.8) (8.8) (11.1)
Total (A+B) 540.8 11.3 361.2 9.6
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✓ Significant increase in the Turnover of Mining MDO Project.

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Balance Sheet – Standalone

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✓ Inventory

Increase from Rs.1078 to Rs.1246 crs by 15%, is inline with the Construction activity.

Balance Sheet – Standalone
			₹ Crores		•
Particulars	30.06.23 As	31.03.23 at		Inc/ (Dec)
Assets					•
Property,Plant and Equipment	1173		1178	-5
Investment Property &Intangible Assets Investments(Current& Non-Current)	227 875		229 875	-2 0
Loans(Current& Non-Current)	355		372	-16	•
Inventories	1246		1078	168
Trade Receivables(Current&Non-Current) Cash&Bank(inc.MM deposits) Contract Assets(UBR)	3063 804 3679		2945 734 3225	118 70 454	•
OtherCurrent& Non-Current Assets Total	5390 16812		4964 15600	425 1212

✓ Trade Receivables

Increased by 3% QoQ as against 30% increase in turnover. The trade receivable days have come down to 82 days from 87 days QoQ.

✓ Unbilled Revnue

Increased by Rs 446 crs from Rs 3671 crs to Rs 3225 crs, it is in line with the volume of activity.

✓ Gross Block (Capex)

Gross block increased Rs 27crs crs in only by the 1st quarter from Rs 2491crs to Rs 2518 crs

✓ Other Current & Non-Current Assets.

• Other Current & Non-Current Assets Comprises mainly advance to suppliers & subcontractor, Tax assets and Retention money. Increase is in line with the growth in volume.

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Balance Sheet – Standalone

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₹ Crores

As at Inc/ Particulars 30.06.23 31.03.23 (Dec)

E i & Liabilities qu ty

E uit & Other E uit 6484 6322 162 q y q y Borrowings (Current & Non-current) 1306 980 327 Trade Payables (Current & Non-current) 5059 4823 237 Mobilisation Advance 3322 2755 567 - Other Current & Non-Current Liabilities 640 720 80 Total 16812 15600 1212

✓ Debt

• The debt is increased from Rs.980 crs to Rs.1306 crs Rs.327 crs by

• Generally, in construction industry, the debt increases in the 1st quarter but the increase in this quarter is below the normal increase.

• However phenomenal decline in debt as compared to corresponding quarter of the previous year.

✓ Mobilization Advance

• The mobilization advance is increased from Rs 2755 crs to Rs 3322 crs basing on the strong order acquisition taken place in the last year.

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Working Capital - Standalone

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Working Capital - Movement

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₹ Crores
Particulars FY20 FY21 FY22 FY23 Q1FY24
Turnover 8219 7256 9930 13351 3838
% of Growth -32.0% -11.7% 36.9% 34.5% 29.8%
Workin Ca ital 3713 3995 3604 3874 4315
g p
% of Increase 7.5% 7.6% -9.8% 7.5% 11.4%
WC - as % of Turnover 45% 55% 36% 29% 28%
WC DAYs () 159 194 140 102 97
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*Excl. Cash & MM deposits

• ✓ Significant reduction in working capital as a % of revenue Year -on- Year

• ✓ Good collections were happened from the clients in last 2 quarters, particularly from the UP Water Projects

• ✓ Recorded lowest working capital days in Q1of FY24

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Cash Flows - Standalone

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Cash Flow Quarter on Quarter

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₹ Crores
S.No Particulars Q1FY24 Q1FY23
A Net Cash Flows used in O eratin Activities 123 523
p g ( ) ( )
B Net Cash Flows used in Investin Activities 37 109
g ( ) ( )
Free Cash Flows (160) (632)
C Net Cash Flows from Financin Activities 203 478
g
D Net increase/(Decrease) in cash and cash equivalents 43 (154)
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• ✓ Significant improvement in operating cash inflows as compared to same quarter of the previous year.

• ✓ Outflows in Investing Activities declined YoY.

• ✓ Quantum of usage of borrowings have come down significantly.

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Cash Flows - Consolidated

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Cash Flow Quarter on Quarter

₹ Crores Particulars Q1FY24 Q1FY23

S.No Particulars Q1FY24 Q1FY23 A Net Cash Flows used in O eratin Activities 93 452 p g ( ) ( ) B Net Cash Flows used in Investin Activities 74 100 g ( ) ( ) Free Cash Flows (167) (552) C Net Cash Flows from Financin Activities 177 400 g D Net increase/(Decrease) in cash and cash equivalents 9 (152)

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Debt status - Standalone

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Debt for the Quarter ended June 30, 2023

₹ Crores S.No Particulars 30.06.23 30.06.22 A Gross Debt 1,306 1,707 B Less: Cash and cash E uivalents 271 81 q C Net Debt 1,036 1,626

✓ The lowest debt in the 1[st] Quarter reflects good inflows from the client. ✓ A phenomenal Decline in the debt by 57% on Year on Year ✓ The net debt as low as Rs 1,036 crs

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Significant Key Initiatives

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Particulars

• ✓ Focusing to enter into the new verticals to clinch major orders as a part of Strategic Plan to maintain 20% growth year-on-year

• ✓ Strengthening in-house abilities in Planning, Engineering, Designing process, Digitalization, Quality, Safety, Governance etc.

• ✓ Keeping debt at low level to maintain adequate head room for growth plans

• ✓ Maintaining an optimum distribution of works across all major states to minimize risk of collection and execution

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Outlook

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• ✓ The Company achieved a Revenue CAGR of 17% in the last 3 years and Company planning to continue sustainable growth.

• ✓ The present Order Book containing more escalation projects which insulate against any escalation in the input prices.

• ✓ The favorable mix of interest bearing and non-interest bearing (50:50) mobilization advance orders reduce the interest cost going forward.

• ✓ The Order Book contains more of Central Govt. funding and increased portion of private orders lower the working capital days.

• ✓ The stable economy, strong Balance Sheet of the Banks, Capex plan of the Govt., give further momentum to continue its growth journey.

• ✓ The biggest order in the Order Book “UP Jal Jeevan Water Project” Rs.16,500 crs has picked-up good progress, contributed more revenue in Q1 of FY24 and continue its more contribution in the remaining quarters of the year.

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Thank you

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