NBCC (India) Ltd

qrqttRrft (!f©n) fbft& < TWO iPm %IEFT : N BCC (India) Limited Ladies and gentlemen. good day. and welcome to NBC(.- (India) Limited QI FY '25 Earnings Conference Call, hosted by Elara Securities Private Limited. 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 opeFatoF bY presslng star then zero on your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Ms. Ankita Shah from Elara Securities Private Limited. Thank you, and over to you. ma'am Thank you, Manav. Good afternoon, everyone. On behalf of Hara Securities Limited! I welcome you all to the Ql FY ’25 Earnings Conference (.-dI] of NB(.-(.- Limited. We are pleased to host the management, which is represented by Mr. K. P. MahadevaswamyT Chairman and Managing

HSCC, our subsidiary company. HSC(.-, procurement of bio_medical equipment and hospital furniture for Pandit Deen Da)'al Upadhayaya University of Health Sciences9 Kutail. Icarnal INR528 crores. New government medical college for 100_student capacity. 430_bedded hospital at Buldhana, INR411 crores. One more subsidiary of HS(.'L. construction of new medical college, 100-student capacity, 430-bedded hospitdl7 Parbhani that is in Maharashtra9 INR404 crores Updating Amrapali project. Amrapali project has contributed INR370 crores in top line. out of 38,000 housing units, so far, we have completed around 21,000 units, and we are committed to Page 2 of 13

q7zalaRt (#faT) film 1 HPa (TrgP ${ T'IIi ; provide remaining houses on or before 3 1 st March 2025. Work on Phase 2 project is going on. and we will go into award the work at the earliest, Updating redevelopment projects. Nauroji Nagar project is on finally finishing stage. and we have already starTed handing over of the project. Netqji Nagar! the first phase of the projec't valued about INRI ,450 crores is currently underway and 70% of the work almost completed Additionally. 2 more tenders’ worth of INRI,700 crores are in pipeline for appointment of contractor- Sarojini Nagar. This is a :arge target and worth more than 10 phases are going on with a project value of INR6,900 crores

Opportunities in these sectors are very huge! and we are in talk with various state government agencies, including Housing for All, Pradhan Mantri Awas Yojana. Feasibility study and DPR preparation for low-cost servicing project is underway for many government departments.

Land monetization. Government agency, including PSUs have a lot of land parcels across India9 which are not generating any revenue to the owners. NB(.-(.- has been accessing these opportunities and started feasibility of few land parcels across Pan india for these large opportunities similar to BHEL works. After a successful journey of redevelopment business model, NBCC is also eyeing some large-sized projects in the upcoming months, specifically government colonies for redevelopment Encash ofAmrapali project experience and expertise, NBCC is examining feasibjljly of 2 more subsidiary projects, one in Gurgaon and one in Noida9 that is Supertet.'h and other private agencies. Overseas business: the expansion of new opportunities in Fiji, Mdribor7 Philippines:

Dubai and Kuwait, Diversification. Acquisition of underperforming public sector units with significant land assets.

Now thank you, the forum is open for question and answer.

Thank You VeFY much. We will now begin the question-and-answer session. We have our first question from line of Sumeet Rohra from Smartsun Capital. Please go ahead FlrstIY' slr9 1 mean7 manY congratulations on posting a very good set of results in quarter 1. Sir? if you can just take us through what is our current order book today? And secondly. you just mentloned that You are looking at manY various business opportunities. So how do you basically see order inflow over the next maybe 6 months till this financial year?

MY second questionl sir! is now that You've got such a robust order book and we have a very strong targets of about INR25,000 crores revenue. So sir, this year, I mean, what kind of revenue growth are we looking at? And secondly. if you can also help understand a little bit on how do Page 3 of 13

@ qrqt Vt tfl (§f©q) fbft& { WT (mr qT TH ? Augus£ 16, 2024 you think EBITDA margins, etcetera will shape up a]ong with PAT because then \ve see a now through from EBITDA to PAT direct]y. If you can just highlight a bit on these two then I'll come back for more, sir.

So the first question you asked, the order book. So we have around iNR70.000 crores order book in our standalone only. And in consolidated level. INR8 1,000 crores order book we have. And the current Year target is around INRI O,000 crores turnover at the standalone and INR13.000 crores at the consolidated level

OkaY' And sir, I mean, on margins because in Q4? we saw I mean. a very sharp uptick in margins in Q4 and Ql though generally is a subdued quarter always for NBC(.-. But this time3 Q1 also was quite good. So if you can basically tell us a little bit on margins that how do you basically see this shaping up for the full year? 5.5% to 6%. around 6% profit margin.

OkaY. And sir, I mean, on the potential business opportunities, which you lust mentioned. I mean land monetization of other PSUs Plus stress projects of Supertech. so sir, what! I mean in your eYes or in your opinion, is the potential we are looking at in terms of getting further orders?

Because currentIY, You said INR8 1.000 crores. So can we end the year with about INRI 00.000 crores?

OkaY- And sir, if I heard cormctIY- You said that you're looking at about a INR13,000 crores consolidated revenue for current year, which is a sharp 25% growth. so do you expect this growth in revenue to continue for the next several years seeing the robust order book we have?

DefiniteIY. FoF getting anY project we want to start, we'll need some statutory approvals. for which it will take at least 6 to 8 months. So once we’ve got statutory approvals and all then the order book can be converted into execution Thank You. We have our next question from the line of Akshay Patil from NBC(.-. Please go ahead I want to know NBCC has recently increased the authorized share capital. So any plans for further fundraising? Or what was its purpose?

Not for fundraising. So this question will be answered in the next _ at the next meet OkaY- So mY next question is NBCC was planning to set up an NBFC to fund its internal Not presently Page 4 of 13

@ 1fIr e!i(1[ RIE•!gW ) Jh1[][ir& a Next fiscal year?

Definitely. presently, we are not getting any order from that low-costing housing projects. But certainly, we have discussions going on with some state governments. We're going to get the other in this year, current year.

Not presently. Okay. Sir, my next question is revised estimate for the top line and bottom line for the next tlscal year not this fiscal, next fiscal year Yes, next fiscal year Not this year. coming year? Yes, coming year Current year, you are talking?

No, next year growth. I'm asking about the growth. How much can it increase top line? Can you Increase. . . ?

Around 25% to 30% growth we are expecting in top line.

Okay. So in this budget, INR10,00,000 crores has been allocated for the urban infrastructure development. So how much percentage of the order is NBCC expecting so that you can secure it?

Thank you. The next question is from the line of Vasudev from Nuvama Institutional Equities Please go ahead.

Sir, I had a few queries. So on the Ql, what is the total value of works that we have awarded?

And how much are you planning for the full year than this year?

Total awarded at consolidated level is INRI,700 crores in the QI, standalone INRI,400 something Okay. And how much are we planning for the full year?

Full year around 12,000 crores to INR13,000.

Okay sir INR12.000 crores to 13,000 crores and sir out of this INR8 1,000 crores of order book, how much is currently ongoing work?

Currently, around INR2 1 ,000 crores is in running projects Okay INR21,000 crores. Sure, sir. And sir. you said only EBITDA margins, you are targeting 5.5% to 6%. So what is that we’re planning for the PAT margin? PAT margin around 4.5% to 5% Page 5 of 13

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The sold value is around INR3,6C)0 crores and so far around INR6.000 crores we have executed another INRI,800 crores to INR2.000 crores only balance that we're going to compete by next March 2025. We're going to complete all the units. So far we have completed around 21,000 units. The rest, 17,000 units. total 38.000 you have to complete so 17,000 _ out of 177000 is balance, out of 1 7,000 around 15.000 units we're going to complete by this year December itself another 2,000 units next March '25 Okay. Sure. sir. And sir on the NetQi i Nagar project. can you please repeat. I missed your opening remarks over here. What is the value that is currently ongoing and how much have we completed the execution here?

INRI)400 cfores project that is GPOA is in progress, out of which block 1, 2. 3, block 3 has completed and handed over to security for internal finishing work. soT so far around 70% of work completed. Ba]ance we're going to complete by November, December.

Okay, sir. And sir, our Nauroji Nagar is now fully sold up, right?

Yes9 fulIY sold UP. OnIY some 6 f]oors have to be sold that i think by this month of end we're golng to sell complete inventorY. There is a lot of competition for purchasing the flats office space in Nauroj i Nagar, OkaY. And sir, on the Saroj ini Nagar what are the sales that we are planning for this year?

Sales onIY one – Sarqjini Nagar has only one downtown bulk sale that has been completed. We have sold out the bulk sale, successfully sold Saroj ini Nag.ar.

And how much are you planning for balance in this year?

Balance is from office space once again the commercial space has to be built. so we are waiting for the cabinet approval. As soon as we get the cabinet approval. we'II go into stan the construction of the commercial space.

OkaY. So then over here until last quarter we had already sold INR500 crores to INR600 crores So that is the only sales until now in this project9 right? Where in Nauroji Nagar? Sarojini Nagar Page 6 of 13

KIddd (iMf) Bf#s i TRa TRIP !;F 3l:lq Saroj ini Nagar, INRI,300 crores unit we sell it. Recently9 the downtown sales has been taking place.

Okay. So then in your balance, we're not expecting any further sales in this project in FY '25?

There is no sale in Sarojini Nagar so far as of now whatever inventory is there that inventory already sold out Okay. So sir what the total value that we've sold over here?

In Sarojini Nagar INR] ,300 crores and Nauroji Nagar INR12l500 crores already sold. so one more action is going to happen in this month only wherein we can fix another INR800 crores to INR900 crores that is the last action In the Nauroj i Nagar? In the Nauroj i Nagar, Okay. And lastly. sir, what is the total real estate that we've sold in this quarter? INR63 crores.

INR63 crores and what is our target for the full year?

Around INR400-600 crores we are targeting.

Okay. Sure sir that’s it from my side I will come back in the queue for more questions.

Thank you. The next question is from the line of Ankita Shah from Elara Securities Private Limited. Please go ahead Yes. Sir, could you help us with the order book breakup between project management consultancy orders and redevelopment orders?

PMC and redevelopment around 46% on PMC. 54% is on redevelopment that is out of INR8 1,000 crores 46% in PMC and 54% in redevelopment model. And EPC is very small margin from 6% to 7%, Okay. And sir in terms of inflows, how much inflows are we targeting for this year and from which areas?

Another INR20,000 crores. So far around INR20,000 crores we have secured, another INR20,000 crores we are expecting in this current year Okay. And where does this opportunity come from you've mentioned housing for all7 land monetization, overseas business. If you can quantify on each of these? K. P. !VIahadevaswamy: Vasudev Page 7 of 13

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Some land monetization around INRI 0.000 crores from the state government and some PSU land monetization INR5'OOO CFOms and from the government and Pradhan Mantri Awas Yojana So we are expecting INR5,000 crores, OkaY. And the overall opportunity pipeline across all this would be tike over the next 4. 5 \,ears how big this opportunity can be?

AFC)und next 4' 5 Years, we can go UP to INR200,000 crores order book, will be around iNR200’000 crores' Current Year, we are targeting for INRI OO,000 crore, INRI,00.000 crores So next 4, 5 years, I think it will double9 almost double So INR100,000 crores is your inf]o\vs or the order book number') Our order book- CurrentIY, we have INR8 1,000 crores at the consolidated leve1. Another INR20,000 crores added, it will be INRI 00.000 crorcs during this year.

Correct, correct, correct. Okay. Okay. And what about. sir9 any opportunities in overseas market?

Yes. We are going to get some new work order from Fijip Morocco, Kuwait. Dubai. Duabi also we're looking for our real estate as well as some PMC projects in Dubai and Kuwait, OkaY- How much would be OUf bid pipeline as of now? No, overall domestic and overseas bid pipeline?

As we alreadY told INRIOO7000 croFe, around INRI OO,000 crore. It includes overseas also We have our next question from the line of Sumit Arora from SmdrLSun Capital

Yes' I mean 1 iust heard Your comment just now on the opportunity, which you said over the next 3 to 4 years. So sir if I understand correctly, you're s,lying that next _ I mean, currently. by the end of this year, our order book should be close to INRI OO,000 crores. And after executing of INR13lOOO crores9 so if You say that our order book should be about INR200,000 crores after 4 Years. which basically means that, that wotlld be after executio„1 ,i8ht?

So because I mean, since we are looking at a run rate of about 25%. so my understanding is that this Year you \viII do INR13,000 crores. then the next years you could do about INR 1 7 000 crores INR18,000 crores, then on the third year. you could be about INR23,000 crores. INR24 000 crores. So you are basically saying that after executing and growing 25%. your order inno\v. I mean, your order book after 3 to 4 years should be INR200>000 crore. Is that correct. sir?

Because we are getting around INF(40.000 crores work better in every year. so after deducting INR25,000 CFores, the balance ordeF book \vi]I be around INR200,000 crores after 4. 5 years.

The next question is from the line of Amit Kumar. a shareholder Firstly. congratulations for the good results. And there are two questions. First is) as per your previous guidance, about INR25.000 crores top line and INR2,000 crores bottom line 27 28. if I am correct Page 8 of 13

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So with this new development, like You are getting good orders and good execution. So are you sticking on this number? Or are you existing or 1 mb:in 3 are you are going to raise this bar?

DefinlteIY it will rise. this is the minimum. Whatever we are committing. this is minimum Definitely, it will vary another 5% to 1 0% because we got this year alonet INR20.000 crores in the first quarter only we got the order. And we are expecting another iNR20.000 crores in the next comlng quarters- So INR40,000 crores onIY we got against INR20.000 crores. So definitejy it will increase.

Because You said that You will Faise like tOP line by 25% every year. So in that formul& it wi11 be around INR27,000 crores, INR28,000 crores, if I'm correct7 the top line?

Another 5%- 10% definitely it will increase, OkaY- And the bottom line. you mentioned about INR2,000 crores in your previous session, 1 means last Year' So INR2,000 crores, it will also increase?

Definitely, definitely, it will also definitely increase. Because we have our real estate info whereln we are getting profit of around 25% to 30%. So that will be also added to our kitty. so definitely . .

Bottom line is, I mean! last YeaF -- last financial year, the top line was like around INRI 0.000 crores and bottom was around INR500 crores something __ I mean 5%! the margin. so _ but as we were saYlng that in '27) '28. if You are going to book top line around '28 and your bottom line is around, let's say, INR2,300 crores3 so it means like 8% to 9% bottom line'> Yes, definitely. Because our breakeven is around INR5 3000 crores, INR5p500 crores our breakeven point that the overheads it will match, Afterwards3 anything we will earn the profit will directly increase, so that is the reason So like -- so this Ycar also, Youf margin like bottom line -- 1 mean. next financial year. '25 -- '24 '25? Your margin would be like. if I am right, around more than 6%? More than 6% More than 6%' OkaY- And anY new – like You'Fe going to start your own projects in real estate more or Just you are staying with the PMC?

No, no, no- We are going to start. We have three land parcels at Jaipur, one land parcel at Coimbatore. So that we're going to start. We have one more project at Gurgdon.

In that segment, your profit will be around 20% to 25% margin9 right? Yes Page 9 of 13

@ 1F1r ;a[t RIFrIEF:Tr ) #![ (!f©n} F;+Fu2€ But then the question is, I mean. your mQjor part is PMC and where there is just 8% your _ I mean, the EBITDA, 8% margin. So how you will achieve this 8% bottom line in next course of 2 years?

As I told you. around INR200 crores. INR250 crores only our overheads. Beyond INR250 crores. so we are going to get profit. It's our overhead. So that is the thing. one more thing in real estate, we are getting good margin.

Yes. But that is very limited part, your real estate will not more than around maybe 5% to 10% in your book I totalIY agree. In redevelopment projects, we are getting market increase also, 1 % or 2% market increase also we’ll go into get.

So in that, you will achieve 8% bottom. And this new Jammu and Kashmir project. what is your fee? The same 8%?

Not -- including the marketing around 7% to 8% lo/o to 8%. So this all development. So you will get more like these projects in coming years? Are you Yes. In the coming quarters, I think we are expecting one more state government to participate in the development of the project not redevelopment development of the project, That kind of a scale or lesser? Almost, almost. It is equivalent to.

So it means that in the next 5 to 6 years, your path is clear about 20% to 25% growth as top line and also on bottom line? Yes Thank you. We have a follow-up question from the line ofAnkita Shah from Elara Securities I wanted to check in these prQjects that we've got. Are these projects on nomination basis or we have bidded for these projects and got it?

Redevelopment. Of course, redevelopment projects we are getting on nomination basis. But certain PMC projects, we are getting through competition even EPC contract a]so through competltlon.

And this recent Srinagar project that we got is..

It is on nomination basis. Srinagar, Kerala, and Kochi Metro, all the 3, we got through nominations. They got their approval from the cabinet Okay. And the Page 10 of 13

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In redeve]opment. only NBC:C is doing redevelopment projects except NBCC nobody is doing Even for CPWD in 7 GPRA, we are generating money and giving to them. So this is the USP of NBCC redevelopment So in this redevelopment project, which is nearly 50% of your order book. Any cost escalations or delays would be a pass-through to the government?

Pardon me, cost escalation. Whatever profit that wit I be given to we are charging our PMC fees.

The profit of course, it will go into government only. state government only No. 1f the project is delayed and the overall project size only increases then you get your fees on the escalated project cost or at the original project cost?

No, actual cost. If project cost increases. we'll go into get done by increased costs So do you get fees on the increased cost?

Okay. Got it. And who are the other competitors for us in other PMC orders?

PMC orders. 3, 4 PSUs are there. one IRCON. RITES, EPIL. EIL. WAPCOS, MECON Private companies don’t bid for these orders?

Private people won't get this among PSU only because we are doing government projects Government projects are usually appointed to either CPWD or state government bodies or PSUs So among the 3. it will go into competent.

Okay. And these margins are decided by the government or?

No. We have to quote. Suppose if you are in the competition means you have to quote the rate.

And nomination, of course the government will decide. Mutually, it wiI] be settled based on the quantum of the work. size of the work and ]ocation it all depends on the fdctor for deciding the PMC fee And generally how much is the PMC margins that we get in this? Around 6% to 8% 6% to 8% is our margin plus the subcontractor will also make margins?

He will get around 10% to 15% or it is usually kept in the as per CPOD DSR the contractor profit and overheads will be around 1 5%. So that will be extra not in the existing margins, So total was 16%, 10% to the subcontractor and 16% for NBCC?

Not 10%. 1 5%. As per the security guidelines 1 5%. we have to pay tax. GST. I mean. not GST. overheads and labor pays everything is included in the 1 5%. Page 11 of 13

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Okay. Got it. And over and above that 6% for us? 6%. Cost plus. Whatever cost plus. Cost plus. Okay. Cost plus Margins we are getting around 10%. We are getting 10%. Some work: we are getting 8% to 10%- in Amrapali: we are getting 8%. So it depends on project to project size of the proje1.,t.

Thank You' We have Our next question from the line of Akshay Patil from NB(.-(.-. Please go ahead Yes. The recently secured iNR159ooo crores Srinagar project. so what is the timeline within which it should be executed?

It is vaIYing Rom – actualIY. this will be in a phased manner. The first project we are targeting 1 to 2 YeaEs’ nEst phase' The rest of the ppo.ject maximum 5 years. We're going to develop th,a satellite township in phased manner.

OkaY. It means by end of 6 years to 7 years, the project will be completed. right? Yes Okay. Thank you. That's all from my side.

The next then is from the line of Sumeet Rohra from Smartsun Capital. Please go ahead Just two things from my side. One is that what's the cash we have today in our book? And sir secondly, how much of land parcels do we own today at NB(.-c-? plus9 we also had some land in Delhi, right? I mean I don’t exact]y recall which one. So how much of that land we have of our ownp whlch is in Delhi? And how big is that, sir. and how much is value of that?

First question is first. i'll answer for your first question. The total fund available with NB(.'c is around INR2,200 crores, out of which non-dedicated, INR732 crores. Similarly, in HS(.'c aFC)und INRI.700 crores, non-dedicated, INR154 crores. In HS(.-L, INR788 crores, non_ dedicated INR639 crores. In NSL. INR85 crores, non_dedicated, INR83 crores. so we have land parcel in Delhi, that is Ghitorni around 22 acres. This also we are p]anning to develop this land parcel of Ghitorni. I think I have answered your question.

And slr, basicalIY, on the land parcel. Sir how many parcels do we have all over India?

All over in India. we've around 15 land parcels. Around 39 acres excluding Ghitorni 22 acres The next question is from the line ofVikas, a shareholder. Please go ahead, Yes. Sir, just wanted to check, sir, any plans for listing of our subsidiary down the line? Page 12 of 13

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Yes. Okay. Understood. Perfect. AII the best for the future. So thank you. Thank you Yes, we are planning one more subsidiary Any timeline. sir? This financial year, next financial year? Next financial year Thank you, sir The next question is from the line of Mini Shah from Arihant Capital. Please go ahead.

Just want to clarifY one thing you mentioned to one of the earlier participants in an answer that we are targeting profits ofINR2,000 crores in, I think in 4 years1 5 years. Did I hear that right? Yes, you're right, exactly right Slr9 what would be the margin? i believe you mentioned the INR27,000 crores. INR28.000 crores would be the top line by then?

Top line will be around INR25,000 is minimum! maximum up to _ it may increase another 10% to 20% Understood. Okay. And sir, the cash level that you iust mentioned of INR2)200 crores, this is on a consol basis, right, sir?

No- Thls is onIY standalone NBCC. This includes clients advance also, whereas our money is around INR730 crores.

INR730 crores is unallocated you said! the non-dedicated? Non-dedicated, yes.

Thank you. As there are no further questions. I would now like to hand the conference over to the management for c]osing comments.

Once again, thank you, everyone. for trusting on NBC(.-. We are trying our leve] best to improve quarter-to-qua[ten Year-to-Year, both revenue as well as profit. So next year, we are focusing more on our execution because we already secured sufficient work order. Our main focus is to execution of the projects that we are concentrating on that. so thank you once again all the investors and Elara for arranging this conference, Thank you. On behalf ofElara Securities Private Limited7 that conc]udes this conference. Thank you for joining us and you may now disconnect your lines. Page 13 of 13