NBCC (India) Ltd

@ Kq IFIi?F ;};11[F1${PA )=E1T1rtg } # 4 c 4 + Ladies and gentlemen9 good day) and welcome to NBCC (India) Limited Q4 Earnings Conference Call hosted by ICICI Securities. As a reminder) all pa[ticipant lines will be in the listen-only mode, and there will be an opportunity for You to ask questions aBer the presentation concludes. Should you need assistance during the conference call7 please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. MohR Kumar. Thank you9 and over to YouI slr

Thank you. Good a{iernoon. On behalf of ICICI Securities, I welcome you all to Q4 FY '24 and Fy '24 Earnings Conference Call of NBC(_ Limited. We're happy to host the management of NBC'C- Limited. From the management side> we have Shri. K.P. Mahadeva swamy, Chairman_cum_Managing Director; Shrimati, B.K. Sokhey, Director, Finance; Shri. Saleern Ahmad> Director? Projects; Shri. Rajendra Chaudhari, Senior Executive Director, Engineering; and Shrimati. Reshrna Dudani> Executive DirectorJ Engineering. And also, we have Investor Relations, Balkishan Singla with us. so without much delay! now I'll hand over the call to the management to give You initial remark or results and current business outlook, followed by which we'll open the floor for Q&A. Over to you, sir.

Good afternoon to everyone. On behalf of my teamJ entire NBCC family, I extend a warm welcome to you all and appreciate your presence in today's earnings call for fourth quarter ended 3 1 st March, 2024 Financial year '23_'24 was very successfully for NBC-C for various reasons. I would like to share some of the notable achievement of NBCC as we have registered historical performance during the year ’23-’24.

All_time high revenues. NBCC registered historical total revenue from an operatlon iNRIO>433 crores in the financial year ’23-'24 with an increment of 18% on consolidated level year-on-year basis.

Significant increase in profitability. NBCC has also achieved significant jump in profitabilitY and registered one of the highest PBT that is INR559 crores surges 50% on consolidated level year-on-year Record new business secured. NB(.-(.- has secured record new business around INR23,500 crores secured during the year ’23-'24, which was more than 250%.

Successful inventory sales. sold majority balance inventory in World Trade Center New Delhi was at about INR6,480 crores in comparison with FNR2p074 crores in the financial Year '22- '23. It is all-time high real estate sale in redevelopment projects- Update regarding Amrapali Project. Amrapali Project has contributed very significant amount in NB(.-c- top line growth! that is INRI)800 crores turnover. NBCC along with Aspire team has Page 2 of 12

wINMI)Pg ! . May 3/, 2024 achieved sale of 67300 units in Amrapali Projects with total sale value of around INR3,650 crores, (@ I'm happy to share that out of 38,000 units, 20,000 units are completed, and we are commltted to provide remaining houses on or before 31st MaFch 20257 which demonstrates NBCC's capability to solve the country’s complex problems and contribute towards nation building In Amrapali1 additional FAR project$ our 2 tenders worth of INR4,000 crores are in process and to be awarded at the earliest.

Regarding redevelopment of 7 (,PRA. Three GPM has contributed around INRI,900 crores in the top line. And in upcoming years, this number will increase significantIY' Netaji Nagar. Project first phase is going on with projects worth of INRI,500 crores, which has been almost 65% completed. Sarojini Nagar. This is a large project and worth of more than 10 phases is going on. This project worth of INR6,600 crores.

Regarding real estate projec..ts9 NBC(.- is putting dedicated efforts in this direction to reach maximum potential buyer and increase the saIFS volume. We are able to sell INR192 CFores of NBCC real estate in comparison of INR44 crores last financial Year.

Work awarded. Project tender out of around INRIO IOO crores has been awarded during the year '23-’24.

Some of the major projects inaugurated by last year, The inauguration of IIM Sambalpur by Honorable Prime Minister, Honorable President of India inaugurated NBCC built wooden replica of historic flag post at Honorable Presldent House in Rashtrapati Nilayam Hyderabad. This is the tallest wooden flag post in India.

NB(.-(.- has provided in agri infrastructure with the signing of MOUs, construction of world’s largest grain storage using innovative building technology with an approximate value of around 11NRI,500 crores.

Honorable President India also inaugurated NBCC built Kaushal Bhawan- ShTi- Amit Shah, Honorable Union Minister> Home Minister) Cooperation inaugurated office building at World Trade Center.

Major opportunities and focus areas in the upcoming months.

Opportunity in housing sector. Opportunity in this sector are verY hugei and we are in touch with various government agencies> including state governments for housing urban development.

Land monetization. Government agenc..ies2 including PACs have lot of land parcels across India which are not generating any revenue to the owners. NBCC has been assessing these opportunities and started feasibility of 2 land parcels across pan India for phasing these large opportunltles, Page 3 of 12

qq4t€ftql (iFgqI) ftXBits { 'WT mK iIif im }@ q&TH ##IN NB(.-C has signing MoU with BHEL for land monetization and also secured first redevelopment projects outside Delhi, that is Kerala State Housing Board project worth of rNR2 7000 crores. After a successful journey of redevelopment business model! NBCC also aims some large-sized projects in this segment upcoming3 specificalIY government colonies of redevelopment Ent.ash> Amrapali project experience & expertise in NBC(.-'s examining feasibility of a few more real estate projects in Delhi and NCR, Mumbai region where home buYers are faclng such big problems primarily. on similar lines7 NBc-C has developed Amrapali housing project worth of INR4,00 crores in Chhattisgarh and Kerala.

Overseas focus. We already set up concrete foot in overseas, particularly African countries, Maldives, Mauritius. The Social Housing work in full swing in Maldives. We are hoplng that we tap some business in Africa7 Arabian countries in coming months.

NBCC is planning to start real estate venture in Dubai through wholIY-owned subsidlarY in Dubai.

NB(.-(.--' real estate work? we are also reaching out Tier 2 cities for upcoming real estate projects and expedite the sale of it with the existed inventory.

Diversification. We are also taking some steps to diversify NBCC business, other areas like highway: railways, Metro and renewable energy. Thank You for Your continued SUPPOFt and association. I want to express my gratitude for your time and attention today.

The achievement of NBCC in the financial year '23-'24 serve as a testament to our dedication and commitment to excellence. I personally believe these achievements are just starting and will provide a strong foundation for us for better performance in upcomlng Years- As we move forward? we remain committed in our pursuit of growth and contributing to the development of our natIon Thank you once again, and we look forward to your continued support and engagement in our journey ahead.

Now the forum is open for question and answer.

The first question is from the line ofAtul, an individual investor

And firstly7 congratulations for your – I mean, good results, I can saY. And mY questlon is 2 questions. so one is can you give me the sense of what is your expected, I mean, toP line and bottom line for next financial year? And what you are looking how to – I mean, sustain this growth1 what you achieved in this financial year. Is it possible for next 2, 3 years? Or there is some problem that you can see?

have to execute the work in time. So I think the next year target will be 12,500 crores to INR139000 crores we can achieve easily Okay. And you are – I mean, you are firm on Y INR25,000 crores top line during '27-'28? '27-'28, yes. our previous guidance of INR20,000 crores or Okay. And there is no, I mean, adverse effect on these, just a normal question. It’s not a – if this government change, is there any issue or not on your performance?

Because we have in our hand -- all the work order we have in our hand, I don't think any issue with the change in government.

Okay. So what is your – right now, what is your order book? INR649000 crores at consolidated level Consolidated. And I mean do you have any plan to grow – I mean, your business outlook for next yearl like better than INR15>000 crores> INR20,000 crores order book? Or it will be like the same what you achieved in this year?

It will be at least doing INR22,000 crores, INR25,000 crores next year business The next question is from the line ofVasudev from Nuvama.

Congratulations for a great set of numbers. So sir, in the previous question you just said that our consolidated order book is INR629000 crores. So will it be possible to give a split between the PMC and the redevelopment business?

PM(- is around 66% and redevelopment is around 34%, Okay. Sure9 sir. And out of the INR64,000 crores, how much of our order book is currently under execution?

Around INR20,0C)0 crores already in running projects.

Okay9 INR207000 crores. And just one clarification, you said that revenues were looking at INR12)500 crores to INR137000 crores. So this is on consolidated basis, right? Yes And So then what is your stand-alone? Stand-alone, around, INR10,000 crores.

Okay. Awesome. so then on consolidated basis) what are the EBITDA margins that we're looking at?

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5.75% to 6% at consolidated level Okay. Sorry, sir. This one _ this is the EBITDA margin which you're talking about, 5.75% to 6%. And what about the PAT margins then? PAT margin, around 5.25% to 6% Okay. Okay. Got it. And sir! On the order intake in order awarding, so we have order iNRIO5000 crores this year. so how much are we expecting next year? And more other inflows that you're expecting next year?

Next year inflow order will be around INR25,000 crores. And we'll go in to award around INR12,000 crores to INR15,000 crores in the coming year, we’ll go in to award the work.

Okay. Then sir, just few more questions from my side. On 7 GPRA Colony what is the unsold inventory pending in these projects?

Almost World Trade Center> we have sold almost 98%, Only another some 80,000 square feet is unsold. so that 1 think we're going to sold during this month and June month. And we have Sarojini Nagar bulk sale. So that we'll also –sell it very soon. we will completed the project.

We got the NO(.- also hom Fire Department. So now we have to get the Occupancy Certificate. Once Occupancy Certificate is receivedp means immediately we’ll going to sell it off. So the inventory is only around INRI,400 crores, only balance with us, almost FNR12,000 crores inventory we sell it off Okay. And the Nauroji Nagar1 what is the unsold inventory which is now just pending for this 80,000 square feet? 80,000 square feet only So what will be the value for this?

Rs.1500 Cr is pending is to be executed. And we got additional – future INR10,000 crores order. So the appointment of consultant already over, and we're going to call a tender for execut lon.

Okay. And so earlier you mentioned that we'll be looking toward INR4,0C)0 crores. Is that number correct? yes9 we're going award. INR4>000 crores3 we're going to award in Amrapali. I think we're going to generate around INRl9000> INRl>200 crores we're going to execute in Amrapali during this year. Page 6 of 12

w?{Pv#r)s ! . N BCC UH%4 A RmI dWwf Md sir9 on the land bank. So I just want to ask what is the land bank that we currentIY have on NB(.-c books right now? And what we the monetization plans for this land?

We have around 39 acre land in our books, valuing of INR652 crores, of which we have land parcel in Jaipur! Coimbatore and some land parcel in Ghaziabad also. Recently, we have called consultant tendering for Jaipur and contractor – one package we already called for the commercial property appointment of contractor also. So that we're going to take care in the next year.

Okay. What is the sales value> expected sales value from this land that we have?

This land is around, you can say INRI,000 crores, INRI,200 crores -- including land value Including the land value. Okay. And sir? just last 2 more questions. So we sold about INR192 crores of real estate this year. So what is the target for next YeaF? And how much is our unsold inventory then?

Next yearl target will be around INR300 crores. Unsold inventorY is, I think, TNR450 crores And just last one on how much is the seed money which is pending and interest on that?

Actual> seed money9 we have received the seed money from the MOHUA to the extent of INR908 crores. Now seed money with the Amrapali Project is pending to the extent of INR350 crores. plus7 there are some AlIMS works where the INR97 crores is also lying. And the interest amounting to INR2 19 crores is now – is pending to be received Yes from MoHU A as well as from the AIIMS client, Sure. That’s it from my side. Thank you and all the best Thank you. The next question is from the line of Nikhil Abhyankar from ICICI Securities Please go ahead.

Sir can you mentioned the split between the PM(.- and redevelopment of our total order book?

PMC around 66% and redevelopment around 34% 34%. Okay. And sir) you mentioned earlier that you are ]ooking to improve Your margins bY almost around 1% or something. so what exactly will drive this increase in EBITDA margins, if I may understand?

We are getting the redevelopment project at Amrapali and 7 GPRA> there we are gettlng 8% PMC- 1% marketing fee. so that is the main reason we are getting increase in fees. And at the same time! we are selling our real estate inventory where our profit margin will be around 20% to 25%. so that is a reason last year! our EBITD A was 4.47%! previous year, ’22-'23, and we achieved last year 5.4%. There is an increase of 1% EBITD A. The reason is we executed more real estate projects and we sell some INR192 crores real estate projects also. Page 7 of 12

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Understood. So we are not expecting any increase in margins for the PMC business?

Definitely, we are trying to get some more business in the PMC only. Of course, if it is not redevelopment) we are expecting some workload form BHEL, SAIL. A lot of PSU are having land banks and even Jammu Kashmir9 Srinagar they have 415 acre land parcel. After this Code of Conduct, I think we are going to get that order. So we are hoping with so many land parcels across India, not in Delhi. In Delhi also we're trying to get 2 more projects in Delhi.

Okay. And sir if I can ask on the subsidiary part, so how much is the revenue EBITDA and PAT for HSCC and Hindustan Steelworks?

HSCC last year around INRI,500 crores turnout from HSCC and the HSCL INR800 crores. So this year3 1 think we are expecting from HSCC INRI,600 crores to INRI,800 crores, and around INR900 crores to INRI,000 crores from HSCL. And we have one more subsidiary that is NSL from there we got INR280 crores. INR280 crores this year?

This year. Next year around INR300 crores we'll expect from NSL Okay sir. Thank you and all the very best Thank you. The next question is from the line ofVasudev from Nuvama. Please go ahead.

Sir just one more question. What is the total value that is sold in the WTC project till date, total sales till date?

Around INR12,000 crores already sold INR12,000 crores.

Nauroji Nagar is INR127000 crores. And even for Sarojini Nagar till date we have sold INR 12,000 crores Nauroji Nagar INR12,000 crores. In Sarojini Nagm, we sel! it only around INR50 crores, but the balance is around FNRI,300 crores. Okay. Got it. Thank you.

Thank you. The next question is from the line of Shi\'am an individual investor. Please goa head Congrats for a good set of numbers. Sir, I just want to – I just missed on your revenue numbers that you shared for the next fisca] year. Can you just repeat that? Pardon me? The top line number INR12,500 crores to INR 13,000 crores next year. Page 8 of 12

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INR13)000 crores. Okay. So is it a conservative guidance or you can revise it to upwards also?

This is optimistic. only because we are some projects recently cleared in by Ministry. So definitely, we will be going to achieve this target, Okay. And sir, the real estate cycle has been taken. So when are you planning to like develop on your land parcel, start taking up new real estate projects?

Yes, we started. We started one project at Jaipur. We’re going to launch one more project in the Jaipur itself and one more project at Coimbatore. So we are planning to start these 3 projects in the current year, our real estate projects, Why are we not aggressive like the real estate demand is so good, so we should launch at our land parcel or are we looking to monetize our land parcels instead of moving that?

No. We’re going to construct and sell it. We don't want to sell the land parcels So any more land parcels that you will be adding for the real estate this year?

These three are the main. Dubai we are planning. We want to start our real estate project in Dubai3 for which already we have started planning. We’re going to start and open our account in Dubai. We are registering our company in Dubai. So do we have the land in Dubai? No. We don't have any land.

What is it costing and what will – what amount of real estate business you want to do in Dubai?

At least 20% return we can expect minimum 20% return And what will be the growth development value?

So far we have not decided – around initial stage around INR250 crores to INR300 crores the project cost. Okay. And how mu Real estate itselP Yes. How much? INR 192 crores. INR192 crores.

Tunover from real estate this year is INR144 crores. ch revenue will be realized this year from real estate itseln Page 9 of 12

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And what are you expecting for the next fiscal year? Around INR300 crores.

Okay. And sir7 what are the approvals which are pending for redevelopment from the PSUs for this fiscal year that has been halted because of the election period?

So far we got the work order from BHEL. And we are already talking with SAIL, HPCL, ONGC. So many PSUs are having land parcels where the initial discussion is going on. And after this Code of Conduct we we're going to sign MoUs with other PSUs also So what would be the expected amount if we...

There is around 8% to 9% of margin because in redevelopment you get higher margin?

Yes around 6% to 7% we can say including marketing 8% 8%. Okay. Thank you so much Thank you. The next question is from the line of Nikhii Abhyankar from ICICI Securities Please go ahead Sir, I wanted to ask on the international projects front. So what is the status of projects we were doing in Maldives, Mauritius and I guess also in Seychelles and Burundi I guess?

Maldives is going at a good pace. This is almost 65% complete and remaining 35% left. And Mauritius already handed over two big projects, Supreme Court and Special Housing and three projects are ongoing. We are also exploring as we have told in Dubai new land parcels in real estate business.

With regard to Burundi that project is kept on hold because of bank. They have some financial issues with some foreign country. So that is kept on hold. We are also exploring new business in Guinea, that is Guinea-Conakry Africa for a hospital project. So these are the major projects which are in pipeline. Seychelles we are already doing chancery building we are going to start another chancery building project.

I mean how are these projects placed in terms of receivables or the cash flowing – are they any cash flow sign?

So these major projects are all on PMC basis except for Maldives, where we EPC. There are margins around 14%7 15%. And the way we are expecting because of the real estate venture, So we are expecting a return from there of 20%, around 20%. Rest all the projects are PMC, we are getting a fees on that Okay. And we did not face any pressure in the Maldives project once we had some kind of geopolitical tensions between us? Page 10 of 12

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Okay. And sir have you received any kind of indication regarding the 100-day agenda post the government formation? And should we expect any kind of a big trigger for us? 100-day agenda, no, no, we are not – we are yet to get it. 100 days, of course, we wanted to hand it over around 1,800 units in Sarojini Nagar. By two quarters we will be going to hand it over to Ministry. That is our 100 days agenda. And of course in GPOA I officer block we're going to complete and hand it over to the Ministry. These two are the main agendas for the 100 days Okay. And sir, you mentioned about the BHEL order. Can you explain us what exactly is the scope of this order? How big is that and what is the potential value?

BHEL order is actually these are all redevelopment and monetization of their land parcel Major chunk of land parcel is in Bhopal. They have huge land parcel they are owning here. So that is also to be monetized as well as for Visakhapatnam. They have taken over another PSU called Bharat Heavy Plate & Vessels, BHPV. So they are also owning a land parcel of around 150 acres to 200 acres. So these two projects and these two land parcels are to be taken up immediately which is, And sir what is the potential value of these projects?

It will be around – more than around INR10,000 crores to INRI 5,000 crores. INR10,000 crores to INR15,000-odd crores It will be in a phased manner I’m sorry. Did I miss something, sir? Yes, it wi]1 be in a phased manner It will be in a phased manner say around 5 years? 5 years yes.

Sure sir. Thank you and all the very best Thank you. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.

Thank you everyone doing the best and I think next year, this year it is a Sorry to interrupt sir. Actually, there's a question. It's from the line of Shivam an individual investor. Please go ahead Page 11 of 12

@ qq©tftql (#Rgqi} @$Ttg { Imf m;K ;}I am } Sir are you also looking at the redevelopment of the land bank of the Indian Armed Forces, like Army, Navy and Air Force?

Yes9 we are in discussion with Army also because they have a land parcel in Delhi around 100 acre land parcel. With them also there is a discussion is going on and of course railway, railway board also having some land parcel. So that also we'll be going to get monetize.

So when are we going to finalize the deal with the Army in the Delhi land parcel of 100 acres?

And what will be the estimated revenue from... INR3,000 crores to INR4,000 crores value INR4,000 crores. And any estimation, like till when can you finalize it? 1 think during this year hopefully it will be finalized So this will be 1 shot. No phases like this? One shot Okay. Thank you.

That was the last question. I would now like to hand the conference over to the management for closing comments.

Once again thank you. And I think this year, we have achieved all the records and the highest turnover7 highest business, highest profitability. So next year we'll try to keep this momentum in the same speed and same intensity. Once again thank you one and all.

On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Page 12 of 12