Q1 2027 NBCC (India) Ltd Earnings Call Transcript
Key Points
- NBCC India Ltd (BOM:534309) reported a robust 62% YoY increase in standalone EBITDA to INR160 crore, with margins expanding to 8.77% in Q1 FY27.
- The company successfully sold the entire Bharat Business Park, generating INR10,000 crore in just three auctions, demonstrating strong demand for its redevelopment projects.
- NBCC India Ltd (BOM:534309) has a strong order book of INR127,000 crore on a consolidated basis, with a clear pipeline of INR50,000-60,000 crore in new orders expected this year, including the INR30,000 crore five GPRA colony redevelopment project.
- The company is pioneering the country's first CPSE REIT, a strategic initiative that could unlock significant value from asset monetization and position it as a market leader.
- Management has provided clear and confident guidance for FY27, targeting consolidated revenue of INR16,000-17,000 crore and PAT of INR1,100-1,200 crore, backed by a strong execution pipeline in projects like Amrapali and seven GPRA redevelopment.
- The proposed merger of HSCC into NBCC India Ltd (BOM:534309) is expected to create operational and financial synergies, enhancing scale and diversifying business opportunities.
- Order inflows in Q1 FY27 were modest at INR1,600 crore, significantly lower than the annual target, with major projects like the five GPRA colonies and MAHAPREIT facing delays due to pending approvals.
- Execution of large projects, particularly with state governments, has been slow due to statutory approvals, funding constraints, and the need for seed money, leading to delays in awarding contracts and ramping up revenue.
- The consolidated revenue growth was impacted by a subsidiary (HSCC) which had to foreclose a low-margin project with the Maharashtra government, negatively affecting overall performance.
- The company's cash position stood at INR666 crore as of June 30, a significant decrease from the previous quarter, partly due to investments in the Bharat Business Park tower, which will require further capital outflows over the next two years.
- The timeline for the CPSE REIT is uncertain, as it depends on gathering a considerable portfolio of rentable assets from various PSUs, making it difficult to provide a concrete launch date.
- The company's ambitious revenue and PAT targets for FY27 rely heavily on the timely execution of large, complex redevelopment projects, which have historically faced delays, creating execution risk.
Good morning, ladies and gentlemen. I'm Akash, moderator for the conference call. Welcome to NBCC (India) Limited Q1 FY27 Earnings Conference Call. We have with us today Shri K.P. Mahadevaswamy, Chairman & Managing Director; Shri Anjeev Kumar Jain, Director of Finance; Mr. M. B. Singhal, Executive Director, Finance; Shri Pradeep Sharma ji, Executive Director, Business Development; and Shri Balkishan Singla, Investor Relations. (Operator Instructions) Please note, this conference is being recorded.
I would now like to hand over the floor to Shri K.P. Mahadevaswamy, sir. Thank you, and over to you.
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Thank you, Akash. Good morning, everyone. A warm welcome to all of you. For quarter one operations and execution, we have achieved a revenue from operation INR1,823 crore standalone and INR2,260 crore on consolidated, reflecting 10% year-on-year increase on a standalone basis. On a standalone basis, EBITDA increased
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