NCC Limited (500294) Earnings Call Transcript
February 7, 2020
Earnings Call Speaker Segments
Good day, ladies and gentlemen, and welcome to the Q3 FY '20 Earnings Conference Call of NCC Limited, hosted by PhillipCapital (India) Pvt. Ltd. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Vibhor Singhal from Philip (India) Pvt. Ltd. Thank you. And over to you sir.
Thanks, Margaret. Hello, everyone. Welcome to the third quarter results conference call for NCC Limited. We have with us the management of NCC, represented by Shri. R.S. Raju, Associate Director Finance and Accounts; Shri. Y.D. Murthy, Executive Vice President Finance; Shri. S.V.N Bhanoji Rao, Vice President Finance; Shri. K. Durgaprasad, Joint General Manager Finance; and Shri. P. Surendra Rao, Chief Manager Finance. We'll have a brief commentary from the management to begin with on the results in this call, and then we'll open the floor to Q&A. Over to you, sir.
Yes. Thank you, Vibhor, and Mr. Bhanoji Rao could not participate -- is busy elsewhere. Now the management is comprising of Mr. R.S. Raju, Additional Director; myself, Y.D. Murthy; then, Mr. Durgaprasad, JGM Finance; and Mr. Surendra Rao, Chief Manager Finance. I request Mr. R.S. Raju to give the opening remarks, and then we can have a question-and-answer session.
Good evening to all of you. I am R.S. Raju, CFO of the company. So just I view the -- a brief on the Q3 performance of the company. Thereafter, my colleague, Shri Y.D. Murthy will interact with you about the other numbers. So first of all, about the order book. In the third quarter, the company could secure only INR 1,217 crores. But in the 9 months period of the current year, company secured INR 3,371 crores. So apart from that one in January month, the company secured about INR 530 crores. So along with that one, some L1 orders also there at this moment, about INR 2,000 crores plus L1 orders are there, which we expect the invoice in the month of February and month of March. So now the -- at the beginning of the year, you -- all of you know that we have an opening order book of INR 35,000 crores, and which includes the orders in Andhra Pradesh. So in Andhra Pradesh, in the current year, we've given adjustment of INR 6,000 crores. And thereafter, some more developments have taken place, some orders they have descoped and some orders, they, again, reinstated. And some orders, particularly relating to the capital city because the new government wants to put the capital in 3 places. And there is a chance of dilution also, the works which already given earlier government, early in the capital city. So we have uncertainty about the continuation or restart of the -- those works and which, around INR 7,000 crore are there. That we -- management decided to exclude for the time being from the order book. So after excluding that approximately INR 7,000 crores, the -- now the order book stands at INR 25,049 crores. About the execution from the third quarter. Before going to the execution, it is our general calls from the analysts and investors about the division-wise order books. So I read out the revised -- the order -- division-wise order book numbers, after excluding these AP orders and also after excluding the orders executed in the current 9 months period of the year. The Building division, we have INR 10,571 crores, which was sort of 42%. The Roads, we have INR 3,291 crores. Water and Railways, we have INR 4,851 crores, about 19%. Electrical division, we have INR 1,503 crores, about 6%. Irrigation, INR 2,333 crores, about 9%. Mining, we have INR 2,050 crores, 3.8%. International, INR 193 crores, which is about 1%. And others all small, small, over INR 256 crores, 1%. Totaling 200%. This is the composition of the order as of 31/12/2019. So coming to the performance of the first quarter. First, I will tell about the standalone. Turnover reported, including other income, INR 2,149 crores. EBITDA reported, INR 250 crores. The profit before tax, INR 95 crores. PAT is about INR 110 crores. EPS, INR 1.83. Here in the current 3-months period, we have received information assessment orders related to 2 years material '16, '17 and '17, '18. And we have received certain tax credits related to those assessment year -- to those years, amounting to about INR 75 crores, which we have accounted in the third quarter. So as a result, the tax expense has come to a negative of INR 38 crores. So as compared to the corresponding quarter of the previous year, there is a decline in turnover, about 32%, which, again, because of the various reasons, particularly the forced elections, the discrepancies or the slowness in the AP and also certain payments in Telangana and certain payments in UP and from Jharkhand. And also the extended range, which have the -- an impact of the reduction -- the turnover of the third quarter. See, in the 9 months period of the year, we have reported a turnover of INR 6,164 crores, as against the INR 8,773 crores, is about 30% decline for the correspond period. So for the divisions, which are responsible for the low turnover in the current year is: the building's division in some part; Roads, because of its abnormal range; Water, it's, again, due to nonpayment by the Karnataka and in [indiscernible] Mumbai, by the Telangana and a nonclearance from the AP projects; and the Electrical due to the range, resurvey and the land clearances. So these are the -- some reasons. These 4 divisions, it's reported from the normal level. So company consolidated results. We have reported a turnout of INR 2,283 crores as against INR 3,415 crores, about 30% decline. We reported an EBITDA of INR 262.76 crores as against INR 414 crores. Reported EBITDA of INR 64.500 crores as against INR 57 crores. PAT of INR 2.50 crores as against INR 167.57 crores. EPS, INR 1.73 as against INR 2.76. So in the consolidation, you're aware that in the International business, the management all decided to close that one. And for other orders, we're [ not ] booking. And residual orders, 2 small orders for this. Those 2 orders are in execution. So thereby, year-on-year, quarter-on-quarter, the turnover from the group companies will come down. Then come to the margins -- standalone, the margins. So in fact, the company experiencing the -- an improvement in the gross profit margins of the projects, which are in execution the current year. So the gross margin for the third quarter recorded as 20.59% versus 17.74% reported in the same quarter the last year. The gross profit margin for the 9 months stands at 21.28%. The EBITDA margins of the third quarter is about 11.81% versus 12.16%, a slight reduction in the EBITDA, which because of the -- this distribution of lower rates on the lower turnover. EBITDA margin for the 9-month period stands at 12.42% versus -- as against 11.8% of the previous year. So for 9 months period, there is an increase in the EBITDA margin. The net profit for the current quarter, 5.13% against 4.94% of the same quarter. And compared to the immediate previous quarter, there is an increase. When we were in previous quarter, we reported 4.44%, whereas in the Q3, it is 5.13%, which again, is on account of the tax credits, primarily. The 9 months net profit percentage is 4.41% against 4.44% for the corresponding period of the last year. So for the company interest costs in the third quarter, the interest cost is increased a little comparing to the same quarter of previous year. Now the -- in the current quarter, we incurred INR 141 crores for interest as against INR 124 crores. And it is partly on account of the increased working capital utilization and partly on account of the increase in the rates of BG and LC commission. And for the year as a whole, we expect in the fourth quarter, some reduction in interest cost because of the plans for reduction in the debt are also there. So the debt at this moment is standing at the...
Yes. I would...
INR 2,362 crores, as compared to...
The standalone debt at the end of the third quarter is INR 2,362 crores, comprising of cash trade and working capital loans, INR 1,865.7 crores, short-term and long-term borrowings, INR 57 crores, missionary loans has purchase or leasing, INR 438.99 crores. Total is INR 2,362.4 crores. There is an increase in the debt level compared to the previous reporting quarter. And compared to the annual number, it has gone up by about INR 300 crores or so. We are carefully examining it. And our aim is to see that the standalone debt comes down by the end of the current financial year. As far as loans and advances to subsidiaries and resources are concerned, the figure is INR 545.22 crores. It is more or less -- I would say, I believe it is INR 576.69 crores last year third quarter. So there is some reduction in the loans. The investment in associates is INR 892.13 crores as compared to INR 956 crores in third quarter of the last year. So the exposure to group companies has come down to INR 1,437.35 crores as compared to INR 1,533.4 Crores in the previous year. Mobilization advance is INR 1,615 crores as compared to INR 1,493 crores in the third quarter of the previous year. Retention money is INR 2,336 crores as compared to INR 2,062 crores the last year. Cash balance is INR 193.6 crores. Inventories, raw materials, INR 472.8 crores. And the trade receivables, INR 3,045 crores. Our receivable turnover for the debt collection period is about 143 days. That is mainly because of nonpayment of outstanding bills to the government of AP after the election results. That's why the receivable turnover rate has gone up. Order book, we already explained, fixed assets INR 1,228 crores. Additions to fixed assets is INR 107 crores. Already we have told you the reduction in the order book by about INR 7,130 crores because of the nonmoving orders from the -- if we -- because of the change of government and change of the capital city, that reshift the capital from Amravati to Visakhapatnam. So the APTIDCO orders reduced another -- about INR 3,306 crores, and capital city nonmoving orders of INR 6,113 crores. Other projects and the increase in scope of reinstation of the projects is minus INR 2,484 crores. So the net result is INR 7,134 crores of orders have been descoped from the order book. Would we have -- we improvised proactively -- client has not canceled. The orders are still there. We'll also carefully examine. But one important aspect is the capital city orders because the administrative capital is moving to Vizag. So then all these orders are likely to be canceled in the near future. As of now, our bank guarantees and also our bills, outstanding bills are -- have to be paid by the government of AP. [Operator Instructions]
[Operator Instructions] The first question is from the line of Ashish Shah from Centrum Broking.
Sir, you mentioned about the change in the order book for AP. Could you just please elaborate on that? So basically, which orders have been removed and what value? And which orders remain and what is the value of that?
Yes, yes. I will repeat once again. See, one thing that happened is the administrative capital, they are shifting them Amravati to Visakhapatnam. We are doing a Secretariat building project in AP, in Amravati that is likely to be canceled. But as of now, it is not canceled. Likewise, we are doing the underground drainage and outer ring road projects because the capital city size in Amravati is getting truncated, it's getting reduced. They have decided not to go further outer ring road and the radial roads and to some drainage works and all. So those projects are likely to be canceled. Now in the AP, capital city, the order reduction is about INR 6,311 crores. That means almost all the orders are likely to be reversed. Any that we have removed because they are nonmoving, except the MLA quarters building, which we have already completed 75% to 80%. The residual orders will also be completed. Now as far as APTIDCO is concerned, the reduction happened to the extent of INR 3,306.58 crores. Now what is remaining in AP? APTIDCO, about INR 1,015 crores will be there. Capital city, about INR 251 crores will be there. Other projects, about INR 3,162 crores. These are some projects where restoration has happened. And also, it includes the ADB-funded projects, and Amrit projects. So the total orders from government of AP, according to us, is INR 4,429.36 crores.
So sir, this -- in the APTIDCO, actually, it was -- originally, I think, what was remaining was INR 4,500 crores?
Yes, yes.
So that has been -- that has come down all the way to INR 1,000 crores, has it?
Yes.
Yes, yes. Correct. See, there was some descope, INR 1,300 crores, but we further -- because they are nonmoving, see, again, they got to make a final distinction. They are not canceled. The client has not told us. But work also has not started. They called us for a discussion, and we told them very clearly that unless outstanding bills are paid, work cannot be started. Now these orders we are removing as a measure of precaution. Suppose, tomorrow client calls us back and says, you start executing the orders, and pays our outstanding bills. They may as well go back into the order book. But because of the 9-months delay in execution, proactively, we will take retail out of the order book. In fact, last year also, if you remember, the Nauroji Nagar, the NBCC project where if a dispute is there in the High Court of Delhi because order is not moving, we will remove it from the order book. So this is a proactive measure by the management and our aim is to see that what we present to our investors is the executable moving order book.
Right. So this INR 4,400 crores is what remains now.
Yes, it is.
And this is right now under execution?
Yes.
Yes.
So you'll be expecting revenues from this in Q4 and next financial year as well?
No.
Right now, in execution, more than 50% of the works. And balance works, we are waiting for the payment, where payments to get. From their side, clearance is there, from their side, they're asking us to do. But it will linger with the payment. Once the -- on payment happens so that we restart using the payment. So that the mechanism should be established in the AP government engineering department. So like that, some works where they feel -- felt priority, they've given clearance, they're also releasing the payments, and we are continuing those things. And just now, they started releasing payments. In the month of January, we received INR 20 crores, it relates to the earlier where we good at 8, 9 months back. So they now issued -- they issued us. We released slowly, project by project. So accordingly, the restart also takes place where the work at this moment stopped, relating to some projects.
Sure. Sir, final. Outstanding exposure from AP, both in gross terms as well as what is the mobilization advance. And hence, what is the net exposure?
Our net working capital is about -- so working capital now held up in all the projects of AP is about INR 829 crores.
This is net? Hello?
Hello?
Sir, this is net?
[Foreign Language] these are net.
What's the gross number, sir?
After excluding the mobilization advance?
Yes.
The gross working capital, excluding the -- this mobilization advance is another INR 500 crores we have to add, and we -- probably INR 1,200 crores to INR 1,300 crores will be there.
The next question is from the line of Parikshit Kandpal from HDFC Securities.
So this INR 7,000 crores...
Sorry to interrupt you, Parikshit, we can't hear you well.
Yes. So this INR 7,000 crores of projects, which you have kept aside now, so what will be the NWC pertaining to only these projects are out of the total exposure of -- which you said obviously pertains...
Working capital.
Working capital. INR 288 crores.
So INR 288 crores pertains to the INR 7,000 crores of orders, which you have basically kept aside as of now?
INR 288 crores and also, earlier quarter, we removed some parts, some INR 10 crores, INR 20 crores would be there, totaling to all that nature, about INR 288 crores.
And gross would be how much? Gross exposure will be how much, sir, in this?
Gross exposure also the same. And there is no mobilization advance from those projects.
So this, sir, [indiscernible]. Hello?
Yes, we'll tell you.
Wait, wait, wait. Yes, but only the net working capital year is there. If we had interest, we would tell you after getting those numbers.
Okay. Okay. And sir, how do we now -- I mean looking as of now, still waiting from the government to hear on this, and we are not looking for any arbitration as of now? Entering into any arbitration?
No, no. No arbitration is required. Government is clear. Whatever work we have done, they agreed to pay, they're not disputing. It is a matter of payment. So they're not disputing there.
So this INR 288 crores. So this will be paid off as well?
So the capital orders are likely to be canceled. It has not happened as of now. So 2 things will happen when they cancel these orders because the capital is moving towards [indiscernible]. One is the outstanding bills of our company should be paid by them. Other one is, our -- all our bank guarantees should be returned to us. That may happen in the next 2, 3 months' time.
Okay. And this PMAY order is not there in the order book now [Foreign Language]?
PMAY affordable housing, residual order likely to be executed is about INR 1,015 crores.
So this has reduced from the scope like INR 4,300 crores of the order has reduced to now INR 1,015 crores?
Yes, yes, yes. Correct.
But we won't take any hit on margins? It's just like the number of units have reduced, right? It's not that...
Yes, yes, number of units will be reduced. And there is no reduction in the costing also. They have to pay us INR 1,600 per square foot that they are honoring for the residual order that is available now.
Okay. Just last one, sir, you have taken a diminution in value of the investment in subsidiaries this quarter. So what is it like which subsidiary you have taken that hit off?
It is relating to the International LLC company, where we are closing the business and where in quarter -- assets are there, the business and other things, they are selling out. So the loss incurred on the sale of assets and also some loss on the operations. So for that one, we made provision exclusively, for that International LLC Company, we made the provision of this INR 23 crores.
And nothing is required now, right? No more provisions will be required?
According to the working production, no more is required for the plant.
The next question is from the line of Mohit Kumar from IDFC Securities.
This is Mohit Kumar. Sir, so what is the order inflow guidance for the FY '20 now? And how do you see FY '20 and FY '21 revenue panning out given all these cancellations?
See in the first 9 months of current year, we grabbed INR 3,371 crores of orders. And in the fourth quarter, we are expecting already -- L1 is there for about INR 2,000 crores, and total of about INR 3,000 crores, which means the -- for the year as a whole, fresh order accretion will be in the region of INR 6,500 crores INR 7,000 crores. As far as FY '21 is concerned, we have not yet worked out the business plan. We'll work out the business plan shortly and present it to the Board and after the Board approval, we'll be sharing it with you.
Okay. And sir, when do you expect in Andhra -- do you think the government will get more clarity by end of, let's say, 5, 6 months? On the order...
Excuse me. Already some clarity is there. Now residual orders to be executed by us in the state of Andhra Pradesh remain at INR 4,500 crores. There is good clarity. Only thing that the formalities of canceling the capital city orders, et cetera, is going to take place. And the payments also to be received by us. And also, our bank guarantees also should be returned to us.
Sir, last question, sir. On the revenue for FY '20, is there any revision of guidance? For FY '20?
Yes. You see, we have done about INR 6,000 crores of our top line in the first 9 months of the current year. And the fourth quarter, we are confident of delivering about INR 3,000 crores, that means about INR 1,000 crores per month, which should effectively take us to about INR 9,000 crores in FY '20. And as you know, we were earlier talking of about INR 10,000 crores of guidance. But now I think we will be able to achieve only INR 9,000 crores.
The next question is from the line of Shravan Shah from Dolat Capital.
Sir, what is the bank guarantee that likely to be received once all the formalities of the cancellation will be done?
About INR 1,100 crores of bank guarantees are there with the government of AP projects. Out of that, I think, some INR 700 crores, INR 800 crores is likely to come back. Because there were INR 4,500 crores of orders going to be executed. And the remaining orders -- again, there is no clarity. Suppose tomorrow they say, some affordable housing project please take up and pay our outstanding bills. There's a possibility that, that also may continue. But capital city, there is no possibility because they are shifting the capital city and so all those orders are going to be canceled.
Okay. And secondly, sir, we said that we will be likely to see a reduction in debt by end of March. How much reduction are we expecting? And second thing is that in terms of the CapEx are more of, I think, INR 105 crore we have done in the 9 months. So how much more we can...
There won't be any significant amount in the balance period, probably INR 20 crores, INR 25 crores should be there.
And as far as debt is concerned, at the end of third quarter, we were at INR 2,300 crores. Our aim is to bring it down to INR 1,800 crores to INR 2,000 crores by the end of the current financial year.
Okay. So this also includes the repayment from the -- any of the subsidiaries. How much -- I think earlier plan was INR 100 crore every year. How much till now we have received? What is likely to be received in this quarter? Current year [indiscernible] have been planning to pay us about INR 100 crores, but so far, they have not paid. They are making some arrangements. And those arrangements take place, and money is available to them. Part of it out of the receivable is available under sale of receivables they are planning. Other than that, they are raising some loan against the completed inventory security. And if they succeed about that INR 100 crores likely to come back to us.
The next question is from the line of Vibhor Singhal from PhillipCapital.
Yes, sir. Sir, just a small clarification. Sir, the INR 4,500 crores of orders that are still there in the order book in AP, as of now, we are not executing anything on them. We are waiting for the earlier payments to be released and only then we will start working more on them, right?
Like I told you, the ADV funded projects, Amrit projects, all those we are executing. And some orders are restored recently, only last month, that reduced will take some time.
They are started.
And also, the -- I told you the MLA quarters in the capital city of Amaravati that is going.
Okay. So large part of these orders are under execution?
Yes, yes.
Yes, yes.
Sure, sir. Sir, just one more thing. Any update on the arbitration from the Sembcorp arbitration that we're looking at? And also on the Taka investment, earlier we had said that probably by March, we are expecting the Sembcorp arbitration to get resolved. What is the update on that and as well as on the Taka one?
Vibhor, that March has not yet come. We are just in February, but any case, the update that we have is the arguments are likely to be completed by end of March. And the award by the arbitration -- award to be received it may take another 3 months. So it is likely to be awarded only in September.
Sure, sir. And Taka as well?
Taka, we don't know, we are looking for out-of-court settlement with the people. The discussions are going on. We are trying to close it between INR 75 crores to INR 100 crores.
That will be the cost to us?
Yes. Yes. Ultimate cost to us.
The next question is from the line of Dhananjay Mishra from Sunidhi Securities.
Sir, you mentioned there a delay from Telangana, Jharkhand and UP as well. So what is the outstanding amount, which have already bid, and how is the progress in last 15, 20 days?
The last 15 days from Telangana, no payments are received. In some segments, for some projects, they cleared, but irrigation projects, we got the payments. And now there's no any much outstanding in the irrigation sector. In water, some projects outstanding are there. One by one, they're releasing basing on their budget and availability. So as on this date, Telangana, roughly INR 200 crores to INR 250 crores outstanding is there. So in Jharkhand and UP there -- relates to the aeronautical projects. But also they're releasing because of the changeover of the government in Jharkhand. Another 2 months, we lost in that one. Otherwise, would have received some significant payments in these 2 months period. So nearly, some INR 300 crores to INR 400 crores outstandings are there from UP and Jharkhand states. But also project by project, we are getting, but not in the speed at which supposed to come out or with what we expected.
And UP, sir?
UP. The both Jharkhand and UP put together INR 400 crores outstanding for the year.
So it will be released in next 3 months? Or can you -- can we expect this?
Yes, in the next 3 months, we are doing several projects, not one project, rather than whatever projects...
They are linked to disbursals from REC, some certification under payment release is expected. Definitely, bulk of it will be received by March 2020.
But we have not slowed down our project. We are executing this at the normal pace despite this delay, all trade states, right?
For some reason again, some slowness is there, not completely -- not completely. Our people are also watching closely. So investing heavily in that also, again, not advisable. Only you are to watch how the funds movement from [ REC ] to the state and how the state mechanism, how much use are there. But we are closely watching, thereby, basing on current inflow, our people actually coming [indiscernible] in these projects. But also impacted third quarter and also have some impact on the fourth quarter because of the slow release of the payments maybe the electrical projects.
Okay. And so in terms of order inflow, why order inflow has coming down? Are we bidding slowly or we are not bidding at the right prices and that is...
Yes, yes. In the first 2 quarters if we take, at the time, we have the good order book is indeed. So at that time, bidding wantonly, we slowed down in the first -- early part of this current year. But after this election result, after the some changes from the new government, then we felt that, again, booking -- order booking is essential. Now we are participating. But the order flow in the market also, post elections is not there as much earlier we have in the last 2 years. And at the same time, some competition is also going on. So as a result, the order book is roughly in that INR 6,500 crores or INR 7,000 crores in the current year.
But I think it is a temporary nature. And you also should appreciate, in the first quarter of the current financial year, because of the general elections. They actually, the tendering processes completely stand still, then the new government are in place. Now what is happening is the state government order award has come down substantially, mainly because many of the state governments are focusing on welfare measures and not on development measures. This is being felt across the board. And also the credit risk report saying that state government order award has come down. Added to that, National Highway Authority of India also, they have a target of about 8,000 kilometers to be awarded in FY '20 and up to first 9 months, they have done only about 1,200 or 1,300 kilometers. They are still doing a lot of catching up to achieve the target. All these factors have impacted us to some extent. But we are confident it is only temporary in nature. For example, last year, we had backed out of INR 25,000 crores FY '19. In FY '18, we got INR 25,000 crores of orders. So current year deliberately because of the good order award and we -- because we wanted to consolidate our position. We targeted about INR 14,000 crores of orders in FY '20, but that is not happening. But nevertheless, we are not much worried because of the national infrastructure pipeline and the huge order reward planned with various government agencies. It is only a matter of time, we go back to strong order award in FY '21 and all.
Can we expect very good bump up in terms of order inflow in FY '21? I mean like we -- you can see in FY '18 and '17, maybe '19.
Yes. We are a centralized company, we have got strong execution capabilities. We have got a very good prequalification. So the leadership position in buildings, roads and water pipelines, we're among the top 3 in all these head bands. Definitely, order flow is going to be picking up in FY '21.
Because of late last 2 to 3 months, all other players are getting good amount of order, but it appears we are not...
Yes. We are a bit unlucky you see. For example, if you thought of affordable housing in Maharashtra there was over 4 packages. We were also one of the bidders but we could not get it. Likewise these -- some road projects in UP, we did not get it. But we bagged this way, yes so this is not 2018 Maharashtra, which is the biggest package in about INR 2,850 crores. Unfortunately, the roadworks in Amravati City, they are likely to be canceled over the most of the order book. But we want to keep moving on. So you only have 1 state, we have a setback, where as we are operating in over 28 states. And the full year order accretion is going to happen based on our capabilities and our prequalification.
I would request Mr. Mishra to come back in queue for follow-up question. [Operator Instructions] The next question's from the line of the Deepesh Agarwal from UTI Mutual Fund.
Is there any slow-moving orders in our non-AP order book, which is like 20,000 odd?
We don't have any slow-moving orders in the non-AP order book. Even in AP order book also, whatever is remaining is a moving order book. That is what we have clarified. We have proactively removed new INR 7,000 crores because we are not moving at the question mark. Like we did last year also, NBCT, we removed because there's a question mark. So the INR 20,000 crores or Y-o-Y INR 25,000 crores is executable moving order book.
Sir, on the non-AP side, is it fair to say that we would be able to execute at least 45%, 50% of the order book next year? Because large portion of this non-AP order book is the orders, which we got up till March '19.
See on non-AP, major orders that we are doing are Patna airport. We are doing Patna airport, that is airport of Bank of India. So the superior rated agency and no payment difficulties. We are doing All India Medical Center, 3 campuses there, relocations, each is about INR 1,000 crores order. Then we are doing Seabird Caravan project, it's a defense project. Again, problem -- payment problem is not there. Again, [indiscernible] we are committed to Nagpur, Mumbai expressway. [ That is repaved ] mainly because of heavy rains in the second quarter, but things are moving now nicely. And they have dedicated financial closure. SPV has got the funds detail. Despite India government being the Shiv Senna government which is also supporting the project because of the reasons of connectivity and all. So all these, these went well for us for FY '21. And definitely, good growth in these days, but I shall should not give you any number right now because we have not worked out a business plan for FY '21.
The next question is from the line of Parvez Akhtar from Edelweiss.
Just one question from my side. Are we cutting only on EPC projects, or are we open to take any kind of HAM projects or BOT projects also?
HAM, we are looking at maybe one or 2 projects lately, but we were [ inside ] we prefer EPC, that is cash contracts, where we've got a strong execution capabilities. And so we are focusing on high-end road, call it, like expressway. Like we have done the Agra and Lucknow, ahead of schedule got it on us. I want to repeat that in Maharashtra for the Nat-Port Mumbai expressway. Likewise, any other expressway projects come, where the competition levels are less and the order sizes are more, we would prefer to take up those kind of projects. Of course, we are bidding for NHA cash contracts also.
So you obviously highlighted that there is a general economic slowdown, state government is also cutting their CapEx. And they are facing payment issues in some state governments. So are there still any state government where CapEx is happening, and where we are bidding? Or it's like slowing down...
Well, not much. You are telling the right thing. You said that is what I was also mentioning. The order award by [ government of BJP ] come down drastically during the last 6 to 9 months. And when and how it is going to restart, is the way you should see. But central government agencies are likely to step-up order reward from now onwards.
The next question is from the line of Jiten Rushi from BOB Capital Markets.
So can you please give us the revenue breakup for Q3?
For divisions, right?
Yes, please sir.
INR 2,683 crores, Roads INR 792 crores, Quarter and Railways INR 1,320 crores. Electrical INR 792 crores.
INR 792 crores?
INR 792 crores. Irrigation 219 crores, Mining 214 crores, International INR 234 crores, Others INR 54 crores. Total 6,309 crores. During the 9-months period, the orders were booted for the revenue reported.
For 9 months, okay. Can you just highlight on the data pipeline, as we are expecting order inflows, as you said, in the next 2 months. So what are the bid pipelines in which segment or which particular projects we are targeting?
One segment that we're looking for is the [ video trend ] packages [indiscernible] hospitals like to call. [indiscernible] with other construction companies in forming TV because the package sales are quite huge, INR 10,000 crores, INR 15,000 crores, INR 20,000 crores like that. The impact is -- the tender was to be submitted in January, but that got postponed to March. And when they call for tenders, again, we participate, that is something that is going to be good for us. Likewise, in [ big road ] projects, where we are already doing a number of packages in Pune, in Mumbai, in Nagpur, we have completed 1 package in Chennai right now, we are doing 1 Bangalore, which is looking good for us. There also, we are looking at good opportunities.
Where...
And again, affordable housing, where we will got against strong execution capabilities. Now Sidco Mumbai is likely to call for tenders, and we will definitely participate. So the building segment, which is the backbone of the company, having a [ 47% ] to 50% share in the order book as well as turnover of the company is likely to add substantial orders as we go forward. Likewise, in [ Roads ] also, we are looking at a good traction and good award of orders, of course, we build any conservatively and carefully to protect our margins, we will have to do all aggressively, but order accretion is likely to be there.
So in Sidco the next package, which is going to come, that would be how many packages total for the next...
Yes. I should tell you, the -- after the change in government, the Shiv Sena Government is going slow on this affordable housing packages. The earlier government was likely to call for tender [ sub ] for the election. And now we have to wait and see how things will develop. And also, the NBCC order, which is, again, with the moves from the order book. But now the arguments have been completed in the Delhi High Court, the judgment is out. And as soon as the judgment is announced, there's a good possibility that this order can be attributed, which means it will come back into the order book.
So when is the judgment -- final judgment expected?
Dates are not fixed. But what we hear is that the Judge is retiring on March 31, but what they are saying is before he retires, he will give the judgment.
Sir, Metro -- which sections were -- are targeting in terms of orderings? [ Bits, bits, Metro ].
Metro, which section is...
Which -- Metro like Kanpur, as you said, we're executing in Pune, Kanpur. So where else you are not -- so where else you are targeting Bangalore...
We have already told you what we have done and what we are doing. Already the order book in the Metro segment is not less than INR 3,000 crores after execution. So whenever the new packages are announced and the bidding takes place, we will definitely participate.
Last question, Maharashtra, Mumbai-Nagpur Expressway, what is the revenue run rate we are expecting this quarter and in FY '21, and so far completed?
This quarter, this quarter, we expect to -- around INR 450 crores to INR 500 crores from the project, revenue.
That is Q4.
Q4.
So for the full year...
There the project would be completed with the balance and the value invested in the next year. About [ INR 100 crores ] to INR 200 crores in March, we report and the balance -- and that balance, we expect to report as revenue in FY 2020 and '21.
There is a bonus clause. We are also targeting that and we want to complete the project ahead of scheduled.
We have a good progress in that project. And we're through the second milestone, but majority of the companies, they're finding difficult to execute that. But in the case of NCC, we have successfully achieved the second milestone.
So this will be the last question from the participants. Already it's been 1 hour. And after this, we'll close.
We'll take our last question from the line of Prem Khurana from Anand Rathi.
So sir, I think you need to come around your remarks, you said, I mean, you want to get your debt number down to almost now INR 1,800 crores to INR 2,000-odd crores from current to almost INR 2,360 crores. So could you please help us understand the glide path because, as I see it -- we're targeting almost INR 3,000 crores of revenues in last quarter. So which essentially would need you to kind of spend some money towards working capital as well. So are we assuming any numbers from AP to come to you. I mean, the INR 800 crores of net working capital, which is there, are we expecting a significant amount of that money back to you? Or how do we achieve this target, sir.
We have a lot of pending amounts with the clients. And we have -- whereas -- the resources to get 2-month period. And we hope that definitely about INR 400 crores, that is a minimum INR 2,000 crores, thereafter INR 1,800 crores in the lease are likely to happen. But early in March month, we have to go to our clients, the release of payment spending payments and also March repayments. That is a cycle every year. So we have already resources, pending payments, if you to take the UP and Jharkhand, selling pending payments for their -- in selling on our pending payments for their AP. And [ I've concerned properly ] in AP, we're leaking all the concerned from the AP. So you end up from the AP, if you take out INR 200 crores, that is absent to reaching -- the target of reaching INR 1,800 crores or so. So we have several resources, and we are confident to bring down after the INR 2,000 crores or INR 1,800 crores.
And also, if you could help us understand, the L1 that you spoke about, would be able to give us a sense -- which all projects would these be and which segments. And how many projects would be these be, 2000...
Orders in pipeline, no we've not got the letter of intent from the client. It is unfair on my part to disclose all the numbers. It is a matter of just 15, 20 days, as soon as we get the order we see -- we are already giving you the monthly order award every month as by -- on the first of the next month we are giving. So kindly wait for some time.
From all the segments are there, not one segment. We will do the [indiscernible].
Thank you. Ladies and gentlemen, due to time constraints, that was the last question. I now hand the conference over to Vibhor Singhal for closing comments.
Yes. Thanks, Margaret. On behalf of Philip Capital, I would like to thank the management of NCC for giving us the opportunity to host this call. Thank you very much sir. And wish you all the best.
Thank you. Thank you all the participants.
Thank you to all.
Thank you. On behalf of PhillipCapital (India) Pvt. Ltd., that concludes the conference call. Thank you for joining us. And you may now disconnect your lines.
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