Key takeaways of the conference call

Order intake during the fiscal ended March 2016 was Rs 7399 crore and the order book as end of March 31, 2016 stood at Rs 17655 crore. So far in Q1FY17 the company got LoI for orders worth about Rs 2000 crore.

The company targets an order intake of about Rs 12000 crore for FY17. The company sees strong opportunities in roads, buildings, irrigation and water sectors. Besides road EPC and Hybrid road projects the Telengana state has water grid projects under pipeline worth upto Rs 36000 crore implemented over next 3 years. Similarly the Andhra Pradesh state is building its new capital city and that throws up building contracts. So the company is confident of achieving its FY17 order intake target.

Expecting a revenue growth of 10% for FY17 considering strong starting order book as well as strong expected order booking during the quarter.

Some of orders for which bids submitted during FY16 not opened within that year and in some case LoI not given. This delay restricted the order intake for FY16 but that start trickling in FY17.

The company signed definite agreement for sales of two road assets for a total amount of Rs 200 crore. The company will get Rs 100 crore for Bangalore Elevated Highway where the company invested Rs 160 crore. In case of Western UP Expressway the company will get Rs 95-97 crore. As per the definite agreement the claims pending to be paid by NHAI belongs to original promoters. Claims pending to be paid by NHAI will be about Rs 400 crore in case of Western UP Expressway projects. So this Rs 400 crore will come to original promoters of this project i.e. NCC and Gayathri Projects. And this recovery of claims will offset the equity loss.

Debt as end of March 31, 2016 stood lower at Rs 1883.5 crore compared to 1995 crore in the corresponding previous period. Deb as end of March 31, 2016 includes WC loan of Rs 1674.8 crore, ST loan of Rs 25 crore, LT loan of Rs 59 crore and machinery loan of Rs 59 crore. Interest cost is expected to reduce to Rs 400 crore from current Rs 500 crore.

Receivables have come down to Rs 1324 crore.

Land sales income of about Rs 11 crore and profit on this is RS 5-6 crore.

Other income includes Rs 115-120 crore of interest on loan given to subsidiary companies. Interest earned on Rs 400 crore loan given to NCC infra Holding is about Rs 65-70 and the interest earned on about Rs 400 crore loan given to NCC Urban is about Rs 50 crore.

Some conditions are to be met by the company in case of Bangalore Elevated Expressway and once that is met the deal will be through and then the provision for impairment will be made.

In standalone financials the provision made for impairment of investment of Rs 51.30 crore comprise impairment of investment in equity of Western UP Expressway amounting Rs 21 crore and Jubilee Hills project amounting about Rs 30 crore. The profit on sale of long term investment amount Rs 30.98 crore is from OVIL annuity road project. So the net EO is a loss of Rs 20.32 crore.

The exceptional item (net) in consolidated financial statement for the quarter and fiscal ended March 2016 was Rs 40.17 crore and that is towards for impairment in investment in subsidiaries and associates.

Loans to subsidiary currently stands at Rs 2400 crore and half of which is for NCC Vizag Urban.

OB infra is an annuity project and the company has completed securitization of it. Pondichery Tindivanam (PT road project) is not generating enough revenue and it went to the lender for restructuring of the debt. Currently no cash support for the PT Road as of now.

For FY16, the Oman subsidiary and other MEA subsidiary have registered a STO of Rs 836.7 crore and a loss of RS 34.54 crore.

Gross block is Rs 1268 crore.