Key takeaways of the call

The company will achieve 30% revenue growth for FY19 even without any contribution from redevelopment that is delayed due to tree cutting issues. The company earlier factored in a revenue of Rs 1700 crore from redevelopment of colonies but now even without that the company will achieve that revenue growth. The company has achieved a revenue of Rs 150 crore in Q1FY19 from redevelopment of colonies.

Confident of getting Rs 20000-25000 crore orders this year. The company has already bagged orders worth Rs 4000 crore till June 2018 and the company has pipeline of 2-3 projects worth Rs 15000 crore. The company's order book stand at Rs 80000 crore as end of June 2018.

Of the 80000 crore order book the company has already awarded subcontracts worth Rs 35000 crore. The company targets award of Rs 10000-15000 crore worth of subcontracts. The company will achieve Rs 10000 crore of subcontract award as it has already awarded RS 2000 crore of subcontracts so far in current fiscal.

The company has aligned its policy of revenue recognition with lnd AS 115 "Revenue from Contracts with Customers" effective from April 1, 2018. Consequent upon the withdrawal of Guidance Note on Accounting for Real Estate Transactions (for entities to whom lnd AS is applicable), issued in May 2016 in Real Estate Segment and restructuring of performance obligations in PMC segment, the net cumulative impact of initial application of lnd AS 115 upto March 31, 2018 aggregating to Rs 498.86 crore has been appropriated against the retained earnings as at the initial adoption date, as permitted by the standard. Profit for the quarter ending June 30, 2018 would have been lower by Rs 19.41 crore if the company would have recognized the revenue based upon lnd AS 11 and lnd AS 18 .

Sales of office space at NBCC Centre to Balmer Lawrie accounted in Q1FY19.

ECL provision on the balance sheet was Rs 270 crore. Provision of Rs 36 crore made in Q1FY19 compared to Rs 22 crore in last year.

NGT order or Tree cutting delay – the projects will be completed well with in overall project completion period agreed upon as the company has enough cushion.

Giving any compensation for delay as per the agreement with the contractors. Any hike in price or compensation is pass through as per the agreement with client.

By end of Aug 2018 submitted bid for 2 companies and hope of bagging one company.

HSCL - Sales declined to Rs 180 crore in Q1FY19 compared to Rs 288 crore in corresponding previous period. But its bottom line was up at Rs 7 crore for Q1FY19 compared to Rs 4.5 crore in corresponding previous period. More profit inQ1 despite lower sales as the company is cleaning up the balance sheet of HSCL, cultural issues and governance.

Target to start work in 5 railway project redevelopment this fiscal.

NBCC role in Amarpalli if it happens will likely be as PMC consultant. As per the report on completion and cashflow plan submitted by Amarapalli to SC, which is hearing the case the work pending is about Rs 5200 crore spread over 10-15 projects.