Key takeaways of the conference call

Lower sales is on account of expected turnover could not be booked as some of the clients are not sticking to the contractual terms and schedules due to both budget allocation or approval issues. There is about 800-900 crore worth of power order book which is slow progressing.

Other operating income of Q4FY13 includes a realization of Rs 65.5 crore from sale of a land parcel belonging to NCC (parent company) during Q4FY13. Equally there is an expenses item related to the land in Q4FY13 expenses. Thus the profit from sale of this land parcel is about Rs 52 crore. Apart from EO income on account of sale of land parcel, in Q4FY13 there was a provision for unrealized business advances was Rs 32 crore and other EO expenses of Rs 7-8 crore. This Rs 40 crore is non-recurring in nature, which has moderated the gain of profit from land parcel.

The company cancelled one power order worth Rs 853 crore in FY13. The EPC work given to the company is moving slowly as Supreme Court has cancelled the environment clearance given to that project. The company as prudent measure removed that order from its books.

Profits and turnover of the company in FY14 should to be better than FY13. The company expects profitability to be better given softening of commodity prices as well as interest rate. The board has to approve the annual business plan after that only the company should share the sales and PAT expectations for current fiscal.

The company looks to bring down the standalone debt below Rs 2000 crore. The company closed FY2013 with a standalone debt of Rs 2225 crore. The company reduced debt by Rs 295 crore in Q4FY13. Consolidated debt in books is about RS 3900 crore.

Monetization of BOT road and power projects: The Company already completed monetization of part of its stake in Himachal Sorang HEP project. Of the two road projects planned for monetization, the company has signed term sheet for Western UP Tollway and due diligence is going on and expect the transaction to be consummated soon. And that for Bangalore Elevated Tollway, there is not much of progress.

The company has given a mandate to NCC Urban to repay Rs 110 crore (including Rs 70 crore of principal) for 2013-14. NCC Urban will sell some of its land parcel and use that proceeds to repay its debt to parent company. The real estate monetization by NCC Urban is booked in the P&L of that company.

NCC Power : The thermal power project is progressing well. Civil works are progressing as per schedule and LC opened for BTG order. The company is confident of achieving the CoD for 660 MW Phase I by March 2015. The company has drawn a debt of Rs 1900 crore so far. Update on PPA for thermal power project: Case I bidding in UP and will participate in Case I bidding of TN and Karnataka when that comes up.

Capex for FY14 is about Rs 80 crore.