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NCC held a conference call on Feb 11, 2016. In the conference call the company was represented by Y D Murthy, Executive Vice President of the company.
Key takeaways of the call
Order intake for 9mFY16 stood at about Rs 4600 crore and subsequently in Jan 2016 the company has bagged orders worth Rs 1873 crore taking the order inflow for 10FY16 to Rs 6473 crore. The company is confident of attaining its internal order intake target of Rs 8000 crore for FY16.
Order book as end of Dec 2015 was Rs 17597 crore. Adding the order intake of Jan 2016 the order book stand at Rs 19470 crore.
No change in the standalone debt on sequential basis. The standalone debt as end of Dec 2015 was Rs 2142 crore with cash debt of Rs 1821 crore, short term debt of Rs 10 crore, long term loan of Rs 299.9 crore and equipment loans of Rs 11.17 crore.
Aggregate income of subsidiaries stood at Rs 320.7 crore for the quarter ended Dec 2015 and at bottom-line it was a net loss of Rs 16.27 crore.
The international operations (Oman & Dubai) put together registered a revenue of Rs 244.4 crore and at bottom-line it was a profit of Rs 0.9 crore. The NCC Urban registered a net loss of Rs 0.09 crore on a revenue of Rs 38.9 crore. The NCC Infra registered a net loss of Rs 5.27 crore compared to a loss on revenue of Rs 11.9 crore. The Bangalore Elevated Expressway registered a loss of Rs 3.76 crore on revenue of Rs 7.96 crore.
Now the mining MDO opportunity is looking good. The company has participated in MDO bid for Punjab tenders. The company has experience in mining and still has equipment lying with it.
NCC Urban paid back the parent about Rs 71 crore so far in current fiscal out of the Rs 100 crore they promised for FY16. And the balance will also be collected.
The monetization of assets including road highway is expected to result in a cash flow of RS 442-450 crore. This will be initially used to retire the debt level.
The company is likely to end current fiscal with a sales of about Rs 8000 crore compared to Rs 8300 crore in FY15. The sales had the benefit of huge contribution from power segment but in FY16 the power segment to contribute only about Rs 1200 crore (a dip of Rs 1900 crore). The lower revenue from other verticals is not much in current fiscal. The company looks for 10-15% of topline growth for FY17 and every year after that as well.
The company expects the interest cost to go down to about Rs 400 crore for FY17 as combination of debt reduction as well as lower interest cost.
| NCC Order & execution Mix |
| Particulars |
Order backlog as end of Dec 31, 2015 |
% of total |
Order Intake (for Q2FY16) |
% of total |
Order Book Burnout (in 9mFY16) |
| Building, Roads, O&G |
8374 |
48 |
2244 |
48 |
2489 |
| Water & Environment, Railways |
4617 |
26 |
2310 |
49 |
1644 |
| Electricals |
981 |
6 |
64 |
1 |
502 |
| Irrigation |
716 |
4 |
29 |
1 |
175 |
| Metals |
37 |
0 |
27 |
1 |
68 |
| Power |
336 |
2 |
|
0 |
902 |
| Mining |
91 |
1 |
|
0 |
32 |
| International |
2445 |
14 |
20 |
0 |
609 |
| Others |
|
0 |
|
0 |
|
| Total |
17597 |
100 |
4694 |
100 |
6421 |
| Figures are in Rs crore |
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