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NCC hosted a conference call on May 23, 2017. In the conference call the company was represented by Y D Murthy, ED of the company.
Key takeaways of the conference call
Order intake in FY17 was Rs 9226 crore and the order book as end of March 31, 2017 stood at Rs 18088 crore.
| NCC Order & execution Mix |
| Particulars |
Order backlog as end of Mar 31, 2017 |
% of total |
Order Intake (for FY17) |
% of total |
Order Book Burnout (in FY17) |
% of total |
| Building & Roads |
8293 |
46 |
4330 |
47 |
4413 |
50 |
| Water & Environment, Railways |
3349 |
19 |
796 |
9 |
2337 |
27 |
| Electricals |
1609 |
9 |
1178 |
13 |
482 |
5 |
| Irrigation |
1903 |
11 |
1325 |
14 |
305 |
3 |
| Metals |
47 |
0 |
30 |
0 |
37 |
0 |
| Power |
51 |
0 |
15 |
0 |
225 |
3 |
| Mining |
1874 |
10 |
1851 |
20 |
0 |
0 |
| International * |
962 |
5 |
-299 |
-3 |
993 |
11 |
| Total |
18088 |
100 |
9226 |
100 |
8792 |
100 |
| Figures are in Rs crore; * negative is due to scope reduction |
In Q1FY18 the company has emerged L1 for orders worth Rs 2000 crore and this includes Metro Projects, electrical projects and pipeline projects. The company expects an order inflow of about Rs 10000 crore in FY18.
The company expects a revenue growth of 8-10% yoy in FY18. The company expects an EBITDA margin of about 9-9.15%.
Aggregate revenue of subsidiary was Rs 1086 crore in FY17 and a loss of Rs 190 crore at bottom-line. Losses from subsidiary company will substantially come down in FY18.
NCC Urban and NCC Infrastructure will turnaround this fiscal FY18. And OB infra will reduce losses in FY18.
International Subsidiary (Oman & Dubai) which is constructing Muscat expressway project has completed Phase I and execution of Phase 2 is underway. So some losses will be there in the International subsidiary. The company has completed is projects in Dubai. The international subsidiary has registered a loss of Rs 124 crore on a revenue of Rs 936 crore.
Q3&Q4 of FY20017 was difficult with execution slowed down due to demonetization and company holding back execution in case of certain water and electrical projects. Electrical division has halted further execution in case of UP projects where there is delay in payment due to elections. Client delayed payment in case of certain water projects in TN & Rajasthan.
FY17 mining order inflow is reduced from 9mFY17 levels as the company has decided to account only the executable and achievable part in first 6 years as order inflow given the fact that this mining contract is for a duration of 30 years.
The company expects its debt to increase to about Rs 1800-1900 crone given the 8-10% growth in revenue. The debt as end of FY17 reduced to Rs 1577 crore as the company has received bulk payments as well as Interest income on IT refunds amounting Rs 127 crore at the far end of Q4FY17 which was used to retire debt.
The real estate subsidiary will get Rs 130-140 crore by Q2FY18 by monetization of land parcel including the Kakinada land. The Kakinada land sale currently delayed. So the company will repay the debt taken from parent. NCC hopes its subsidiary will repay about Rs 100 crore out of the total loan of Rs 400 crore taken from it.
The Jubilee Hills land parcel of the subsidiary will be taken up under Joint development by Mantra Developers. Once money flow starts the subsidiary will pay back the loan taken from NCC.
NCC Vizag invested about Rs 160 crore in 100 acres. The vizag property appreciated. To develop the project and sell is to end user. Discussion is going on for JD and about 75% of 100 acres will be taken up for residential which is self financing.
NHAI Arbitration claim is pending with NHAI – The company has given BG for about Rs 21 crore which it will get it in another 15-20 days. Further the company has arbitration in our favour and the company is in the process of giving BG to get the money released. The company expected to receive Rs 90 crore which will take some time as it involves some process. The company has claims worth Rs 1500 crore under various stages of arbitration and this has now moved to fast-track hearing.
Out of Rs 3703 crore, withheld amount is Rs 498 crore, retention money is Rs 1630 crore and receivables is Rs 1535 crore.
The company is not bidding for any projects in gulf region.
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