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NCC Limited Q1 FY25 Earnings Conference Call Summary
Overview • Date of Call: August 6, 2024 • Submission Date: August 13, 2024 • Key Attendees: • R. S. Raju (Director, Projects) • Sanjay Pusarla (Executive VP, Finance & Accounts) • Neerad Sharma (Head, Strategy & Investor Relations)
Business Environment • Strong order booking guidance: ₹20,000-₹22,000 crores for FY24-25 • Q1 invoice booking growth: 23%, exceeding the 15% target • EBITDA margin achieved: 9.3%, with a target of 9.5% for the year • Positive developments in Andhra Pradesh's infrastructure projects
Financial Performance • Standalone turnover: Increased by 23% to ₹4,747 crores • EBITDA: ₹439 crores • PAT: Up 24% to ₹200.74 crores • Consolidated turnover: Grew by 26% to ₹5,558 crores • Net order book: ₹52,626 crores after new orders of ₹408 crores in Q1
Debt and Cash Flow • Increase in debt: ₹815 crores, total debt at ₹1,819 crores • Cash and cash equivalents: Decreased to ₹140 crores from ₹489 crores • Margin money deposits: ₹694 crores
Future Outlook • Optimism about future order inflows and revenue growth • Focus on maintaining EBITDA margins around 9.5% to 10% • Cautious approach to projects in Maharashtra due to elections
Project Updates • Jal Jeevan Mission: 60% completion, target of 95% by March 2025 • Smart Meter project in Bihar: Ongoing installations • Pending payments: ₹150 crores blocked in Capital City projects
Order Book and Execution • Order book execution timeline: Structured for a three-year period • Potential future inflow: Rs. 5,000 crore project in Andhra Pradesh • Robust bid pipeline: Approximately ₹2,00,000 crores
Real Estate Segment • Profit for the quarter: ₹7.38 crores, down from ₹10.08 crores the previous year • Contribution to overall revenue: Less than 1.5%
Amalgamation Proposal • Proposed amalgamation of NCC Infrastructure Holding into the main company for tax benefits and administrative efficiency.
NCC Limited Earnings Call Summary (May 15, 2024)
Overview • NCC Limited held an earnings audio conference call discussing Q4 financial results for FY 2023-24. • Transcript available on the company's website. • Moderated by Vaibhav Shah from JM Financial, featuring key management members.
Financial Performance Highlights • Q4 Revenue: INR 5,487 crores; PAT of INR 188 crores. • FY24 Revenue: INR 18,459 crores, up 37% YoY; PAT increased to INR 631 crores. • Order Book: Increased by 15% to INR 57,536 crores; new orders exceeded targets at INR 27,283 crores. • EBITDA Margin: Stable year-over-year; guidance for FY24-25 between 9.5% to 10%. • Cash Flows: Operating cash flows improved to INR 1,248 crores.
Key Projects and Developments • Secured three smart meter projects worth INR 7,403 crores. • Significant contributions from UP Jal Jeevan Mission (36% revenue growth in Q4). • Malad project received environmental clearance.
Management Insights • R.S. Raju emphasized prioritizing order acquisition over margins due to competitive pressures. • Neerad Sharma highlighted a robust project pipeline post-elections, particularly in key sectors. • Sanjay Pusarla addressed historical claims, indicating no significant write-offs anticipated for FY’25.
Q&A Session Highlights • Margins: Decline from 12% to 10% discussed; focus on improving net profit margins. • Capex: FY24 capex confirmed at INR 285 crores; target of INR 250 crores for FY25. • Retention Money and Loans: Figures provided for retention money (INR 1,505 crores), mobilization advances (INR 2,311 crores), and loans to subsidiaries (INR 509 crores). • Smart Meter Projects: Clarified investment structures and revenue cycles for projects in Maharashtra and Bihar.
Future Outlook • Anticipated order bookings of INR 20,000 to 22,000 crores for FY24-25. • Management remains optimistic about project awards picking up post-elections. • Plans to maintain consistent dividend payouts despite improved profitability.
NCC Limited Q3 FY 2023-24 Earnings Call Summary
Call Details • Date: February 8, 2024 • Transcript Submission: February 13, 2024 • Management Attendees: • R.S. Raju (Director, Projects) • Sanjay Pusarla (Executive Vice President, Finance and Accounts) • Neerad Sharma (Head of Strategy and Investor Relations) • Compliance: SEBI (LODR) Regulations, 2015
Company Performance • Order Book: • Consolidated order book of INR 57,440 crores as of December 2023 • Target for the year: INR 26,000 crores • Revenue: • Q3 revenue: INR 4,747 crores (41% YoY increase) • Nine-month revenue: INR 12,868.39 crores (39% increase) • PAT for Q3: INR 212.82 crores (42% increase)
Financial Highlights • Turnover: • Group turnover for the quarter: INR 514 crores (down from INR 533.67 crores YoY) • Nine-month total turnover: INR 1,490 crores (18% increase) • Capital Expenditure: • Q3 capex: INR 36 crores; nine-month total: INR 135 crores • Working Capital: • Improved by 22%; working capital as a percentage of turnover dropped to 29% • Debt levels stable, projected between INR 1,300 crores and INR 1,500 crores by year-end
Strategic Updates • Order Book Executability: • 80-85% executable within 2-3 years • Debt Management: • Target to reduce debt to below INR 1,000 crores by FY '25 • Equity Investments: • INR 100-150 crores planned for smart meter SPVs over two years • Total equity requirement of INR 400 crores for two projects
Project Developments • Dubai Real Estate Project: • Exposure of INR 220 crores; efforts to revive with new investor interest • Smart Metering Projects: • Stand-alone order book of INR 50,154 crores, including smart meter orders valued at INR 3,660 crores • Desalination Projects: • Strong interest expressed; studying opportunities in the sector
Future Projections • Revenue Growth: • Projected growth of 25-30% for Q4, leading to 32-33% overall growth for the year • EBITDA Margins: • Expected to maintain above 10%
Conclusion • Management emphasized a strategic approach to funding, project execution, and debt management while expressing confidence in future growth opportunities.
NCC Limited Q2 FY 2023-24 Earnings Call Summary
Earnings Call Details • Date of Call: November 10, 2023 • Transcript Availability: On the company's website • Management Attendees: R. S. Raju, Sanjay Pusarla, Neerad Sharma • Host: JM Financial • No Unpublished Price-Sensitive Information Shared
Financial Performance Highlights • Revenue: Rs. 4,283 Crores (45% YoY increase) • Profit After Tax (PAT): Rs. 69 Crores (decline due to arbitration adjustments) • Order Book: Record high of Rs. 61,796 Crores (362% increase in new orders) • Growth Guidance: 20% for the fiscal year
Group Performance • Gross Profit: Rs. 1,165 Crores (14% increase) • EBITDA: Rs. 713 Crores (15% increase) • PAT: Rs. 271 Crores (1.5% decline YoY) • Group Turnover: Rs. 975 Crores (33.56% increase in first six months) • Cash Flow from Operations: Rs. 159.54 Crores • Trade Receivable Days: Reduced to 70 days (lowest in eight years) • Debt: Increased to Rs. 1,470 Crores
Q&A Session Insights • Revenue Growth: R. S. Raju confirmed 20% topline growth guidance. • EBITDA Margins: Target of 10% to 10.2%. • New Verticals: Selective exploration of new opportunities. • Election Season Impact: Robust order book to sustain operations. • Dhaka Arbitration: 70-72% completion rate in settlement discussions. • PAT Margin: Confirmed around 4.5% to 4.8%. • Debt Projections: Expected increase to Rs. 1,500-1,600 Crores by FY2024. • Capital Expenditure: No significant increase anticipated unless new projects arise. • Equity Investment in SPVs: Anticipated Rs. 400-500 Crores over two years.
Project Updates • Mine Development Operator (MDO) Project: Progressing well with approved initial five-year plan. • Coal Extraction: Achieved 15 million tonnes last year, targeting Rs. 1,500 Crores turnover for the current year. • Second Half Growth Expectations: Anticipated revenue of Rs. 8,200 to Rs. 8,300 Crores.
Conclusion • The call concluded with thanks to participants and an invitation for further questions directed to Neerad Sharma.
NCC Limited Q1 FY 2023-24 Earnings Conference Call Summary
Call Details • Date: August 11, 2023 • Transcript Submission: August 16, 2023 • Attendees: • R.S. Raju (Director of Projects) • Sanjay Pusarla (Executive Vice President, Finance and Accounts) • Neerad Sharma (Head of Strategy and Investor Relations) • Compliance: Submission in line with SEBI regulations; no unpublished price-sensitive information shared.
Financial Performance Highlights • Order Book: • Secured orders worth Rs. 8,054 crores (83% YoY increase) • Record order book of Rs. 54,110 crores • Financial Results: • Consolidated turnover: Rs. 4,407 crores (up 32%) • Gross profit: Rs. 626 crores (up 25%) • PAT: Rs. 174 crores (up 34%) • Standalone revenue: Rs. 3,866 crores (up 29%) • Debt and Cash Flow: Improvements noted, with a focus on construction (98% of revenue).
Project Updates • Treatment Project: • Funding of Rs. 3,833 crores secured; most permissions obtained. • Documentation to be submitted for final approvals within a month. • UP Jal Jeevan Mission Project: • Valued at Rs. 16,500 crores; contributed nearly 30% of turnover in Q1 FY '24. • Future Growth: • Anticipating 20% revenue growth for the fiscal year.
Q&A Session Insights • Order Inflows: • Expecting over ₹20,000 crores in order inflows for FY 2023-2024. • EBITDA Margins: • Slight improvements expected; pressure from pre-COVID projects noted. • Irrigation Projects: • Selective approach due to budget uncertainties. • Sembcorp Arbitration: • Payments expected in installments; some uncertainty regarding delays. • Bidding Pipeline: • Bids valued between Rs. 25,000 to 30,000 crores; cautious approach to future projects. • Smart Metering Orders: • Participation confirmed under RDSS scheme; focus on domestic production.
Additional Discussions • Karnataka Projects: • Slowdown due to government changes; expected normalization soon. • Order Backlog in Andhra Pradesh: • Approximately Rs. 3,400 crores; some projects stalled due to pending payments. • Funding Limits: • Non-fund-based limits: Rs. 1,000 crores; fund-based limits: Rs. 2,200 crores.
Conclusion • R.S. Raju thanked participants and invited further inquiries, emphasizing the company's growth trajectory and strategic focus.
NCC Limited Q4 and FY'23 Earnings Conference Call Summary
Submission Details • Date of submission: June 2, 2023 • Conference call date: May 29, 2023 • Submitted to: National Stock Exchange of India and BSE Limited • Transcript availability: Company website
Financial Performance Highlights • Record Order Book: INR 50,244 crores • Revenue Growth: 35% increase to INR 15,701 crores (consolidated) • Future Goals: 20% growth target for FY 2024, maintaining EBITDA and increasing PAT margins
Key Achievements • Annual Order Inflow: Record of INR 25,895 crores • Debt Reduction: Decreased to INR 974 crores, lowest in 15 years • Dividend Declaration: Record dividend of 110% for FY'23
Q4 Performance • Revenue Growth: 43% increase to INR 4,981 crores • EBITDA Increase: 72% growth • Net Profit: Significant rise, excluding exceptional items
Operational Efficiency • Consistent Growth: 40% revenue increase annually over three years • Standalone Revenue: 35% growth to INR 13,504 crores • Improved Cash Flows: Debt reduced to INR 900 crores, trade receivable days decreased from 97 to 87
Financial Outlook • Debt Reduction Plans: Anticipated decrease by INR 100-200 crores, with further reductions based on project outcomes • Finance Costs: Expected to drop to 3.9-4% from 4.6% • Order Backlog: Includes INR 4,393 crores from the Pachhwara Coal Mining project
Project and Market Insights • Karnataka Exposure: INR 4,000 crores, 8% of total order book • International Business: Nearing closure with remaining exposure in Oman and Mauritius • Pending Orders: INR 3,400 crores in Andhra Pradesh
Credit Rating and Future Projects • Credit Rating Review: Request for midterm review due to financial improvements • Potential Projects: Opportunities in high-speed rail and government schemes • Revenue Guidance: 85-90% from existing orders, 10-15% from new projects
Conclusion • Optimistic Outlook: Confidence in achieving targeted inflows despite challenges • Focus: Emphasis on domestic projects and improving financial standing through better credit ratings.
NCC Limited Q3 FY 2022-23 Earnings Conference Call Summary
Call Details • Date: February 9, 2023 • Transcript Submission: February 15, 2023 • Key Attendees: • R.S. Raju (Director, Projects) • P.V. Vijay Kumar (Vice President, Finance) • Neerad Sharma (Head, Strategy and Investor Relations)
Economic Outlook • Current challenges: Inflation and global growth forecasts. • India's projected growth rate: 6.5% to 7% for FY 2023. • Infrastructure spending as a key economic driver. • NCC's order book: INR 41,862 crores.
Financial Performance • Q3 Highlights: • Orders secured: INR 5,033 crores. • Year-to-date orders: INR 14,367 crores. • Consolidated turnover: INR 3,904 crores (29% increase). • Gross profit margin: Decreased from 16.27% to 15.38%. • EBITDA: INR 376 crores. • Net profit after tax (PAT): INR 157.70 crores (more than doubled).
• Nine-Month Performance: • Revenue: INR 10,660 crores (38% increase). • PAT: INR 418 crores (74% increase). • Standalone revenue: INR 3,370 crores (24% increase). • Debt reduction: From INR 1,985 crores to INR 1,946 crores.
Capital Expenditure and Asset Management • Significant capex: INR 95 crores in Q3, total of INR 243 crores over nine months. • Investment properties: Decreased from INR 263 crores to INR 230 crores. • Trade receivables: Decreased from INR 2,792 crores to INR 2,675 crores.
Operational Updates • Most group companies are debt-free; only NCC Urban has minimal debt. • Improved collection efficiency: Debt collection period reduced from 97 to 91 days. • Collections from Andhra Pradesh projects: INR 122 crores in Q3.
Future Projections and Concerns • Revenue growth outlook: 30% for FY '23. • Margin expectations: Slight increase due to declining commodity prices. • Order inflows: Potential increase to INR 20,000 crores by March '23. • Ongoing investigations related to GST compliance and potential liabilities.
Project Updates • Jal Jeevan Mission Project: 25% executed, aiming for 35-40% by year-end. • Bangalore Metro project: Work halted pending design reviews; total order book of INR 2,167 crores.
Conclusion • Management expressed optimism about growth and profitability. • Focus on managing debt and capital expenditures while addressing operational challenges.