National Building Construction Corporation

Co repre by Anoop Kumar Mittal, CMD & Yogesh J P Sharma, CGM (Engineering).Key takeaways by Capital Mkt
Order book as end of Sep[ 2015 stood at about Rs 30000 crore and of which real estate order book is Rs 1500 crore, EPC order book is about Rs 1000 crore and outstanding redevelopment order book is Rs 3500 crore and balance are PMC orders. However including DDA work, the order book is currently about Rs 40000 crore. The company expects to close the fiscal with an order book (excluding DDA work) of Rs 40000 crore.
Of the order intake target of Rs 10000-15000 crore for FY16, the company has booked orders worth about Rs 5000 crore in H1FY16 and expects another Rs 5000-10000 crore in H2FY16.
Now seven colonies which are next to each other is to be redeveloped compared to earlier decision of redevelopment of 6 colonies. Of which seven colonies the company will get redevelopment work for 4 colonies and balance will be given to CPWD. The seven colonies that are to be redeveloped are Narojinagar, Netajinagar, Sarojinagar, Thiagarajanagar, Kastubanagar, Srinivaspuri and Mohamadpur. Expects the government approval to come by March 2016 and the company will be ready to commence work by Dec 2016. And the work has to be completed over 5 years. Given the total cost being Rs 20000 crore this will give annual revenue of about Rs 4000 crore over next 5 years.Expect revenue for FY16 to grow by 25%.
The company continues to see strong orders inflow for PMC business as the company continues to enjoy strong confidence of Central and state government agencies.In Oman, the company could get couple of projects. Total economy and infra development has come down by 50%.Sales in Kidwainagar project will not go to real estate. The PMC charges will be accounted in PMC business. Sales from Kidwainagar are about Rs 350 crore.
Sales accounted under Real estate is only from projects where the company is investing money. In redevelopment business the company gets only PMC charges. In Q2FY16 real-estate sales revenue come from sale of Okhla commercial space and some flats in Bhubaneswar and Patna have also sold in Q2FY15.Okhla commercial real estate more than 50% is sold and currently sold out all office space and out of total space left with 2/3 floors of retail area which will be converted into office area.