Ref. No.: NCCL/ Regulation 30/2023
Date : August 16, 2023
National Stock Exchange of India Ltd | BSE Limited |
Exchange Plaza, C-1, Block G | Phiroze Jeejeebhoy Towers |
Bandra - Kurla Complex | Dalal Street, |
Bandra (E) | Fort |
MUMBAI - 400 051. | M U M B A I - 400 001. |
Symbol: NCC | Code: 500294 |
Dear Sir(s),
Sub: Submission of Transcript of the audio conference call under Regulation 30&46 of the SEBI (LODR) Regulations, 2015
Please find enclosed herewith the transcript of the earnings audio conference call that took place on August 11, 2023 with analysts discussing the performance & financial results of Q1 of the FY 2023-24. The transcript is also available on the Company's website at https://ncclimited.com/analyst-column.html.
The Transcript includes list of management attendees and the Q&A's, any assents/dissents and open points.
Please note that no unpublished price sensitive information was shared/discussed in the earnings call.
Kindly take the above information on record.
Thanking you,
Yours faithfully
For NCC LIMITED.
SISIRA KUMAR MISHRA
Digitally signed by SISIRA KUMAR MISHRA
Date: 2023.08.16 17:37:49 +05'30'
Sisir K Mishra
Joint Company Secretary
Encl : As above
NCC Limited
(Formerly Nagarjuna Construction company Limited)
CIL: L72200TG1990PLC011146
NCC House, Madhapur, Hyderabad 500 081 T +91 40 2326 8888 F +91 40 23125555 ncclimited.com
"NCC Limited Q1 FY '24 Earnings Conference Call"
August 11, 2023
MANAGEMENT: SHRI. R.S. RAJU - DIRECTOR PROJECTS - NCC
LIMITED
SHRI. SANJAY PUSARLA - EXECUTIVE VICE
PRESIDENT, FINANCE AND ACCOUNTS - NCC LIMITED
SHRI. NEERAD SHARMA - HEAD, STRATEGY AND
INVESTOR RELATIONS - NCC LIMITED
MODERATOR: MR. ASHISH SHAH - JM FINANCIAL INSTITUTIONAL
SECURITIES LIMITED
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NCC Limited | |
August 11, 2023 | |
Moderator: | Ladies and gentlemen, good day, and welcome to the NCC Limited Q1 FY '24 Earnings |
Conference Call hosted by JM Financial Institutional Securities Limited. | |
As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity | |
for you to ask questions after the presentation concludes. Should you need assistance during the | |
conference call, please signal an operator by pressing '*' and then '0' on your touchtone phone. | |
Please note that this conference is being recorded. | |
I now hand the conference over to Mr. Ashish Shah from JM Financial Institutional Securities | |
Limited. Thank you, and over to you, sir. | |
Ashish Shah: | Thank you, Darwin. A very good evening to everyone. On behalf of JM Financial, I welcome |
all of you to the 1st Quarter FY '24 Earnings Conference Call of NCC Limited. | |
Today, we have from the management Shri. R.S. Raju, Director of Projects; Shri. Sanjay Pusarla, | |
Executive Vice President, Finance and Accounts; Shri. Neerad Sharma, Head, Strategy & | |
Investor Relations. | |
So, over to the management for opening remarks and we will follow-up by a Q&A after that. | |
Thank you. | |
R.S. Raju: | Thank you, Mr. Ashish Shah. Good evening, ladies and gentlemen. A warm welcome to all of |
you into the Q1 financial year '24 Investors Conference Call of NCC Limited. | |
The presentation containing the performance of Q1 FY '24 was uploaded on the stock exchange | |
and in our website at around 11 a.m. today. Now, I will take you through the key highlights of | |
the quarters and thereafter we will take you to the questions and answers. | |
So, as usual, the disclaimer before briefing on the Q1. The presentation that we have uploaded | |
on the stock exchange and our website yesterday including the discussions that we will have in | |
this call contains or may contain certain forward-looking statements relating to NCCL business | |
prospects and profitability which are subject to several risk and uncertainties and actual results | |
could materially differ from those in such forward-looking statements. | |
So, before going to the Q1 results, just I will touch about two lines about Indian economy. All | |
of you aware about global economy passing through difficulties, particularly severe inflation, | |
but India has remains as stable despite the global impacts. | |
In the 1st Quarter key performance indicators indicating the sustainable experience in Indian | |
economy, the growth momentum is likely to continue on stable ready crop production, expected | |
normal monsoon, softening of cost of materials and services. So, as seen from the reports, the |
Page 2 of 19
NCC Limited
August 11, 2023
healthy balance sheet of all banks and corporate, supply chain normalization followed by declining in uncertainties conditions and favorable for a continued CAPEX cycle in sectors like infrastructure, power, defense etc.
So, now I will brief the operating and finance performance of NCCL for the Q1 FY '24. This quarter, we believe that the company performed well in major performance parameters. So, as far as order book is concerned, the company secured good amount of orders Rs. 8,054 crores, a growth of 83% over the corresponding quarter the previous year.
The major orders received in this quarter are given in the presentation uploaded in the website. Among those, an order from Haryana International Horticultural Marketing Corporation Limited, an EPC mode value of Rs. 2,199 crores. Second one, State Water and Sanitation Mission, Govt of Uttar Pradesh. So, another one is from Adani, a value of Rs. 1,144 crores, Navi Mumbai International Airport.
So, the order book as of 30th June '23 stands at Rs. 54,110 crores, highest ever recorded. Our order book is well diversified and spread across various states. Right now, we have 31% of orders from UP where both UP and the Central Government given priorities with adequate fund allocations.
So, coming to the operating performance of consol. So, first, I will brief you on the consol performance of Q1 FY '24. This quarter reported a turnover of Rs. 4,407 crores as against 3,351 crores, achieved a growth of 32% over the corresponding quarter previous year.
The gross profit reported as Rs. 626 crores as against 501 crores, a growth of 25%. The GPM reported 14.3% as against 15.1%. The EBITDA reported Rs. 409 crores as against 308 crores, a margin of 9.84% against same margin of 9.27%. The PAT reported as 174 crores against 130 crores, an increase of 34% over the corresponding quarter of the previous year.
If you come to the Group company's performance besides the NCCL, the parent company, in the Group companies, PCMPL has reported more turnover of Rs. 466 crores as against 265 crores in the corresponding quarter. And NCC Urban has reported a turnover 74 crores as against 88 crores. The quarter Group companies turnover reports in this quarter Rs. 541 crores as against 361 crores, a growth of 50% on a year-on-year basis.
PCMPL, this is one company doing the MDO type of business, mine development and operation along with BGR where we have 51% stake, and this company started about five years ago, and it achieved almost whatever required milestones to achieve by this time, all are in place, and accordingly, the production also going smoothly.
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NCC Limited
August 11, 2023
But now some other important milestones like clearances from the forest land and getting the forest land into the cooperation, these are the milestones, and 90% of the these milestones were completed and 10% still remaining, and we expect the handing over of the forest Land by the forest department takes place in couple of months. Once that forest land comes to this one and the total land which are required for the operational project up to 30 years will be in the control of the MDO.
Now come to the standalone financials. On standalone basis, the company reported a revenue of 3,866 crores against 2,990 crores, a growth of 29%. The revenue increased primarily due to more revenue from the Buildings and Electrical division which had done good progress in UP Jal Jeevan Mission projects.
The gross profit reported as Rs. 588 crores as against 465 crores, a growth of 27%. Now the gross profit margin this quarter is 15.3% against 15.7%. But here, there is a dip of 0.4% in the GPM, but effectively, there is no change in GPM in Q1 compared to the corresponding quarter previous year. Once we exclude the one-time item of claim, Rs. 11 crores accounted in the Q1 of previous year.
The company has posted an EBITDA of 381 crores against 281 crores registering a growth of 35%. In terms of percentage, the EBITDA is 9.9% against 9.5% of the corresponding quarter previous year. So, there is a 0.4% increase is reported, the increase in EBITDA primarily on account of the increase in revenue.
PAT reported as Rs. 162 crores against 120 crores, an increase of 35% over the corresponding quarter of the previous year. So, the net profit margin reported is 4.2% against 4%, and EPS reported as 2.58% against 1.97%. So, as far as gross margin is concerned, the input prices, if you see in the Q1, it is observed that there is a reduction in some of the input prices, but still some of the products, the decline is not happen and some products, some input prices like aggregates, sand, and this cement and this ready mix concrete, some increase still is there in those projects, and we believe that the decline whatever happened can be seen more in the Q2 since the decline gradually happen, not at the beginning of the quarter.
Just come to the cash flows, on standalone basis, the cash flows used in the operating activities is Rs. 123 crores against 521 crores on year-on-year basis. The net cash flows used in the investing activity is 37 crores against 111 crores on year-on-year. So, the net cash flows from financial activity is 203 crores against 478 crores year-on-year.
You may have observed that there is significant improvement in both operating cash flows and investing cash flows, which results in a reduction in debt year-on-year and the reduction in working capital days. So, that is about operating performance.
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NCC Limited published this content on 16 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2023 12:58:03 UTC.