NBCC (India) Limited (534309) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q4 FY '21 Earnings Conference Call of NBCC (India) Limited, hosted by Prabhudas Lilladher Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Viral Shah from Prabhudas Lilladher Private Limited. Thank you, and over to you, sir.

Thank you. Good afternoon, everyone. I welcome all the participants to the 4Q results conference call of NBCC (India) Limited. We have with us Mr. P. K. Gupta, Chairman and Managing Director; Mrs. B.K. Sokhey, Director of Finance; Shri. Rajendra Chaudhari, Senior Executive Director, Engineering; Mr. Pawan Kumar Gupta, Executive Director, Engineering; Mr. Pradeep Sharma, GM, Business Development. We would commence the call with the opening remarks from Mr. P. K. Gupta to give an overview of the company's performance. This would be followed by a question-and-answer session. Over to you, sir, and thank you.

Good afternoon, everybody. Though the last year, there was effect of pandemic all over and all business sector and construction sector was affected very badly because of the labor issues and material supply issues. But still, I'm very happy to inform you that we have done fairly well. In profit after tax, which is a major parameter, we have registered a growth of more than 150% on a year-to-year basis and more than 60% in both quarter-on-quarter to quarter basis. Last year, we have added contracts worth around INR 12,000 crore, which are likely to result in turnover in the current financial year. We also -- on consolidated level with our subsidiary, we secured a business of around INR 8,500 crore in the last financial year. We also were able to sell -- though the real estate market is very sluggish, but we were able to sell more than INR 1,600 crore of -- worth of commercial property in our main flagship projects of World Trade Center in Nauroji Nagar. The overall turnover revenue from operations is almost same as last year in spite of the effect of -- previous effect of pandemic during first 4, 5 months of the last financial year. So overall, the progress has been reasonable. The order book stands as of now to INR 62,000 crore. And in the current year, we have awarded tenders worth INR 1,200 crore already, and we are in the process of finalizing tender for another INR 1,200 crore, which are in various stages of tendering. So this is in nutshell about the performance of last year and a little bit about current year. Over to the participants for any questions.

[Operator Instructions] The first question is from the line of [ Vikas Srivastav ], an Individual Investor.

I have 3 questions. The first is, are you considering a constitutional challenge to the voting law in which we have lost to Suraksha by a minor margin? Second, I wanted your -- a little bit of a projection on both -- on your flagship Nauroji project in terms of sales? And third, the outlook on the value and your current inventory of residential and commercial property other than Nauroji, and what are the prospects of sales? And how is the market looking in this area?

Regarding the Jaypee, the voting has been as per the laid-down guidelines of the act and NCLT and NCLAT. Though we have unfortunately lost by a very, very small margin, though the number of homebuyers that voted for NBCC is more than those voted for Suraksha. So just because of defense by 1 party, SREI Infrastructure, and that had a value of 0.12%, we were voted against, and we have lost the bid. But all the proceedings have been as per the law and as per laid-down procedures. So there is no scope of any challenge to the proceedings. As far as the World Trade Center, Nauroji Nagar, sale is concerned, last year, we were able to sell INR 1,600 crore worth of property. So at least the same value we expect during the current year. Unfortunately, first 2 months were lost in pandemic. So now we expect it to pick up. And we expect to sell INR 1,600 crore to INR 2,000 crore worth of property at least during the current financial year. Regarding our other commercial and real estate properties, we are selling Sector 89 NBCC Heights, Gurgaon. We have been able to sell more than 100 flats during the last year, and this year also the sales have started. So we plan to wind up -- around 55 flats are unsold in Sector 89 NBCC Heights, and we plan to wind up that properly during the current financial year. Our Patna property is also sold out, and Bhubaneswar residential property is also sold out. So if there is no effect of pandemic from now onwards, we plan the real estate sales to pick up.

The line of the participant got disconnected. We'll move to the next question, which is from the line of [ Kanishta Sarkar ], an Individual Investor.

See, I will give you a couple of feedback, and I hope it is taken in the right spirit. I'm a shareholder, but not a very happy one. I'll tell you the reasons why. First of all, there is very limited media coverage of NBCC. Your management doesn't come in terms of explaining. We need to wait for the quarterly -- these meetings to get an update. Now it's very frustrating when you open up quarterly meeting with just an address of 2 minutes without any insight into what's happening with such a dynamic environment. Rather than just listening about what is happening on COVID, it would be better if you can give us a better insight, some strategic inputs about the company. Because as a shareholder, we are more inclined to understand what is the strategic initiative the company is taking because the last couple of years, we have not done anything in terms of wealth creation. I think you would be taking it in the right spirit.

No, no, no. I'll reply towards the strategic initiative. Our feeling was that the questions will come and we'll answer accordingly. Let me...

No. So -- let me -- sir, just 1 second. I have not completed yet. I just -- that's point number one. Point number two, what I'm trying to put here is that there are investors who come on a call and it is -- it would be better if next time, I would request and tell you put a little more insights, bring in some information, put up a progress in front, so that we are energized listening to the conversation. It should not be just because it is done for the heck of it, and that is where -- that's why I'm bit critical. So I hope it is taken in the right spirit.

As far as our strategic initiatives are concerned, during last year and current financial year, so we had -- we were banking on Jaypee. We have lost it, but not everything is lost. Currently, we are focusing majorly on the international business. We have signed an agreement with the Government of Maldives for construction of their social housing project. That will be worth around INR 1,000 crore, and it will be financed through buyer's credit from EXIM Bank of India. So this -- the agreement has already been signed and work is likely to be taken up in another 1 month or so. And we are focusing on other international business also. Just recently, we have got a letter for expression of interest from 2 countries in Africa, one is Burundi -- 2 places in Burundi, in fact. And the project is worth INR 1,100 crore, and they will appointing us as project management consultant of their parliamentary building and several other buildings. So we are submitting the offers. They have shortlisted 3 parties only, and NBCC is 1 of them. That is another area we are entering into. Third is that we are entering into the airport sector, which is a new sector for us. A lot of -- as announced by Honorable Prime Minister, we -- there would be around more than 100 new airports and upgradation of airports in the country. And most of them will be done through private sector through PPP mode. And they will need the services of independent engineer for this project. We have already been invited by Airport Authority of India to quote for 3 airport projects that have been awarded to M/s Adani. These are Trivandrum, Jaipur and Guwahati. We are submitting our bid for -- in fact, for 1 project, we have already submitted our bid. And for 2 more projects, we are submitting our bid for independent engineer services. And there will be a lot of business in this sector. So this is another strategic initiative that we have taken, a new area of business that we are entering into. And the Central Warehousing Corporation has invited us, in fact, they have given us a counter offer, which we have accepted. That is for the construction of silos for CWC all over the country. So that work will be starting soon. They've already accepted our offer. So this work was in fact awarded to some other party earlier, but they failed to execute, so they have come to us, and we'll be starting this work shortly. So these are the new areas of business that we are entering in addition to the business of PMC and EPC and real estate that we are already handling.

The next question is from the line of Siddharth Rajpurohit from YES SECURITIES.

Am I audible?

Yes.

Yes. Sir, when will Sarojini Nagar construction start, sir?

Sarojini Nagar construction has already started. One project of residential quarter that is in progress and 1 tender for commercial projects near Sarojini Nagar Metro Station that has been awarded recently, and that will start soon. So project of Sarojini Nagar has already, it's in...

So all the 3 projects are now -- all the 3 regions, Nauroji Nagar, Netaji Nagar and Sarojini Nagar are under construction?

Yes. Netaji Nagar, also we awarded 1 contract worth INR 1,400 crore and work is in progress.

Okay. And sir, what could be the quarterly revenue or the execution expected from this project, sir? And how would it ramp up?

So it will be around 100 -- more than INR 100 crore per month. So quarterly basis, INR 300 crore.

Okay. And this will be -- means, would ramp up to at peak level how much, sir? And by when?

We'll be awarding more contracts of Sarojini Nagar and Netaji Nagar currently. So not just these 3 projects. This is the average that I have told. And when we award more contracts, it will increase further.

Okay. And sir, do you see any delay in construction because of sale in -- slower sales in the commercial properties? If there is a slower-than-expected sales in commercial properties, what is the plan B, sir?

Look, sales during last year has been slower due to pandemic. But now since the pandemic is over, we plan the sales to pick up. So a lot depends upon the sale of commercial properties, but we expect the sales to pickup. But even when the sales were low, we were able to sell INR 1,600 crore worth of property during the last financial year in Nauroji Nagar World Trade Center.

So execution will largely depend on the monetization of the properties? It will be largely directly correlated, right, sir?

Yes.

Okay. And sir, what is the current value of ready inventory in the -- ready real estate inventory in the total inventory, sir?

You are talking about the real estate inventory of NBCC, it is totaling to around INR 1,600 crore.

The ready real estate inventory, which was INR 400 crore, I think, last quarter.

No. That includes land and ready -- completed projects are around INR 800 crore value worth.

Okay. And what is the value of land, ma'am?

Land is around INR 600 crore, INR 640 crore.

So this value is, ma'am, market value or the book value?

This is the book value. And definitely, the market sale value will be higher, much higher.

Any rough estimate, ma'am, what would be the value?

If I'll consider, I'll consider it to be in tune of INR 4,000 crore, is it?

Total value, market value...

Yes, yes. Whenever we will sell our properties after either by constructing or the completed property, we expect the value of around INR 4,000 crore from our inventory of INR 1,600 crore.

Okay. So that is total monetizable...

Yes, yes, yes.

Okay. And ma'am, the book -- the order book size of INR 62,000 crores is on stand-alone basis, right?

Yes. Yes.

So what is the order size of HSCC and HSCL?

HSCC, it's about INR 4,800 crore and HSCL is about INR 5,000 crore.

One last question, sir. What is your revenue guidance for FY '22 and margin guidance, sir?

We expect around INR 7,000 crore during the financial year '21-'22.

And margin, sir?

Margins will be higher than last year approximately 2% to 3%.

Sorry, sir? It would be how much, sir?

Operating margin would be around 2%. Operating margin...

Operating margin will be between 2% to 3% and total income can be around 4% to 5% of the turnover.

So this is on stand-alone basis, right, sir?

This is standalone basis.

Yes. Yes.

The next question is from the line of Binod Modi from Reliance Securities.

Sir, my question again pertains to your guidance itself. So I remember, I mean, in the mid of February, when we had third quarter conference, you said you had given guidance of almost INR 5,500 crore. We ended with almost INR 4,900 crore, so there is a vast gap between what you said and what you delivered in just a period of 1 month, 1.5 months. So that is 1. And even the guidance that you have given of INR 7,000 crore as against the earlier guidance of INR 8,000 crore despite the fact that lockdown has already eased out and construction activities for most of the players are picking up significantly, we have still toned down our guidance. So just wanted to understand the reason being, sir?

First 2 months of this year, there has been a sharp effect of the pandemic. The construction work were very badly affected in April and May. So for current financial year, this is the reason. Now the construction works are picking up. But during June also, they were affected. Now we have reached almost to the normal level, about 90% of that.

So essentially, sir, so far in the month of April and May, we would have lost around INR 1,000 crore of revenue. So that's not going to be recovered. That is what you were revealing, right?

April, May and June including because June also has been slow. Now it's picking up. Now the labor has come back and supplies have been restored about a week back. Now the works are picking up.

Got it, sir. And my another question about your ECL provision, sir. If I look at after 2 to 3 quarters, we see significant amount being booked right from the impairment side. So just wanted to understand as per your rough calculation might be on whatever is there, what would be -- is there any thing that you estimate that going in future, even in FY '22, there might be incremental this provisions that we might be booking? Because I understand looking at your press release, it's clearly mentioned, there are a number of investments where it appears there has been some sort of litigations going on. So I just wanted to understand your thoughts, sir.

Any specific question on related to any particular inventory or you are asking in general?

No, ma'am. Even in -- I'm not pointing to any specific asset, but I remember during quarter 3 FY '21, we had a con call that time also we had INR 1,200, INR 1,300 crore kind of ECL provisions and you said most of have been booked -- provided in this quarter itself. But again, in this quarter, we found. So I just wanted to understand, is there any part of investments still lying in our book where the impairment can possibly happen going forward?

No. Actually, if you will go through our annual results, you will find that ECL provisions has come down drastically. It is only because of the realizations need by the company. Yes, in the initial quarter, we have booked around at least INR 3 crores per quarter. And in the last quarter only, we have booked some higher amount, though we have projected it to the extent of only INR 3 crores, but sometimes it happens. But if you go through the last year's results, it has come down drastically. So rather we could be able to achieve it on that front by getting a realization of our deals.

Got it. And last, sir, my question pertains to about your international business that you are pursuing. It's very good that you are pursuing international business. But given the fact that we already have a significant large order book in domestic more than INR 62,000 crore, and we have been executing just, I mean, portion of that, right? So don't you think that instead of focusing more on these, I mean, the domestic projects where that would have been more beneficial rather than focusing on international markets? So just to understand your thought, sir. That's all.

Look, both are independent line of business, foreign business also gives good profit as normally, the margins are higher in foreign business that also gives us good visibility to the company. As far as domestic business is concerned, a lot of our order book could not be converted to the revenue because of the sluggish sale of real estate, particularly -- that is the reason this conversion of order book to the revenue has been slow. But if there is no third wave or the pandemic is over, we expect that the commercial property will pick up, and our revenue from this order book will increase. But we cannot lose site of international business because that gives us a good visibility and good margin.

The next question is from the line of Shivang Joshi from Prabhudas Lilladher.

Congratulations on good numbers. Sir, I wanted to understand, you discussed -- you just said that you're looking at certain airport projects. So I wanted to understand what is the kind of work that we are looking at those airport projects? What would be roughly the ticket size of those projects?

They are independent engineered services because the work is being done by concessionaire on PPP mode. So -- it will be independent engineering services, who will be certifying the work on behalf of Airport Authority of India. That is as per the concessionaire agreement that AAI has signed with the concessionaire. So the ticket size is not very high, but the margins are good in this line of business. We'll have to -- we'll be posting our engineers on site and for certification of the quality, certification of the designs and related issues.

From the overall construction -- I mean, overall, the project cost of the airport, what component is the independent engineer services? Could you give a percentage, what revenue can accrue to NBCC?

The cost of airport -- Jaipur is costing around INR 1,700 crore, Guwahati is costing around INR 1,400 crore and Trivandrum is costing around INR 500 crore. That is the value of the work to be executed. But our independent engineering services will be of a much lower value. That could be in the range of INR 10 crore to INR 15 crore, but the margins in this are good and a lot of airports are coming up. So around 100 airports are likely to come up. So the total business volume will be quite good. And if governments award PMC work of the airport since we'll develop the expertise, we can take up the PMC of the work -- of the airport being executed by government sector. There could be some airports in future, which are not awarded to private parties on PPP, and government decides to take them up by their own funds. So we can do the PMC of those airports. So that is another advantage in the future. So that can be quite high value because the turnover will be the value of the construction. But independent engineer services, the turnover is almost...

It is a small component.

Consultancy value.

Got it, sir. And sir, my second question would be, our -- most of our contracts are fixed in nature, fixed price in nature. So what is the impact on our margins, considering the steep rise in commodity prices that we have seen in the last 6 months?

We are having a provision of escalation with the client. And whatever escalation that we have to pay to the contractor, that is charged to the client. Our margins remain the same.

Is it complete pass-through or there are some gaps in the same which NBCC will have to bear?

No. NBCC will not have to bear any gap.

Okay. That's fair. Certain bookkeeping questions, sir. What is the cumulative sales number from Nauroji Nagar project, if you could say? You said last year, we sold INR 1,600 crores cumulatively.

INR 3,500 crore worth of property we have sold till now.

Okay. And this year, we are expecting another...

INR 2,000 crore during the current financial year.

Okay. And sir, from our Amrapali projects, what are the revenues that we expect in FY '22?

Amrapali project during the last financial year, we had a revenue of INR 1,073 crore. So this year, we are expecting around INR 2,000 crore from Amrapali.

Okay. Okay. And lastly, as you said that our domestic order book is slightly elongated because of the sluggish behavior of the real estate in India. Sir, could you tell us what -- as of now, what is the average execution cycle of the order book, the huge order book that we have on hand?

By when this will be...

By when we expect it to be completed -- yes.

If the real estate market comes up, then with the whole order book can be adjusted in the next 4 years.

4 years?

If we get the revenue from sales, if the sales pick up, then we can execute it in next 4 years.

The next question is from the line of Parvez Akhtar Qazi from Edelweiss Securities.

Yes. Good afternoon, sir. [Technical Difficulty]

Sorry, the line got disconnected of the participant. We'll move to the next question, which is from the line of [ Vikas Srivastav ], an Individual Investor.

Yes. Just wanted to know about -- I heard that the residential finished inventory is about INR 600 crores. I just wanted a feel of -- I do believe residential inventory of Amrapali flats are selling online. What is your expectation of, say, the current year are you more bullish on the sale of residential versus commericial, which is Nauroji Nagar. Of course, there are different markets and the numbers are substantial. I just wanted to learn what is the plan? [Technical Difficulty] market to sale? Are you holding back on the residential finished inventory, not land?

Could not understand clearly your question. Can you repeat?

I was told that there is a residential finished inventory of INR 600 crores.

Yes.

So I wanted to know, is this all on the block? Is it all up for sale? What has the response been considering that one does hear that the residential real estate market has really picked up and prices have gone up?

In fact, we are opening the sales part by part. Our Gurgaon property NBCC Heights is on sale. As I told, we sold around 100 flats during the last year, and there are 55 flats left that we plan to sell during the current financial year. Our Patna property has been sold. There are 2 flats left, that also we plan to wind up during the current financial year. Our Bhubaneswar and Kolkata commercial properties, they are also open for sale. Our Lucknow commercial properties is also open for sale. So a few projects we have not opened for sale, that will be opening very soon. But most of our property is already open for sale.

And what is the response, like how is it looking? Is it -- can you see increase in demand whatever little initial -- are you looking at an increase in demand, a better market for this property? How is it looking to you?

Yes. Last year, the sale of commercial property, particularly, has been sluggish because the malls and offices have been closed and people were working from home. But...

So out of the INR 600 crores finished, how much is residential and how much is commercial?

It's about 50-50.

The next question is from the line of Rohit from Antique Stockbroking.

Sir, my first question is on the work that you have awarded to the contractor. What is that amount? Last quarter, I believe, it was somewhere around INR 200 crore.

No. Last year was around INR 12,000 crore for NBCC. So you see we have added INR 1,200 crore and another INR 1,200 crore worth of tenders are in pipeline.

No, sir. My question is the cumulative works that we have awarded through contractor from the existing order backlog, that is INR 62,000 crore, how much we have awarded to the contractors?

Running projects are around INR 18,000 crore.

Okay. INR 18,000 crores, we have awarded to the contractors. And of which you are hopeful to do INR 7,000 crores in FY '22?

Yes. Yes.

Sir, what is the labor availability? As of now when you say improved, what do you see that number?

Our total requirement of labor combined on our -- all projects is around 60,000. And currently, in fact, during this second wave, it went down to around 17,000, 18,000 only. So that is about 35%. Now it has picked up where we have around 75% to 80% labor already available on our projects. And it's picking up, and I think in a fortnight, we'll have full quorum of labor available to us.

Sure, sir. Sir, I understand that INR 62,000 crore was divided into INR 35,000 crore of redevelopment projects and INR 27,000 crore is this EPC projects. So this INR 35,000 crore of redevelopment projects how much -- hello?

INR 7,000 crore in PMC.

Yes. So how much has been awarded to the contractors in this INR 35,000 crore component? What is the redevelopment colonies?

Redevelopment colonies, it's around INR 5,000 crore have been awarded.

Sure, sir. Sure, sir. And one bookkeeping questions about this other income. We have a INR 160 crore or maybe somewhere around that range through the feed money. The feed money, what is the feed money as of now you have? And how much is the dividend income that you booked from it, every year or maybe every quarter?

Yes. Feed money, so far, we have invested in our redevelopment -- 7 redevelopment colonies amounting to INR 900 crore, on which we have booked the income of INR 100 crore towards the interest as per our MoU with the Ministry. And total dividend booked during this year is INR 23 crore as compared to the INR 70 crore booked last year in the other income.

Okay. So madam, this is more like an accounting booking, right? Technically speaking, there is no cash conversion.

No. We have received the interest amount also from our Ministry very recently to the extent of INR 60 crore. Yes.

Okay. Okay. And finally, madam, in terms of the land bank monetization, I mean, not land bank redevelopment projects' monetization, what is the pipeline that we are targeting? Because we have, if I'm not mistaken, of the INR 350 billion, we were like somewhere at INR 5,000-odd crore, right?

Yes.

So what is the target this year? Like what is that amount going to be like?

Because we are focusing mainly on Bhubaneswar commercial project this year and Lucknow commercial project as well as Patna residential project, and definitely, Kochi also, sir, we will...

No, no. I'm talking about the redevelopment projects, ma'am, the redevelopment projects INR 35,000 crore, of which you will have the 3 colonies...

Okay. Redevelopment. Okay.

A lot depends upon the sale of commercial properties. But we have planned to allot at least INR 5,000 crore worth of tenders among the redevelopment projects. But it can go up or it can go down depending on the sale of commercial projects because the money has to come from the sales.

The next question is from the line of Siddharth Rajpurohit from YES SECURITIES.

Sir, in the total cash balance, sir, what will be the bank balance held on behalf of Ministry?

Please repeat your question?

In the total cash balance, what will be the balance held on behalf of the Ministry?

It is totaling to INR 4,800 crores in respect of all the subsidiaries, including the holding NBCC. And if you talk about on a stand-alone basis, it is around INR 1,800 crores.

Okay. And then just to understand more the business well. Why do we have such long payable days, which is close to 140, 150 days?

There are certain dues which are pending with the ESIC project as well as certain home -- projects of the Ministry of Home Affairs and other clients also and NTPC and BHEL. We have been trying very hard to get those dues realized by holding the meeting and -- with the clients as well as through Ministry also. We are getting the help of the Ministry also in taking the dues realized. Yes.

Okay. In our order book, ma'am, means, last quarter, we have removed a lot of nonmoving projects. So are there any more nonmoving projects that we can reduce?

No. We don't have any nonmoving projects as of now. Hardly maybe 2, 3 projects are there, which are nonmoving. Otherwise, the -- all our projects are in progress. Whatever tenders we have awarded, they are in progress.

Okay. Okay. And sir, of the INR 62,000 crore order book, what is the share of pure EPC?

EPC contract?

Yes. EPC contract value?

EPC contract is about -- around INR 1,000 crore only.

Okay. Only INR 1,000 crore. Okay.

The next question is from the line of Parvez Akhtar Qazi from Edelweiss Securities.

Two questions from my side. First is, what is the total quantum of projects that we intend to award the contractors in the current fiscal? And second, if you could repeat the quantum of total monetization that has happened till date in Nauroji Nagar, cumulative till date?

Could you repeat your question?

Sir, 2 questions. One, what is the total quantum of projects that we intend to award to contractors in the current year? As we said, we awarded INR 12,000 crore last year, what is the target for FY '22? And your second is...

And second?

Second question?

Second is cumulatively, how much have we sold in Nauroji Nagar till date, cumulative?

Okay. I'll answer your questions. I'll answer the second question, first. We have sold around INR 3,500 crore worth of Nauroji Nagar property till now. And as far as the tenders are concerned, we hope to award INR 10,000 crore to INR 12,000 crore worth of tenders during the current financial year.

[Operator Instructions] The next question is from the line of [ Sagar Parekh ] from [ Deep Financial Consultants ].

My question is only on the consolidated guidance. So you have given the stand-alone revenue guidance of INR 7,000 crores with 2% to 3% operating margin. What would be the consolidated guidance for FY '22?

Consolidate would be about INR 10,000 crore.

And margins?

Margin will remain the same, 2% to 3% operating and 4% to 5% overall.

So 4% to 5% overall means you are including other income, right, in 4% to 5%...

Yes. We are including other income.

Okay. Okay. Got it. So basically, you're expecting INR 3,000 crores from 2 subsidiaries. And how much was the -- sorry, FY '21 sales number from these 2 subsidiaries put together?

FY '21 sales was around INR 1,600 crores.

So you're expecting INR 1,600 crore to go to INR 3,000 crore?

Yes. Because HSCL was very badly affected because they have major business in Northeast and Eastern parts because we've had severe restrictions, the restrictions are more than the other parts of the country. So here, business was more badly affected.

The next question is from the line of [ Atul Dwivedi ] from [ NBCC ].

Yes. My question is, right now, we have INR 62,000 crore order book, so if we expect, let's say, 20%, 25% growth per year, so it will take around 5 to 6 years, if I'm not wrong. So how we will overcome?

Actually, our main order book that is not getting monetized is redevelopment work. As I told earlier also, it depends a lot on the sale of the commercial property. And since the pandemic is over, if there is no third wave or the third wave is also over, then we expect the sale of commercial property to pick up because right now the property is already picking up. So we expect...

Sir, my question is different. My question is if we have a INR 62,000 crore order book right now, so in the next 2, 3 years, if we add some more maybe INR 10,000 crore, INR 15,000 crore, so how we can finish this if we grow at like 20% every year? I mean we need at least 30% to 40% yearly growth every year for next 5 years, then we can finish this as soon as possible.

Look, we can achieve that growth. If we are able to sell commercial property, we can achieve that growth.

Okay. Okay. Means right now, we will get money, we have the capacity to finish -- I mean to grow at like...

We have the capacity to tender out and execute...

Okay. So we can expect 30%, 40% growth if everything is normal next 2, 3 years.

Yes.

The next question is from the line of Pankaj Kumar from Kotak Securities.

Sir, my question is regarding this cumulative project award that we have done till now out of the INR 62,000 crore order book that we have. So you said around INR 18,000 crore of worth we have awarded out of this INR 62,000 crore. So in the last quarter call, we stated about achieving this to around INR 28,000 crore to INR 30,000 crore by end of FY '21. So I was just checking, have we canceled any award -- any project that we have awarded? Just wanted to reconcile this number.

No, no. We have not canceled any projects that has been awarded. This INR 18,000 crore is the value worth after reducing the turnover, after reducing the work that has been executed. So that could be little bit different.

Yes. So that is INR 2,000 crore, roughly INR 2,000 crore.

Newly awarded work plus the balance left out of the work in progress. Suppose I awarded a contract of INR 800 crore and INR 300 crore worth work has been executed, so I'm counting only INR 500 crores.

Okay. And sir, secondly, on this international side, you said now we are focusing on that. So to what scale that we can achieve in the international business? What percent of your order book or revenue that you would target in, say, over a longer period?

International business I told in Maldives, we are -- we have already signed an agreement. The project is worth INR 1,000 crore, and that is one work. And in Burundi, we are -- we'll be quoting for PMC for a project which is worth INR 1,100 crores. We are not sure whether we'll get it on -- means only our margin has turnover or the total work has turnover, but the value of the project is INR 1,100 crore. So...

So where do you see the international business out of your total order book, you say, in next 4, 5 years? Will it be a significant portion or it will be, say, less than 10%?

It will not be -- means, it will be 5% to 10%. That is what we are targeting 5% to 10% of international business.

And any other redevelopment project in Delhi that we see in, say, next 1 year coming for tender?

In fact, Delhi Transport Corporation last year awarded us 4 sites for redevelopment. These are one in Vasant Vihar depot; Hari Nagar and -- 4 sites are there. So their design is being taken up. So that would be coming up for execution, maybe at the end of the current financial year or around...

What is the size of this thing?

So total is around INR 3,000 crore.

INR 3,000 crore. And just last question is what is the order inflows that we are targeting for the FY '22?

Order value target is INR 8,000 crore.

INR 8,000 crore of new projects.

Ladies and gentlemen, as this was the last question for today, I would now like to hand the conference over to the management for closing comments.

Thank you very much all the investors and shareholders listening to us. So though there has been some setback due to the pandemic that has been all over and affected the construction sector also very badly. But we hope the future will be bright because even in pandemic, we were able to maintain the figures to the level of last year and some of the figures have -- like PAT has improved drastically. So the current year and future I hope will be bright, and we'll be able to absorb all the order book and take up further redevelopment and PMC work and expand our international business. So thank you very much.

Thank you. On behalf of Prabhudas Lilladher Private Limited that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Thank you.