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

Good morning, ladies and gentlemen. I'm Madhuri, moderator for the conference call. Welcome to NBCC Q2 FY '24 Results Conference Call. [Operator Instructions] Please note, this conference is recorded. I would now like to hand over the floor to Mr. Dhananjay Mishra. Over to you, sir.

Thank you, Madhuri. Good morning. Welcome to you all for Q2 FY '24 Results Conference Call of NBCC Limited. We are ready to host the management of NBCC Limited. From the management side, we have Shri K.P. Mahadevaswamy, Chairman cum Managing Director; Smt. B.K. Sokhey, Director of Finance; Shri Saleem Ahmad, Director of Projects, Shri Rajendra Chaudhari, Senior Executive Director, Engineering; Smt. Reshma Dudani, Executive Director, Engineering; and also Investor Relations Head, Balkishan Singla. So now I hand over the call to the management to give initial remark on results and current business outlook. Over to you, Sir.

Good morning. Good morning to all. I'm thankful to Government of India; you, that is investors, shareholders for giving me an opportunity to serve as CMD NBCC India Limited. First of all, I'm giving you -- thank you to all the shareholders, and particularly you, investors, whose strong belief in NBCC has helped us to climb the share price, INR 72.5 few days back and this place was before 5 years. Even in February, when I took the responsibility of Director Commercial, it was around INR 35, and now it is around double. And I assure you as a CMD of this company, in coming years, our performance will elevate multifold. Operation and execution. In operation and execution, we have already achieved more than 72% PBT half yearly basis as compared to last year. Even this year, we have achieved around INR 4,000 crores. And we shall achieve turnover, that is turnover, more than INR 7,000 crores in next 6 months, totaling of around INR 11,000 crore. And I have confidence on this, some of the parameter indicators, which I am sharing for you getting this confidence. In last 6 months, INR 4,400 crores work awarded, which shall support to achieve balanced target of turnover. The project having value of around INR 1,800 crores whose Bhoomi Poojan done and shall be constructed within 24 months through advanced construction technology. In the next 1 week, similarly, another advanced technology for precast technology, that is neutral technology, shall be used in construction of around INR 1,500 crores worth, which shall be started in this month only. The completion period is 24 months. This is for redevelopment of 7 GPRAs. The tender gets awarded value in next 2 months, around INR 2,000 crores, out of which target of INR 5,300 crores in coming quarters also. We are also targeting to achieve excellent ratings so that NBCC regain top position before COVID era as per MoU parameters. When it comes to solving problems of stalled projects, NBCC is the first who solved the Amrapali's best buyers out of total more than 4.2 lakh of such investors in major metro cities and particularly Delhi and NCR. There is a say that, give the control to private company when PSU don't work like Air India, it must revive, but here, we turn the table. The biggest builder of NCR failed to deliver the home buyers to even last 10 years, we delivered the homes -- around 15,000 home buyers in just 3 years and we shall deliver another 20,000 before March 2025. When it comes to selling of the spoiled project inventories carrying bad names that is Amrapali, we sold INR 1,400 -- INR 1,300 crores inventory in last 6 months, which is more than last complete year sale of INR 1,331 crores. And I'm sure we'll sell remaining inventory that is INR 1,600 crores Amrapali flats in next 2 quarters. This model shall be replicated in NCR and Mumbai, who is facing such big problems primarily. When it comes to selling of commercial unsold inventory after its construction, very probably, we can share that the last 6 months, we sold INR 2,650 crores commercial space that is in World Trade Center, which is more than the sale of last year, which is INR 2,024 crores. Before March '24, we'll be able to sell remaining units after its construction. And I'm also confident that we will fetch around INR 200 crores to INR 300 crores real estate inventory by selling all available unsold inventory pan-India basis that is owned by NBCC. We are also expanding the real estate sector in 2-tier cities. Regarding our subsidiaries, HSCC, HSCL and NSL. When it comes to performance, our subsidiary, HSCC, HSCL, NSL are performing well and I assure you the performance shall be better in coming years. Business development. When it comes to business development, NBCC already achieved -- secured INR 7,100 crores business in last 6 months, which is more than last year business achievement of INR 6,400 -- INR 6,500 crores, and we are comfortable to achieve another INR 10,000 crores during this financial year. Redevelopment. It is fair to say that NBCC established in reliable construction PSU for redevelopment work after delivering Moti Bagh, Kidwai Nagar, WTC through different models of development. Even Bharat Mandapam is also developed after demolition of old structures. G20 was organized there where an international level of appreciation we gained. WHO headquarter, another such kind of work, recently 11 countries' health ministers attended the plantation ceremony in the presence of honorable health ministers. Kerala Housing Board is another variety of redevelopment model. This model shall be replicated for PSUs across pan-India and more than 3,000 acres of land parcel they have in all major cities. Step in overseas. We already stepped up concrete foot in overseas, particularly African countries, Maldives, Mauritius. The social housing work is in full swing in Maldives. We are hoping that we'll tap some business in Arabia and Africa in coming months. Technology. We are using advanced construction technology in housing works in India as well as in overseas. This has not only speed up the progress, but improves quality at the highest level. This shall also reduce much more dependence on labor workforce. NBCC is also working on top to put place some 3D printing technology constructions for better and quicker constructions. Composite structures will also be done in small level by NBCC, but it's exclusively HSCL has unique presence in steel infrastructure development. Similarly, HSCC is exclusively in hospital sector, so currently handling 3 to 6 AIIMS of India -- across India. Even NBCC, very strong presence in hospital work. Post construction maintenance. When it comes to post construction maintenance and interior works of office space, NSL is increasing its presence in pan-India. Even in Kidwai Nagar, Moti Bagh, NBCC exclusively handling the operation maintenance of over 30 years of O&M. And it also plays in case of ongoing GPRA construction, Sarojini Nagar, Netaji Nagar and WTC. Diversification. We are also taking some steps in -- to diversify NBCC in road, highways, overseas metro stations, solar, irrigation projects, water supply sector. Some good news in this regard is expected soon. At last, I shall greet you for happy and prosperous Deepawali to you and your loved ones. Thank you. Now forum is open for questions.

[Operator Instructions] So the first question comes from Dixit Doshi, Whitestone Financial Advisors Pvt Ltd.

Sir, my first question is, what is our current outstanding order book, including all the subsidiaries and Amrapali and all the redevelopment projects?

Around INR 55,000 crores, consolidated level.

Okay. And of this INR 55,000 crores, how many projects the work has already started?

Almost -- Amrapali, all the projects already awarded except one tech park. Out of 25 projects, 24 are already awarded. One project to be awarded, that is tech park. Whereas in 7 GPRA, almost 8 projects already awarded. Rest projects, we were awarding, it is in process.

So in terms of value of this...

In terms of value, already awarded around INR 20,520 crores.

INR 20,500 crores. Okay. Okay. Now my second question, you said about in the opening remark about how much order we have received this year in H1. If you can mention it again, and how much we are targeting?

We have received so far INR 7,094 cores, that is INR 7,100 crores we have received so far during this financial year.

Okay. And we are targeting another INR 10,000 crores.

Another INR 10,000 crores. Amrapali is still another INR 8,000 crores, INR 9,000 crores we have. That will come during this year. And we have lot many PSUs -- redevelopment of PSU land parcel -- [ grand railways ].

Okay. And this -- broadly, this INR 55,000 crore order book will be around 8%, 9% margin?

Approximately around 8% to 9%.

8% to 9%, okay. Now in terms of our real estate business, our own real estate, how much is the ready inventory we have and around whose that -- yes.

Around INR 800 crores is ready-to-move inventory we have. Some projects, 1 or 2 projects, will be completed in this quarter only. So INR 812 crores inventories are available.

Okay. And how much will be extra land bank post this?

Around INR 600 crores, INR 670 crores land bank parcel we have, that we'll...

[ INR 100 crore ] value. Okay. And typically, in our own real estate, what kind of margins we expect?

Around 20% to 25%.

The next question comes from Vasudev Ganatra from Nuvama.

Congratulations on a great quarter. And sir, it was very good to see the opening remarks so brief and detailed. So sir, my first question is that this INR 7,900 crores of order intake, which you said, that was on stand-alone or consolidated basis?

It is on consolidated basis. NBCC secured INR 4,600 crores, HSCL some INR 300 crores and HSCC INR 1,900 crores. So totaling of INR 7,094, it is consolidated basis.

Okay. And so then, sir, this INR 55,000 crores of order book which you said. So could it be possible to split between the PMC and the redevelopment?

Pardon me, PMC? We can say 58% in redevelopment, 42% in PMC.

Okay, sir. And sir, if you can give us that on the consolidated basis, how much of new projects we've awarded in Q2? And how much are we still planning in H2?

We have already awarded INR 4,333 crores work order and we are planning to another -- award INR 5,300 crores during this year. In total, it will be around INR 9,600 crores, something like that.

Okay. And now that our margins are back on track, so how much do we plan to do for the full year EBITDA and PAT margins?

EBITDA around 5% to 5.5%. But during this year, EBITDA will be around 5% to 5.5%. Next year, we are planning 5.5% to 6%. And next year, business development, we are targeting around INR 20,000 crores. And tenders will be around INR 12,000 crores.

Okay, sir. And what are the PAT margins that you're looking for, for FY '24?

Similar range. PAT margin, same. Almost [ 3 -- ] 5% to 5.5%.

And if you want to just repeat again that real estate inventory that we sold till date.

Till date? Around INR 54 crores of real estate we sold during this year. So expected another INR 100 crores, INR 150 crores will be sold during this quarter only. There are 2 prospective buyers are on the line. And by December, I think we will go to sell another INR 100 crores.

And in your opening remarks, you said, we are targeting in total Q3 and Q4, total INR 200 crores to INR 300 crores. Is that right?

Sale. yes, yes.

Okay. And sir, lastly, if you can give us a status update on the 7 GPRA colonies you worked.

Seven GPRA, already we are working in various packages. So this year, one is Nauroji Nagar. This value will be, almost 91% we have already completed and balance we'll be -- going to complete by -- before March. March, we will compete in all respect, Nauroji Nagar. And regarding sale also, we already sold around INR 8,750 crores. And during this year, INR 2,650 crores already sold out. And the balance will be another only INR 5,000 crores that I think we're going to sell before March. Regarding Netaji Nagar construction, the general GPOA and SARTAC, the work is in full swing. Almost 42% we've already completed. By July, we're going to complete this also. Regarding other projects, type 6, type 4 and other type 2 quarters, so the work is going on in full swing. Due to this GPRA, now work comes stand still. And after this, I think once the [ graft ] is removed, we'll then work in these -- all these packages.

Okay, sir. And Sarojini Nagar is fully completed, right?

Sarojini Nagar, around 3,600 crores work is in progress, that is type 2 quarters, INR 890 crores commercial almost completed -- 92% already completed in commercial near metro stations. Type 5 quarters, already we have started. And type 4 also we have started. Yesterday, we had a Bhoomi Poojan for Type 4 and Type 5, valuing of around INR 1,700 crores. On Type 6 quarters, we're going to award today or tomorrow. So that also we're going to start immediately. And one local shopping center, already in progress. Multi-level car parking also in progress.

Okay. Okay. What's the seed money in total and how much is the pending interest on that?

Madam, will touch. Please...

Good morning. The seed money outstanding as on date is INR 1,011 crores, which comprises of principal amount of INR 775 crores. We have received back the principal amount of approximately INR 200 crores from the ministry because we have enough money from the sale of the Nauroji Nagar project. And we have also received the interest during this quarter to the extent of INR 69 crores and the balance outstanding interest is now INR 235 crores. Am I clear or you want anything else?

No. And I'm clear on that. And just one question on this NBCC green project. So now we have to demolish the entire project. So like what are the steps we are taking to ensure that such kind of thing does not again repeat in future in any other projects?

The quality -- we have created in-house quality department and we are engaging third-party in all the projects. And personally, directors and including CMD, top officials are monitoring. So in future, that type of thing will never happen. So we have taken all precautions. And for quality control, we are sending the material directly by NBCC officers. Earlier, contractor used to send the samples. And all the sites -- we have installed the RO plants. The quality majorly problem in water or sand, these 2 materials. Other materials get tested by the laboratory and the manufacturers -- as well as manufacturers. But these 2, we have already taken care and we are addressing these 2 issues. And apart from that, we have issued so many technical circulars to our officers, and we are personally monitoring this quality. The quality division created at HO level, in RBG levels. And I think in future -- one more thing, we have changed the technology. So we are using now Mivan technology, our precast technology. So the quality part, I think, in future, zero tolerance on quality.

The next question comes from Rohit Natarajan, Antique Stockbroking.

Sir, now that the new CMD as a role that you have taken up, what exactly do you have in mind, a road map for the next 5 years? Where do you see NBCC's execution net profit going to? Would it be like INR 20,000 crore revenue, INR 2,000 crore -- INR 1,000 crore net profit, that kind of a vision? And if you could share, it would be really helpful. .

Definitely, definitely. In next 5 years, our target is around -- the top line is around INR 25,000 crores. And the bottom line that is PAT will be around INR 1,000 crores, INR 1,200 crores. This is our road map for which we are -- we still -- diversification also some area that is redevelopment of metro cities. Now presently, our existence is only Delhi. So in this field already in Kochi, we have secured INR 2,000 crores redevelopment work. Similarly, we are expecting some projects in Mumbai, Bangalore and other metros, Kolkata. And in Delhi also, we're going to get another 2 projects that is [indiscernible] redevelopment model. So -- but top line will be around INR 25,000 crores, bottom line INR 1,000, INR 1,200 crores. And we wish to start our real estate projects. There, we can get good margins, some 20%, 25% margin. We have a land parcel. So during this year, we're going to start Jaipur. We have 3 land parcels and this is the in-house land parcel and Coimbatore. And of course, Patna, we have also some land parcel. So that also we're going to start to ensure top line as well as bottom line.

Sir, I'm given to understand that you have an expertise in turning around stressed assets like Amrapali project, for instance. What is your road map to take this redevelopment portfolio that you have, almost like INR 22,500-odd crore? I understand that you have done multiple round of commercial monetization through e-auction route. And so far, you have got close to INR 8,700-odd crore. But what my point here is that this monetization pace is not really moving up. Look, for instance, our target in the last round of monetization was almost like INR 5,700 crores, but we could fetch only 25% of it. What seems to be the disconnect, sir?

Now, all the real estate properties, the rates also increasing. Just example, Amrapali, we started the selling of the rate in some x rupees. Now the rate is x plus 40%, around 40%. So 40% increase also we are increasing and we have sold -- already sold around 4,500 units, which was the largest in any private sector in Amrapali and we have secured around -- fetched around INR 2,500 crores value. So the inventory is very less now in Amrapali. So we wanted to do construction of the FAR also. Additional FAR, we are awaiting for the court direction. Once we receive the FAR decision, so we can construct the houses. So that each and -- all homebuyers should get their home. They have waited for long, 8 to 12 years. So the waiting period is over. Now by -- before 2025, we're going to complete all the projects in Amrapali that is varying in span of 3 to 5 years. We have completed INR 8,000 crores value and around 38,000 sets of homebuyers are going to get their home.

Sir, I appreciate your comments on Amrapali, but my question was more to do with the 1.47 million square feet, which we were planning to sell on 23rd October 2023 through e-auction. The site was at WTC Nauroji Nagar. Ideally speaking, this is a prime location and you are already selling at almost like INR 40,000 per square feet as such. But you could manage only 0.39 million square feet, that is almost like 26% of the target and could rake in only INR 1,500-odd crores kind of number. What seems to be the disconnect? Like here, the number -- the figure that initially you were looking...

Disconnect is nothing. Actually now earlier, we used to sell this property to government agencies, government. Now that is almost banned. So we are selling only private agency and PSUs only. The 7 GPRA and -- the Nauroji Nagar property has to be sold as per the recent directive, only private and PSU. The last action, we'll sell it to HDFC one full tower, so valuing of around INR 1,100 crores. Similarly, we have some other buyers in PSU. Petronet also, we sold around 3 floors. So similarly, before March, we're going to sell it. Earlier, it was only INR 200 crores, INR 300 crores sale. Now we had reached the last auction -- we reached -- before that last auction, INR 822 crores, out of which INR 550 crores, we have sold it to private agency. Similarly, last auction, we sold it at around INR 1,500 crores. Out of this, INR 1,200 crores, only private agency. Private agency, basically, they want to purchase the property. They can go for Noida or Gurgaon. So still, they are purchasing in World Trade Center. There is no miscommunication -- there is no gap rather. So another 1 or 2 auctions, we're going to sell it all the properties. Now they're inquiring and there -- they have to come through auction. I think next auction it will be -- I think we can sell around INR 2,000 crores, already they are in the pipeline.

Got it, sir. So just to harp on this particular topic that is Nauroji Nagar. Let's assume you are already selling it at INR 40,000 per square feet. Given that you want to do much bigger volume, is the price discretion, that is to reduce the price from INR 40,000 to say, reserve price of -- lower reserve price and then go -- call for e-auction. Is that an option or flexibility do you have with you?

Not necessary. We're going to sell all the properties in 1 or 2 auctions. Now the market -- real estate market is also increasing. Not necessarily. Reducing. Of course, it has been approved by the cabinet. It is not easy to reduce the reserve price.

The next question comes from Venkatesh Subramanian, LogicTree Consultants Private Limited.

You're, what do you call, bubbling with positivity and optimism, it is great to hear from NBCC after a very long time, sir. Congratulations. So that's one. So 2 questions, sir. A lot of my questions, Rohit and Dixit have asked. So one is you talked about the big plans that NBCC have and you're talking about using PSU land banks and then there are some other projects of -- in metros, et cetera. Can you give us some color on what kind of project because even the Prime Minister has been talking about urban development and making India housing for all, et cetera. Will we be participating in such projects?

Regarding metro, we have already discussed with our metro -- Delhi Metro. So they are going to participate in the construction of metros across the world. So there, we're going to sign an MoU with them. And regarding internal metro, that is Kochi Metro, we're already working with them. So they wanted to construct around 20 metro stations. So NBCC, they're having a vast experience in building metros whereas the metro ride will be done by Kochi Metro and metro station. We are in a mutual understanding with Kochi Metro. So -- and regarding PSUs, lot many PSUs, example, I don't want to quote their name presently because it will be confidential, but lot many PSUs having their vast land parcels in the city area. So -- and they are paying huge interest on their loan amount. Once we did the redevelopment model, so they can get their money more than what their land cost because the construction is done by us and we are going to charge the PMC fee. So the margin will be around 20%, 30%. So that -- by that, they can pay their loans and the company can get profit. This is our main idea.

Okay. So when you were talking about these projects, all this is part of your INR 20,000 crore top line that you're projecting for next year.

INR 25,000 crores -- rather INR 25,000 crores next year.

INR 25,000 crores. Okay. Sir, the next question is you are talking about various projects on one side, Amrapali PSU. Sir, NBCC as an organization and you also want to expand into a bit into Africa, Maldives, Arabia, do we, as an organization, have the manpower and the team to execute? Do we have the execution bandwidth to achieve such numbers?

Current manpower, I'm talking about NBCC current manpower, around 723 we have technical qualified engineers. And around 125 CA, ICW, 73 MBA and HR. So we have full strength so to take up any value of projects, whether it is in India or abroad. Since we already completed so many projects in abroad, Maldives, Mauritius and Dubai Expo also done by NBCC. So we have all expertise and I think there is no shortfall in manpower.

Just 2 last questions from my side. One is, do we -- you said there is something prospective that we could be looking forward to in terms of announcement. Would that be in the infrastructure side or on the housing particular? Because I'm trying to align with the government's objective for the sector, housing sector, sir.

No. Housing also there, housing and infrastructure and we wanted to do some diversification also. Irrigation projects, since NBCC has successfully completed the VIDC irrigation projects at Nagpur, so we are focusing on irrigation projects as well as railway redevelopments. All the railway stations in the metros, they have very good land parcel and they are unable to do their maintenance and all. So it is old structures in depleted conditions. We wanted to redevelop that also. So we are thinking to diversify also as well as -- and [indiscernible] recently, I don't want to disclose the name and all. So they have around 2,000 acre land parcel. We had an initial discussion with them. So at the earliest, we will go into give good news to you once it is true.

Right, sir. Last question, sir, which is we are under the Ministry of Urban Development. Is that right, sir?

Yes. Yes.

And the ministry also in terms of the -- we obviously need a lot of central government support and -- because like the defense ministry, defense stocks have done well, rail stocks have done well. Are we aligned with the ministry in terms of vision for achieving these things?

Definitely, definitely. We are in talks with the Ministry of Defense also. We wanted to do redevelopment of defense as well as -- so I don't want to disclose their names presently because our competitor reach there and we may face some problems. That's why I don't want to disclose their names.

I understand. I won't query you on that. So this year's top line, you're predicting approximately INR 11,500 crores, sir, broadly?

Yes, yes, yes. INR 11,000 -- around INR 11,000 crores, INR 11,500 crores.

[Operator Instructions] So the next question comes from [ Akshay Patil ], individual Investor.

Am I audible?

Yes, yes. You're audible.

First of all, congratulations to K.P. Swamy sir for being appointed as CMD. We, as shareholders, have great faith in his execution. So first question, provisioning of INR 65 crores has been done in this quarter. As of now, any further provisioning is required for NBCC Green View? Or is this the final one?

I think this is the final one. But what is happening, somebody wants refund, somebody wants reconstruction. So due to this, we are unable to finalize. Otherwise, we wanted to close this issue as early as possible. Because of 2, 3 groups, we are unable to settle their issues. And our main focus is we wanted to settle this issue during this financial year itself. So far -- we are creating provision, but so far, we have not disbursed because there is no unity between the groups, existing homebuyers. Because of that, we are unable to settle. Earlier, we offered for INR 5,000 buyback that only few people accepted. And the second half, we have thrown them is 6% interest, so for which we have created this provision. Anyhow, I think during this year, this issue also we're going to resolve because only 200 homebuyers are there. In Amrapali, we have solved around 38,000 homebuyer's issues. And this issue, I think, very small issue, but still it is a very concerned area. We are focusing on this and we're going to settle at the earliest. Don't worry.

Yes. And all the best for that. And next thing is the case has been filed against Ramacivil company for recovery of INR 750 crores, I guess. Sir, can you enlighten more on this one?

It is in -- still under subjudice. So once court decisions will come, then definitely we'll revert back to you.

Okay. And one more query. What will be the impact of ban on construction in Delhi on revenues and profitability in this quarter -- coming quarters?

No, there will not be -- I think for only a few days, the construction ban will be there. Of course, we already planned. Internal work, we can do. Only concreting and earthwork that cannot be done. I think today, with the grace of god, rain already came. I think it will be going to lift the ban. So there is -- there will be no impact on our quarter results. Only during this month for a few days, we have problems, but this will be very good season. I think we'll come out with this. We have already planned some activity in the ban area period.

Okay. And can you enlighten us on the impact of land monetization, national infrastructure pipeline on order book, revenues and profitability of NBCC?

That's what I'm saying. Actually, we are focusing 2, 3 PSUs. They are already discussing with us. So they are paying their interest. Every year, they are paying INR 200 crores, INR 300 crores interest. By this, they cannot turn the profit also. They are running in loss. So we had a discussion with some PSUs. So they are ready to -- willing to do the redevelopment model. So once it is through, our top line as rightly I already told you that during this year the turnover won't come. But of course, the tender and all, that part can be completed. From next year onwards, we can do construction in full swing and we can pay the interest as well as the principal amount also. They took loan from government banks. So that we have to refund. So by doing the redevelopment model, again, I think we can repay their payments.

Yes. Your words are giving me the faith that NBCC goes back to the golden days, which it was enjoying I think 3 years back. Congratulations to you, sir, once again.

The next question comes from Dhananjay Mishra.

Sir, regarding our provision, we have done in Gurgaon Sector 7. And till date, we have done about INR 224 crores provisions. And also, we are -- we have filed a claim of amounting INR 700 crores. So against whom we have filed this claim and what is the expectation of getting this claim? Sir, can you explain in detail.

The claim against the contractors that is Ramacivil Infrastructure, INR 750 crores. It is under subjudice. And this is only provision for making the payment and settle the homebuyers.

Okay. So till this settlement happens, we will be making quarterly provisions? Or is it the last we have done, sir?

I think this is the last one. This is the last one.

Okay. And also, sir, I had very recently visited NCR region. And we have seen prices shoot up close to 40% in Noida, Gurgaon. Are you also in your projects, you are seeing same kind of price...

Yes. Definitely, definitely. The market rate has increased in -- of course, Amrapali, we started to sell last February, we started to sell the inventory. Now we have increased -- in the same project, the rates have increased more than 40%, 45%. Similarly, Gurgaon increased more than 50%, 60%. So we are going to fetch in 37D once the issue is resolved. We're going to get huge profit in 37D. That I can assure you. Whatever provisions we're making, that we're going to recover in a year, a year or so.

Okay. Any specific region you see for such 40%, 45% movement in the last 1 year?

Because after COVID, once again, the business started gaining and everybody wants to buy their home. Some investors are also investing. So this is the reason investors as well as the homebuyers, they have confidence on NBCC. After waiting 8 years, they're getting their homes. All the homebuyers are sharing their views. They booked 10 years back. Now they are getting their homes. So that is one confidence in that, not only NBCC, in the whole Noida area redevelopment because all the privates, they're not giving their homes in time. Whereas NBCC is giving in time as well as quality products, that is the confidence on NBCC.

And you said that now you will make sure that our project quality will be at par with the other players because -- and that you -- because our project is still at discount. I checked the prices compared with the other projects and we are still at, I think, 10%, 15% discount when I'm comparing projects in surrounding areas.

Yes, definitely. That's why we are changing our technology also. So earlier we used to do brick-and-mortar and columns, so the quality could not be achieved. Now we are going monolithic constructions. And in one of the recent projects, [indiscernible] got the work in 7 GPRA, that is precast technology. So precast technology, the quality can ensure it does the slab, beams, stake, everything is captured at the yard and simply erected at site. So we can get good quality. So that is the reason we are focusing on quality. So we are introducing new technology. So with new technology only, have secured the work. And of course, in our real estate also, we wanted to do with the Mivan shuttering, that is aluminum shuttering. So that you can ensure the better quality and we wanted to put richer specification. Nowadays, the homebuyers want good quality and richer specification. So for same thing, we're incorporating in our tender conditions.

The next question comes from Vasudev Ganatra, Nuvama.

No, all my questions are answered.

So the next question comes from Dixit Doshi from Whitestone Financial Advisors Pvt Ltd.

Just one clarification. In Amrapali project, we'll be getting the PMC fee, right? Any price increase or the upside is not for us?

It won't come to us. We are getting fixed PMC 8% and 1% on marketing. Apart from channel partners that they are selling, that PMC -- that marketing fees also we are getting. So 9% we are getting overall on Amrapali project. Whatever increase, that will be going to Supreme Court that is court receiver.

Thank you, sir. There are no further questions. Now I hand over the floor to the management team for closing comments.

Once again, thank you, all the investors and shareholders, and wish you happy Deepawali in advance. And I think in next year, we can come with good results and good news. Thank you.

Thank you, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Door Sabha's conference call service. You may disconnect your lines now. Thank you, and have a pleasant day.