NBCC (India) Limited ($534309)

Well, good evening, everyone. I'm your host, Ms. Fehmina. It give me immense pleasure to welcome to all our SME guests, dignitaries and participants and members present here today for the special events organized by NBCC. And on behalf of the entire team, I extend a warm welcome to each one of you. And thank you for joining us today. But today's gathering is an important occasion that brings together distinguished leaders and professionals, and we look forward to engage our insightful session ahead. May I request our esteemed dignitaries to kindly come on stage Dr. K. P. Mahadevaswamy, Chairman and Managing Director, NBCC India Limited. Huge round of applause, ladies and gentlemen. Next, I would request Mr. Shri Anjeev Kumar Jain, Director Finance, NBCC India Limited. We also have with us Mr. Pravin Tukaram Doiphode, Executive Director, Engineer, NBCC India Limited. Mr. M. B. Singhal, Executive Director, Finance, NBCC India Limited. Mr. Balkishan Singla, Investor Relation, NBCC India Limited. Well, a little bit about our company, NBCC India Limited is a Navratra Central public sector enterprise under the Minister of Housing and Urban Affairs and one of the India's leading infrastructure and project management companies. Established in 1960, the company operates across project management, consultancy, engineering, procedures and construction and the real estate development with the robust order book exceeding with INR 1.27 lakh crores and their pre-balance sheet with NBCC has played a pivotal role in delivering landmark projects such as Bharat Mandapam, major government redevelopment initiatives. Institutional buildings, hospitals, housing projects and strategic infrastructure across the country, recognizing with an excellent rate by the department of public enterprise and ranks among the top performing SCSE in the country, NBCC continues to be a key partner in India's infrastructure and urban development journey. Leading today's discussion are members of NBCC's senior management team whose experience and leadership continue to drive the company's success. If you will allow me to reframe the introduction. It's my privilege to introduce Dr. K. P. Mahadevaswamy, Chairman and Managing Director of NBCC India Limited, and Chairman of the Standing Conference of Public Enterprise Group. With over 32 years of rich experience in construction and infrastructure sector, Shri Mahadevaswamy has demonstrated exceptional leadership, technical expertise and strategy vision throughout his extinguished carriers. Having raised through the ranks within NBCC, he has played a pivotal role in strengthening the organization, growth and leadership position in industry. He is widely recognized for successfully transforming SSCL into a profitable, Miniratna PSU and for spearheading landmark initiatives, including the successful excursion of the Amrapali toll real estate project. His contribution to the sector have owned him several prestigious recognition, including the Nav Bharat Navratna award real estate leadership, iconic award and CEO of the Year Award. Ladies and gentlemen, please join me in the welcoming of K. P. Mahadevaswamy with a huge round of applause. We are pleased to welcome to Shri Anjeev Kumar Jain, Director of Finance at NBCC India Limited, a fellow member of institute of cost accounting of India with nearly 3 decades of experience across the finance proceedment and contract management and project oversight. He has held key leadership role at NHPC, DFCCIL, and REMC. Well, he has played an instrument role driving financial excellence, organizational growth and value creation across the public sector ecosystem. Well, thank you so much for joining us today. I now hand the session to see Shri Anjeev Kumar Jain, Director of Finance, NBCC India Limited.

Good afternoon, everybody. It's an honor to be among the shareholders and investors of NBCC. And before I start, I just -- because I have been working for the last 3 decades in public sector. I started with NHBC then DFCC then rights. And now I am Director Finance of NBCC Limited. I have seen the working of with all regard to corporate, private corporate, but CPAC is a different ballgame, especially from the governance point of view. And I'm saying this with a connection because when you compare CPFC with a private corporate, CPFC has a very different mechanism for corporate governance. CPFC, when balance sheet accounts are prepared, private sector secured by the Board of Directors and CPFC sector is appointed by the comparator auditor of journals. So complete independence. Beyond that, when the accounts are audited by Secure auditor, a supplementary audit under companies that is also done by CA of India on the reports of statutory auditor. So there are well audited. CAG is looking after though it is a listed company with only 61.75% of government holding, 38% public float is, still because it is a government company being more than 51% of share of the government of India, that's why CAG come into picture. Apart from them, monitoring by DIPAM because DIPAM is there to take care of the minority shareholder. DIPAM guidelines. I don't know how many of you are aware of the DIPAM guidelines. DIPAM guidelines provides how to -- detailed guidance on capital restructuring. They provide -- can I speak in Hindi also no issue, [Foreign Language] 30% of the PAT, 4% of the network, but that is a minimum. But if you don't have any CapEx plan, then please don't keep that paisa with you. It is the money of the investor [Foreign Language] Second, buyback [Foreign Language]. Apart from that, all the board members or senior management are appointed by highest body of India that is appointing committee of the cabinet. City is there to monitor certain parameters, there is a mechanism called memorandum of understanding. Every year, every CPSC, profit-making CPSC has to sign a memorandum of understanding, which enlists the targets to be achieved in the coming year. [Foreign Language] That is the total return to the shareholders. [Foreign Language] That is important for what, for providing variable pay to the management as well as the executive company. [Foreign Language] So I have been here for 30 years, [Foreign Language] So transparency is there, all tendering, all contract management is done through a transparent mechanism following the government financial rules. [Foreign Language] So with this, let's move to NBCC. I am Anjeev Kumar Jain, Director of Finance, NBCC, I joined this company on 1st November 2024. And for the last 3 years, sales Dr. K. P. Mahadevaswamy this as a leader of this company, I think last 3-year [Foreign Language] We started our journey in 1960. In 1960, we [Foreign Language] Then we'll go on listed in 2012. [Foreign Language] There is a sector called Maharatna, Navratna and Miniratna, Group A, Group B [Foreign Language] So we become Navratna in 2014. And under the leadership of Dr. Swamy, we are looking and we are taking -- we are establishing a reason to become Maharatna [Foreign Language] That company was working under Ministry of Steel, but we took 51% share under SSCL. At that time, it was a loss-making entity. And again, under the leader of Dr. Swamy because he was stand there as a CEO of that company. And from a loss-making company, we do a turnaround at a company, now it is a profit-making company. We acquired the company from the Ministry of Steel, now 49% stake is in the Ministry of Urban and Housing and 51% is with us. And the discussion is going on, why don't we take 49% of that company because of late that company is also doing business in the industrial area in which NBCC is working. So I think to get more synergy and all this, [Foreign Language] We acquired that company from the Ministry of Health. [Foreign Language] as well as the old facility, [Foreign Language] and we NBCC is also has carried out a lot of work in hospital arena in Devgar, in Bilaspur. So we are also looking to establish a synergy why don't we have a vertical within our NBCC. And that proposal has since been principally approved by department of investment or public asset management. That is DIPAM [Foreign Language] Again NBCC is the only CPSC who has rescued and provide resolution to the stress asset Amrapali under the supreme court. [Foreign Language] So we are the only CPSC [Foreign Language] As of now, I think they have not provided any solution. But we have provided a solution, and we are happy to share [Foreign Language] number of person because approximately 4 lakh units are under stress as of now. Out of 50 -- that 60% or maybe 60% to 65% is in Noida, Greater Noida, rest is in Mumbai, from Bangalore or elsewhere. So a lot of person are approaching us. Recently, 15 days back a private society in Gurgawa. They approach us, phone came from me from America [Foreign Language] 13 or 14 month, Supreme Court is of the view NBCC [Foreign Language] let that result be with NBCC [Foreign Language]. They are approaching us that we want that type of Mandapam in our state. And we already award in our city from the government of Rajasthan to construction Rajasthan Mandapam based on that. And some more states are approaching us. So that is iconic building we created. Then that WHO building, [Foreign Language] we achieved all time number 826. We surpassed 10,000 total income on a stand-alone basis all time high. So this is the brief of the journey. Then a second slide I already covered. Now I talk about the model. Let me talk about other subsidiaries also. I have spoken about NBCC, HFCL. Subsidiary we created in 2014. The purpose of creating that subsidiary is because we are in construction. And after construction, if building are not maintained properly, so definitely [Foreign Language] So we thought the maintenance is an important thing. That's why we created NSL, NSLs, NBCC Services Limited. And role is to provide maintenance facility to those buildings, which has been constructed by NBCC. So that company is doing well. Though turnover-wise, this time result is flat, but it is doing well. And in maintenance, margin is in the vicinity of -- EBITDA is in the vicinity of 10%, 11%, 12%. So that company is doing well. Then before I talk of DP, department of public parameters. One of the parameters is export target and export target is very relevant for our India economy also. So because of that target is being circulated to the PSU also. So one of the target of MOU is export. And because of this target we venture out in Dubai. We have been in Dubai since 2018 because we constructed an iconic building for Ministry of Farmers there that Dubai Expo Pavilion, we have been there and we thought why don't we venture out in a -- as a developer in real estate. So for getting a developer license in Dubai, we bought a land parcel though very small one, very small ticket size, 15,000 square feet ticket size. So we formed the subsidiary in '25, '26 itself, and we acquired a land parcel for [Foreign Language] NBCC was under 3 models. [Foreign Language] TMC is nothing but the project management consultancy. Suppose a client ministry of power [Foreign Language] Ministry of Health [Foreign Language] you created AIIMS for us. Then Ministry of Health come to NBCC or rather NBCC go to Ministry. Then we have signed an MOU with Ministry of Health, we prepare a detailed project report onward, we come up with a number. Then number is given to the ministry, ministry take the sanction internally because that money has to be spent by the budget of Government of India, Ministry of Health. Then they provide sanction. Once the sanction is received, we award the contract to the contractor, we start constructing right from the design, construction and after taking the occupational certificate, everything, fire certificate, environment [Foreign Language] we hand over that AIIMS to a ministry. In this, whatever construction cost is there, [Foreign Language] So this model, we know we call it PMC. We are project management consultant to the Minister of Health. [Foreign Language] So PMC is nothing but project management consultant. I act as a consultant to take clients for whom I am creating an asset. And that client is paying me the entire money out of his money that is [Foreign Language] along my PMC.So that is purely PMC model. Off late, I think 14 years back, I think [Foreign Language] So PMC, second is EPC. EPC works just like a contractor. So contractor [Foreign Language] I think previously, [Foreign Language] Third segment is the real estate segment. Third segment is real estate. Real estate means, we are working as a developer as such. We have land parcel on our books of account. We are developing those land parcel. We are working as a developer. We are constructing and we are filling the buildup area. And we are earning. We are putting our money in that business and whatever earnings we are getting, and it's purely real estate. [Foreign Language]. Next. So as far as a glimpse FY '25 [Foreign Language], that 8% though revenue growth is 12%, profit is definitely 48%. It includes other income. Order book is used stand-alone 1,13,004 and consol 1,27,000. Out of that order book, approximately, 28,000-plus order is on surface. This year work is going on. And balance is either in the stage of avoiding, either we are going to award shortly or on which sanction of the client has not come. [Foreign Language] Our organization is quite young. Average we have 1,144 employees, but average age of our employees is 38. That is very good. And out of 1,144, 150 odd of employees are those which are nonexecutive category, [Foreign Language]. We are engineering organization. Out of these 750 or 760 employees are engineers, civil engineer, electrical engineer, mostly civil engineer, 120 plus are finance staff and HR stuff. So all are professional. We are a professional organization average age is 38 years. And I think this, I have told you strategic client. One of the important aspects of our business is, which we'll start later on. We are the go-to consultant or go-to company for government of India and the state government for monetization. You must have heard about the national monetization plan of government of India because government want to monetize either their land parcels or those buildings which are not being used or old building. So government want to monetize it or want redevelopment of those building without incurring money from the base. So we are the go-to consultant, go to company. Every redevelopment we are carrying out on the basis of the MOU. So this is the area I am talking about, we have been here for the last 14 years. And now it is going on towards maturing, it is maturing because more and more state governments are also forints. They also want because it is a winning position for those, further neutral position, monetization. And this is required for the -- Prime Minister always talking about monetization [Foreign Language] monetization can be through our PPV model, VVV model, you must have known. [Foreign Language]. This is a round up, I have told 10,000 cross [Foreign Language] be able to achieve highest ever order. [Foreign Language] And we are able to award, award means we are getting the work from the client, firm work and we are awarding to the contractor. So during this year, we are able to award INR 10,000 crores of work. [Foreign Language] So they decided to whatever dividend you have paid last, you paid that dividend. Last year, we have paid 38% of the profit. So 38% of the profit again was INR 189 crores, something like that. So they say [Foreign Language] we declare approximately 54 paisa. Consol is same. Revenue from operation, if you see revenue [Foreign Language] consol basis where you can see lower growth as compared to the stand-alone growth. The stand alone growth 11%, consol level 7%. It is before one of our subsidiary is not doing well as a top line or in EBITDA field also, they are not doing well. So we are faced with the issue, and we are thinking something has to be done so as to maximize the wealth of these stakeholders. So EBITDA also, you can see if the stand-alone EBITDA is there, there is absolute terms, there is an increase of 4.98%. But when consol, it is going down because of subsidiary. So talk about the last 5 years, then you can see there is a 15% growth in revenue, 5 years. [Foreign Language] we are thinking how to improve it. So there is an increase of 36% CAGR in absolute terms, but in percentage terms, more or less, it has been static in the vicinity of 5 to 6 months. Consol business [Foreign Language] Value creation, you can see. This is the important thing. Because we are having a very -- our equity is just INR 2,700 crores [Foreign Language]. At the same time, whatever money I am adding surplus in my KT, that is being used efficiently. Ultimately, [Foreign Language] This is setup of the order book. This order book and the [Foreign Language] We'll talk about 3 segments, that is PMC, EPC and real estate. I think last 14-year [Foreign Language] Client has to put the CapEx on cost, I will charge 8%, 7%, that is my PMC. But new variant has come up, that is redevelopment. Redevelopment business model [Foreign Language] Government of India is having old government colonies. These government colonies are 50-year-old, 60-year-old, 70-year-old. These government colonies are being maintained by CPWD, and government is incurring a huge money on maintenance of that. Moreover, as the time goes, the available space is not sufficient to address the demand of increasing government employee. So government thought why don't we redevelop these assets, these government flats, [Foreign Language] so as to save the money being incurred on maintenance as well as to provide more space to our employees and to go vertical because [Foreign Language] you must have seen 4 story, 2 story. Then by going vertical in the same area, we can be able -- we can provide more government staff to accommodate. So [Foreign Language] but from where money will come, then government decide we provide solution, NBCC, there are 5 colonies [Foreign Language]. So why don't you do one thing, [Foreign Language] demolishing that colony, you construct some buildup area and you sell that built up area to the private person to generate money. And whenever that money is generated, by using that money, you created government flat. [Foreign Language] whatever land is there you commercially exploit that land, you construct something, you sell that to the private party. You generate money. And by generating the money you construct these 3 colony and these colonies to be handed over to the Bharat sarkar for their employees. So [Foreign Language] It is a buzzard neutral position for Bharat sarkar. So this is a redevelopment. Redevelopment means identified some land parcel, which can be commercially exploited. And using that money, you can construct the asset of the bharat sarkar. So we started in 2012, there were 3 models which we invested at that time. Model 1 was [Foreign Language] whatever money generated from that land that will be used to construct the space for employees. [Foreign Language]. Out of this complete thing, INR 328 crore plus [Foreign Language] PMC did 2 things, on one hand, they involved in the construction of that asset, that new Moti Bagh, [Foreign Language]. On that construction envisaged the word PMC. So PMC [Foreign Language] it become my top line for construction. [Foreign Language] so PMC, I told you, PMC having only one limb that is the margin on the construction cost. But in this variant redevelopment, there are 2 variants, 2 stream of revenues coming to my KT, one is that construction cost, say PMC margin. Second is for [Foreign Language] I am getting 1% marketing fee. [Foreign Language] So this development model will started in 2012. That is in outright sale of land [Foreign Language], we lease out that built up area to offices and whatever money will be generated from leasing for 30 years, that money will be used for construction of the government quarters. If you have seen [Foreign Language] before demolition, there were, I think, 2,500 units. But after construction [Foreign Language], we were able to give them 4,600 units to government. [Foreign Language] long-term lease 30 years ago upfront INR 5,200 crores. [Foreign Language] whatever construction we did, we got our PMC, sale value, lease marketing. Then comes the third model. Third model is -- [Foreign Language] why don't you sell out the entire built up area on 3 old basis if you have seen WTC, World Trade Center, World Trade Center is constructed on the FY Morrison government colony, 25-acre. [Foreign Language] and that will be used for construction of 7 GPRA [Foreign Language] I told you about ETN, that was lease model. I told you about the 3-odd land sale that was too -- that was first model. Now government sanctioned this construction of 7 GPRA project, GPRA means General Pool Residential Accommodation. Cabinet [Foreign Language] cost was INR 28,172 crores, then maintain are 30-year -- of INR 4,300 crores total cost requirement of fund was INR 32,475 crores. And how to generate that money, that money is to be generated again by putting the commercial space. [Foreign Language] You can see Nauroji Nagar. Nauroji Nagar is the place where colony was there. [Foreign Language]. Then there is a Vinayak Mandir Marg, again, [Foreign Language] 5,500. Then Cyndia Mark, 99 big [Foreign Language], I think, that is that will be, I think, used for state government and all this. So [Foreign Language], then residential apartment along Africa avenue, [Foreign Language]. We required money INR 32,745 crore, but we have generated so far INR 36,905 crores. [Foreign Language], they are first completely sold off. [Foreign Language] whatever rate has been taken, market [Foreign Language] because whatever sale we are launching is through e-auction. [Foreign Language] We are able to create the assets. That's why I'm saying we are the natural partner of the government of India in monetization and redevelopment. So [Foreign Language] 167 and 170 colony in Delhi [Foreign Language] So you can imagine the huge market waiting for us. And from this diagram, I'm saying with conviction in this development area. NBCC is the only CPSC who is in this area, private I don't think we'll enter this area because this redevelopment involves the selling and monetization of the e-mobile of the bharat sarkar. [Foreign Language]. Apart from that, if you look at the CPSC [Foreign Language] They are constructing the building. But no CPSC is involved in the real estate area. Because I am having the exposure to the real estate arena, that's why this work is coming to me. So this is the new variant of PMC redevelopment. And our total order book if we divide 50% or more than 50% is in redevelopment, rest is in PMC, more and more state government, even CPSC, they may come through this route because this is a win-win position for them, getting money generated through commercial harnessing a particular land parcel and using that money from the built up area, they want for their utility. . Next. These are there some I think pictures, our Honorable Prime Minister are inaugurating GPRA. This is GPRA I'm talking about. This is again that GPRA. Next. This is a quarter I talk about this upcoming projects, Indian. Next. This is Africa when our 262 units will be there. They will also be launched soon. I think this -- This is the Bharat Business Park just opposite to the WTC and 5 Tower has already been sold out. For 2, I think, we have already initiated a sale and 1 tower will be -- I think in June itself, they will be on sale. Next. Now this is Amrapali. I think Amrapali, I have touched about -- I think the portion is there, that will be taken care in the question and answer session. We can skip it. This is a photo of Dream Valley after construction. [Foreign Language] Amrapali, 45,000 units there. We -- In our scope, it was 36,000 something. That is one. Phase one. Based on our success, Phase 2 also been awarded to NBCC. That is all greenfield list [Foreign Language] already awarded, construction is going on in full swing. So we'll be able to generate INR 9,000-odd crores. Next. Overseas on I think we -- these are some overseas projects we did -- I talk about Dubai and all this. This is a social housing which we did as an EPC contractor. This, I think our employee project this year has increased. This is our Board of records, 2 are from the government. Shri Sandeep, he is the Indian Railway Accounts Officer, he is from the Ministry of Housing Affairs and Shri Ravi kumar arora is 2004 batch. There is more than one independent here. Next. Supertech, already covered. Ghitorni. Now I touched upon the real estate 2 important projects. One is Ghitorni. Ghitorni is a place on -- there was a dispute, long-standing dispute there with the government of Delhi that we're able to resolve. In fact, I will touch upon one thing after joining of CMD, sir. current management. Our thought or our direction is to a resolution because time value of money is very important. [Foreign Language] we are expecting FY '29, '30, it will add approximately INR 8,500 crores in our top line and INR 5,000-plus crores in our operating margin. . So this is a big achievement. We were able to achieve in this financial year. We were able to close this issue only some leasing -- some lease agreement is to be signed between NBCC and the government of Delhi that will be -- I'm sure that we'll be able to carry out in this month itself. So this is a major achievement of this year. Next. In Dubai, I think I already touched. In view, [Foreign Language] Now that contractor for, again, constructing that land has been awarded, INR 800 crores or INR 850 crores of contract. We are looking at a top line of INR 2,300-odd crores and operating margin will be around INR 1,200 crores, INR 1,300 crores [Foreign Language] So this is also one of the major achievements of this year. And because apart from Dubai, where we purchased land and all this, we are able to carry out some MOU because through this MOU, we think we will be able to get some PMC or EPC project abroad. [Foreign Language] This, I think, CPSC land monetization. This is important because DIPAM is always after all CPSC, [Foreign Language] area which is without being used, you just give us the information because in the position, Finance Minister announced key [Foreign Language]. And we consider ourselves again as a natural partner of the DIPAM to involve in this area also, CPSC land monetization. Border fencing is a big area, recently when the government change [Foreign Language] and we are doing a very good work in the state of Mizoram, Indore Manmade border [Foreign Language] we were able to perform very well. And based on our performance, we are looking for a good order number on this aspect because -- and this may come soon maybe in this financial year itself. Sal real, I have talked about, health infrastructure, I have talked about. Next. Thank you. Thank you very much.

Thank you very much, sir. We truly appreciate the valuable perspective shared. That was indeed informative and thought provoking. Ladies and gentlemen, we will now open the floor for questions. Before opening the floor for questions, I would like to highlight that our Chairman and Managing Director, Dr. K.P. Mahadevaswamy, will conclude today's session by sharing his views on NBCC's future growth trajectory, key strategic initiatives and the opportunities he sees ahead for the company. We encourage all the participants to remain connected until the end of the session to benefit from these insights. Sir, please take the seat. We will now open the floor for question and answers. [Operator Instructions]

I'm [indiscernible] from Emkay Global. My question is pertaining to that real estate thing you mentioned. Sir, are you venturing into real estate as a developer or your role should be limited to, say, a consultant, PMC or as an EPC contractor, or you will become a pure play real estate developer? Like in RERA, your name would be there as a promoter, co-promoter, that legal liability of a developer, you will have a specific brand, that kind of thing. So just wondering what would be your role?

In real estate, we are doing as a developer only, not PMC. For others, we are doing as a PMC. In our real estate, we will be developer, we will take RERA registration and we will sale, we'll get the profit, everything by us only.

And this land that sir has mentioned earlier that you have land in Delhi as well as in other cities. You have bought land in Dubai. But besides that, you have land parcels in other cities. Those lands are owned by NBCC or these are owned by other CPSC and...

Our land, our land. We are talking about some -- we have around INR 900 crores land parcel, 3 in Jaipur. We have a land in Delhi 2 land parcels. And Delhi, Ghaziabad, we have our land parcels. Regarding PSU telling, so we may take up the work as a PMC. So that is PSU. Few PSUs have huge land parcel, and they have huge residential quarters, horizontal quarters, they don't underutilized, rather they are underutilized or they are in deteriorated conditions. That we wanted to redevelop as a PMC there.

So there, there won't be some JDA structures like other real estate developers do. Typically, all the developers nowadays doing JDA structure.

Maybe we may think for a joint developer also. Otherwise, presently, we are doing as a PMC and we are hiring the contractor and we are selling. Selling, we are getting marketing fee. So construction done by some contractors. Amrapali, we are doing same model. It is, of course, a private project monitored by Supreme Court. There, we are selling the units after constructions.

One final question. What would be the total revenue potentials of this land parcels that you own.

Our?

Yes, your land parcels.

Our land parcel. Our land parcel in Ghitorni, we may get INR 8,500 crores revenue top and bottom line, around INR 5,000 crores to INR 6,000 crores profit because the land is ours. So land cost is only with INR 200 crores we have invested, it is 50 years old land. So currently, we -- in our books, only INR 1 crore, the land was long disputed land. So that's why we may get good revenue and as well as profit, higher profit.

Dixit Doshi here from White Stone PML. Sir, 2, 3 questions which are related to each other. So firstly, if you can update about some of our major projects like MAHAPREIT, J&K, in Nagpur and [Mumbai Air Port Trust ]. I think MAHAPREIT and J&K itself is around INR 40,000 crores. So what is the status? Last time you have mentioned that we still need some state government approvals and financial closures. The question is also -- this also relates to our execution. So obviously, we have INR 120,000 crore order book, but if we see consol revenue, we are growing at 10%, 11% only. So unless we don't award these big orders, how the execution will shape up next 2 years?

Regarding J&K, J&K order got last to last year only. Because of change in government, this could not be materialized for execution, but we're going to upload the tender, one small tender, we're going to approach during this month only. Now the execution part is taking care of in J&K. Similarly, MAHAPREIT, these are all projects are self-sustainable project. And it is a government not spending any money. So getting loan or getting approvals got delayed. But MAHAPREIT also, I think by this month end or next quarter, it is going to start. Already, HUDCO has sanctioned the loan, only disbursement is the issue. So you have to get registered through RERA. As soon as RERA registration is over, the money will be distributed and MAHAPREIT also will going to take care. Regarding Naveen Nagpur, already HUDCO has sanctioned the loan and land acquisition in full swing. Hopefully, I think third quarter, we may going to start the work in Naveen Nagpur. These are all the 3 projects includes INR 40,000 crores, INR 43,000 crores. And one more project that is Suppertech, that was due to Supreme Court, it has got us stuck up. Now Supreme Court only told us to not us or even homebuyers, this project will be done by NBCC. There also, we need RERA exemptions. So once we get the RERA exemption already consulted and appointed by us, so we're going to take this -- during this year, I think all the 3, 4 projects we are going to start.

So considering this -- so last year, we have awarded around INR 11,000 crores worth of order to subcontractor. So considering all these large orders, what kind of numbers we are looking for this year?

Award.

Award.

Minimum INR 30,000 crores, I think.

INR 30,000 crores.

Minimum.

Okay. So that shows...

MAHAPREIT, we are trying to do in phased manner, but J&T also in phased manner. Supertech will do, I think, INR 10,000 crores. Rajasthan Mandapam RIICO, we already floated a tender. So around INR 2,700 crores that will be going to finalize in June itself. Two more projects will come in GCC and township. So that also will go into first next quarter. So around INR 30,000 crores will go into award during this year.

Okay. So our ongoing execution is around INR 33,000 crores, and this will actually double this year.

Yes, yes, yes. Definitely, definitely.

Okay. Now regarding the redevelopment model, so I think in next couple of years, we'll execute the earlier 7G GPR colony. So -- and you did mention about in last con call. So what is the status of new colony?

All the 7 GPRA colony we have awarded. So tender part is over. Execution also started around INR 9,000 crores to INR 10,000 crores will go to -- we have already awarded. So it will go to complete in 2 years. So [Foreign Language] daily itself, apart from Bangalore, Kolkata [Foreign Language] for other purpose. [Foreign Language] So it will come in a phased manner. Immediately, I don't want to tell you [Foreign Language]. Hopefully, next quarter, we're going to get good business on this development. I don't want to talk numbers and all. It is in the approval of the cabinet. Once it comes, we'll disclose to you.

Okay. And one last question. So you did touch upon the Ghitorni land, but there was no mention about the Gurgaon 37D project.

[indiscernible] Now we're going to get INR 1,200 crores profit after adjusting construction cost and that loss, INR 1,200 crores profit will come to our KT after 2 years because in real estate, the money cash flow will come immediately. Hopefully, next quarter, the cash inflow comes, but the profit or the turnover will come at the time of ending over [Foreign Language].

So 37D can come in FY '29?

'28, '29.

And Ghitorni will be '29 or '30?

[Foreign Language] we are thinking some portions [Foreign Language] revenue as well as profit.

Sir, you said about Mizoram. Congratulations, something which others couldn't do, you did well. Congratulations for the same. Regarding Bangal, do we have any like vision? I mean, how much can be the size? Or it is too early to say anything?

It is too early to say, but size will be a good number of size. Definitely, I can say this. It will be good figures.

I just had 2 clarifications, sir. The first one being, sir, on your cash balance that you talked about, the INR 6,500 crore cash that you have in your balance sheet right now, you use that as like to finance and take a certain that's what it's used for. And that's what it will be used for going forward as well.

As on 31st 2026, we are having INR 424 crores of cash on our balance sheet. The rest belong to this client. In fact, our cash flow consists of 2 things, our own cash and client cash, we keep as a separate dedicated account because clients give us some money from CapEx projects. So that cash is being used for 3 things. Pending its utilization in the business, we are keeping it as an FD or in mutual fund as per the Department of Public Enterprise guidelines because there's a guidelines which provide how to use the surplus cash. Second is the seed money, where in redevelopment project, cash outflow and cash inflow are mismatching. Bridge financing for bridge financing, we use that cash. We provide seed money. On seed money, we charge 9% approximately interest. And third thing is whenever client is not giving money, but construction is going on, sometimes contractor may ask for financial assistance. We have such provision in our GCC, general conditional contract. We provide SA also to the contractor. On that also, we charge certain percentage, maybe 10%, I think, for interest. So whatever is coming in other income, that is from the utilization of that cash in these 3 forms.

Added to this, one more thing. Recently, we purchased one tower in Bharat Business Park. So we have purchased tower. So there also, we need some cash we have to infuse. So that model means after completion, 2 years, we are going to get a lease of around INR 130 crores in a year minimum. So that strategy also we have changed. So for that purpose, if required, we have to infuse our cash.

And sir, secondly, the commercial exploitation that you referred to, where part of the land is built. So that -- the building or the construction of office spaces or whatever, that also we do or that is, again, a PMC model.

We do. We construct the asset, which has to be handed over to the [indiscernible]. We also construct the asset, which has to be sold commercially. So both the assets are being considered by us. And on both the construction costs, which are 8% PMC.

Thank you so much for coming and meeting us in person. It's very highly sweet of the management to come to Bombay all the way. So thank you very much. Very good presentation by you, sir. Sir, I have just one of a few questions. So today, your order book is about INR 135,000 crores broadly. And I'm sure that the execution would be about 4, 5 years. So sir, can you just help understand that how do you see revenue growth over the next couple of years shaping up because this order book also has to be executed. And if I just see the record over the last few years, you've got an order of INR 3,000, INR 40 crores broadly. If I take it to your average INR 18,000, INR 50,000, so you're getting; about INR 40,000 crores broadly in new business every year. Now you just highlighted that the current order awarding is about INR 30,000 crores for this year and INR 30,000 crores ongoing. So effectively, INR 60,000 crores will basically start converting into revenue, right? Plus you'll have the Ghitorni project, plus you'll have Sector 37D. So the way I'm looking at it and sir, correct me if I'm wrong, I think that you're going to enter an explosive phase of growth. So if you can help understand on that because I'm sure that you'll have to convert at some point of time, this revenue will have to go to INR 30,000 crores because if you have to execute INR 130 crores of the existing, plus what you're bagging from new orders, as sir highlighted that the opportunities in redevelopment are very high, plus you spoke about a few other things. So I'm sure you will get new business as time goes. So can you just elaborate a bit on execution of revenue growth as well as bottom line. And you made a very interesting point by saying that you're looking at getting Maharatna status. Now if I track CPICs very closely, so I understand that, that profit figure to INR 500 crores, INR 6,000 crores. You've reported INR 750 crore profit in the last year, I mean, in the reported year. So is your vision that your profit potential at some point of time to get to Maharatna has to be INR 6,000 crores. So are we looking at that kind of visibility? So it will be nice if you just talk about that, sir.

Sumeetji, thank you. First of all, during this year, I think end of this year, our order book will be around INR 2 lakh crores, around -- we are expecting major work orders. So I don't want to disclose the names. So that 60,000 lakh, 67,000 lakh, [Foreign Language]. So this year, I'm talking about only stand-alone because subsidiary [Foreign Language] I don't want to touch up on subsidiary. I wanted to focus on stand-alone. Stand-alone, our profit also margin also very high, and we have good order book also in stand-alone. So only stand-alone, we are thinking in this year, INR 14,000 crores to INR 15,000 crores, we are going to achieve during this year, which will be around 40% to 50% increase. Next year, INR 21,000 crores to INR 20,000 crores -- INR 22,000 crores and another [indiscernible] next year. So INR 25,000 crores to INR 28,000 crores top line and almost 10% INR 2,500 crores PAT without a small quantity of profit I'm adding from Ghitorni and 37D. [Foreign Language] We'll go into Navratna status.

Sir, recently, you had announced the MOU with [indiscernible]. So can you explain what that MOU is? Also, the Augustranti Bhawan also redevelopment, but not too many details were mentioned. So if those could be and then I'll take the next.

Definitely. What happened, actually, MAHAPREIT and J&K, we have a setback. In fact, why we have set back even Naveen Nagpur. So redevelopment a lot of opportunity. We have a lot of opportunity. Land monetization [Foreign Language], but they don't have cash and NBCC [Foreign Language] so we had MOU after delaying MAHAPREIT. [Foreign Language] HUDCO will be funding rather sponsoring for initial construction [Foreign Language] and we will do redevelopment. State Government [Foreign Language]. Some money will come will get [Foreign Language] NBCC will get construction cost by PMC at 1% marketing.

Sir, there are a couple of PSUs which have land. Some of them are within Ma, say, Hemisphere, shipping corporation land. They are not being able to sell for the last 4, 5 years since when they have been listed. Could you use the opportunity to help them?

Yes, definitely. Both our PSUs actually [Foreign Language] They are in use class and they are paying interest. Every month, they are paying interest, even do construct going to take -- my second question, sir, last year, maybe last 2, 3 years, [Foreign Language] since we have expertise, [Foreign Language] but we could not take in the financials. [Foreign Language] Now, we are going to do commercial. [Foreign Language] We are going to give 33% revenue to [indiscernible], 63% [Foreign Language] during this all process, we are getting our PMC, 68%, whereas [indiscernible] [Foreign Language]

[Foreign Language]

[Foreign Language] So next week, I'm going -- planning to go there. So we make it border finishing. Not only border finishing, we may get [Foreign Language] Everyday, we are engaging during those sections. [Foreign Language] So one is employment, better monetization and latest norms, [Foreign Language] So almost 35% of the water, we are reducing. [Foreign Language]

Sir, my second question, sir, till last year, last 2-3 years, NBCC was mostly Delhi, but it looks like now you're saying MP, Bihar, West Bengal. So in 3, 4 years, can we say that you...

Definitely, we will cover all India. [Foreign Language] They need initial money. [Foreign Language] So win-win situation for all of us. [Foreign Language] we can go for equity model also, instead of PMC [Foreign Language].

Sir, this is Raj Shah from [indiscernible] Asset Management. My first question was, sir, on the Mumbai ports Trust opportunity that you have been about. Can you please share some thoughts what is the opportunity size over there and when it will fructify?

[Foreign Language] So we can make it very big order in Mumbai.

Okay. Sir, second question was largely from the industry perspective. You have to deal with many contractors in the business. What we have been listening, the main concern has always been about the availability and reliability of the skilled labor. So my question was, sir, how do you tackle that kind of issue? And secondly, do you see the future of pre-engineered structures, prefabricated structures? What we are hearing that even in high rises now that is being penetrated. So please share your thoughts.

Yes, of course, both valid [Foreign Language] So we are planning to do trainings. [Foreign Language] Construction costs are around INR 1,500 crores. [Foreign Language]

Sir, contractually, in case there are project delays or cost overruns or rising inflationary environment, what is the implication on our profitability? And the related question is, what are the levers that you're looking at to improve our EBITDA margins?

[Foreign Language] Whatever things we are doing. Suppose, [Foreign Language] which may go up to 10%. [Foreign Language]

And on the margin improvement from here on?

Pardon me?

Margin improvement, any levers that you see?

Margin. [Foreign Language]

My name is Komal and I'm from Kolkata. Sir, I just had a follow-on question about what you rightly mentioned that NBCC has bought its own Bharat Business Park via e-auction at INR 3,700 crores. So what is the rationale behind this purchase?

[Foreign Language] They don't want to buy the property. At the same time, they wanted unrented business. [Foreign Language] So let us invest on the property, so that we can get lease rent every year and at the end of 10 year, maybe 8 years, [Foreign Language]. That is the reason we purchased this.

So when do we expect the lease intrust to flow in? And what amount could it be?

[Foreign Language] And almost INR 130 crore, INR 140 crore [Foreign Language] every year, we're going to get the lease.

This is Pankaj from Kotak Securities. The question is on this INR 30,000 crores of new work that you are targeting to award. So which all projects are going to contribute in that? And second thing on this Suraksha Group, who is not able to execute the project. Do you see any chance of rebidding?

I don't want to disclose your first question answer. I can disclose once I get the word order. [Foreign Language] So there's not much reason behind this. [Foreign Language] Because of that, they could not achieve. [Foreign Language] That is the reason we got Supertech. [Foreign Language] And across India, almost 4 lakh home buyers [Foreign Language] And they do know, they have paid 100% payments and [Foreign Language].

Sir, the last question is on the execution side. Of course, we have INR 130,000 crores of order book, and we will have a INR 60,000 crores of work that will be in execution phase. What are the key challenges that you believe will impact the targets that you have -- growth targets that you have for next 4, 5 years? Because we have seen in the past also, we had a very good order book, but on the execution side, we face challenges.

[Foreign Language] I think there's no much challenges, except those skilled labor [Foreign Language].

Sir, so many tailwinds in your favor, can you give some sense how will we be closing this year as top line and bottom line? And how will the trajectory be coming?

[Foreign Language]

INR 5,000 crores will be in next four years.

Once again, thank you for coming. [Foreign Language] Due to unavoidable circumstances, [Foreign Language] Once again, thank you, everyone. Just take your video.

Thank you very much, sir. And thank you, everyone, for your active participation and engaging questions. Let's watch the video now. [Presentation]

Thank you very much. Ladies and gentlemen, with this, we come to the end of today's event. Thank you all, our distinguished guests, speakers and attendees for being a part of this wonderful gathering. We now invite everyone to join us for high tea and networking. Have a wonderful day ahead, and thank you.