Eyeing Rs 25000 cr worth orders in FY18: NBCC

In an interview to CNBC-TV18, Anoop Kumar Mittal, Chairman of NBCC spoke about the results and business outlook going forward.

Below is the verbatim transcript of the interview.

Ekta: We understand that you have secured a total business of around Rs 1,877 crore in the month of March. Can you tell us what exactly the sector breakup has been and what FY18 is looking like?

A: Out of the work which we have secured in the month of March, approximately Rs 500 crore of work has been secured from the Mauritius government where we will be building their Supreme Court building and a housing complex in Mauritius itself. The second project is an irrigation project with Maharashtra government in Nagpur region, the value of which is around Rs 1,100 crore and third project is housing complex for CBI officers in Delhi. Its value is around Rs 250 crore. So these are three-four major projects of approximately Rs 2,000 crore that we secured in the month of March.

However, for next year FY18, we have target of Rs 25,000 crore of work whether from redevelopment segment or Project Management and Consultancy (PMC) segment, so this is our target.

One more thing I would like to tell you that we have started one subsidiary company NBCC Overseas which will take care of our overseas business. However, we will be aggressive henceforth in overseas market also.

Ekta: You have signed memorandum for business exploration with a company in Poland. Can you explain to us what that means in terms of business for you?

A: A company called BOLIX in Poland is a subsidiary company of Berger Paints. They manufacture material for thermal insulation in the buildings. However, by providing this material the inside temperature of the building reduces by 7-8 degrees and energy consumption also reduces by 30-35 percent. So we have signed an agreement with the company and we will use this material in India through our vendors and we will also market their product in other government departments. We will also use this material outside India wherever NBCC is working. So this is the MoU signed with BOLIX and other financial terms that we will decide on project to project basis.

Prashant: On Rs 1,900 crore odd order that you received in the month of March. The gross margin that you will make is 5 percent, right?

A: The gross margin we will make around 6.5 percent on these orders.

Prashant: Net margins?

A: At net level, we will be around same - 6.5 percent.

Prashant: You said that you are looking at Rs 25,000 crore worth of orders in the year we are in right now, April to March '18?

A: Yes, Rs 25,000 crore.

Prashant: The margin should be around 6 percent odd level, both gross and net?

A: Definitely.