NCC Limited Corporate Presentation - November 2021
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NCC Limited
Corporate Presentation
November 2021DISCLAIMER No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of NCC, which are expressed in good faith and in their opinion reasonable, including those relating to NCC’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of NCC or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in NCC’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. NCC disclaims any obligation to update these forward-looking statements to reflect future events or developments. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities of NCC by any person in any jurisdiction, including India and the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. NCC may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. This presentation shall not be copied or disseminated in any manner. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of its should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States without registration under the U.S. Securities Act of 1933, as amended, except pursuant to an exemption from registration there from. This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner Copyright © 2017 NCC Limited 2
Table of Contents
Page No.
1 Company Overview 4
2 Business Verticals 10
3 Key Investment Highlights 17
4 Company Strategy 29
Copyright © 2017 NCC Limited 3COMPANY OVERVIEW
Company Snapshot (1/5)
Overview
• One of the largest Listed construction companies in terms of revenue in Shareholding – As on September 30, 2021
India
• Well diversified order book with presence across buildings & housing,
roads, water & environment, irrigation, electrical, metals, mining and
railways
• Pan India presence with offices across 13 cities in key states such as Promoters
Maharashtra, Andhra Pradesh, Telangana, Karnataka, Gujarat, Uttar
Pradesh, West Bengal, Tamil Nadu, etc.
• Experienced Management and skilled workforce which includes 5092 Promoters
employees (including 3352 Technical), currently executing around 120 19.68%
FIIs, NRIs and OCBs
active sites at various locations (As on September, 30, 2021)
• Order Book of INR 39,112 Cr as on September 30, 2021. New orders of
INR 5,611 Cr received during H1 FY 22
FIIs, NRIs and
• Market capitalization: INR 4,817.79Cr as on November 11, 2021 OCBs
14.66% MFs/DIIs
• Key projects executed: Indian Public
o Agra Lucknow Expressways – Uttar Pradesh 44.70%
o ESI Hospital and Medical College, Gulbarga, Karnataka MFs/DIIs
11.59%
o Outer ring Road, Hyderabad Growth Corridor – Telangana
Bodies Corp
o Infrastructure development, Ministry of Defence - Arunachal Pradesh
o Water Supply Project, Rajkot - Gujarat
• Major investors having stake in the Company: Bodies Corp
9.36%
o Rekha and Rakesh Jhunjhunwala Indian Public
o Nippon Life India Trustee Ltd
o Aditya Birla Sun life
o IDFC Sterling Value Fund
Copyright © 2017 NCC Limited 5Company Snapshot (2/5)
Key Milestones Group Business Structure
NCCL Group Revenue
Turnover Crosses INR 12,000 Cr.
2019 of H1 FY 21-22
Order Book Crosses INR 41,000 Cr
2017 Secured 1st MDO Order
NCC Ltd (Standalone) Subsidiary Companies
2012 Order Book crosses INR 20195 Cr Revenue Contribution – 88% Revenue Contribution – 12%
2005 Turnover crosses INR 1000 Cr • Revenue contribution • NCC International LLC,
from Construction Oman – Construction
2002 ISO 9001:2000 certified business of NCC (on • NCC Urban -Real Estate,
standalone basis) Mining, BOT & Others
1995 Turnover crosses INR 100 Cr
1992 Initial Public Offering
1990 Converted into Public Limited Company
1978 NCC set up as partnership firm
Copyright © 2017 NCC Limited 6Company Snapshot (3/5)
Pan India Presence
Delhi
Lucknow
Ranchi
Bhopal
Ahmadabad Kolkata
Bhubaneswar
Mumbai
Vijayawada
Bangalore
Hyderabad
Kochi
Chennai
Regional offices controlled by Directors and / or senior management facilitate efficient and timely decision making
Copyright © 2017 NCC Limited 7Company Snapshot (4/5)
Diversified Order Book - (Consolidated)
Total Order Book: Rs. 39,112 Cr Total Turnover: Rs. 4,428 Cr
(as on September 30, 2021) (as on September 30, 2021)
Mining, 6%
Others, 1% Buildings
Other, 1%
Buildings
Mining, 12%
Irrigation, 6% Roads
Roads
Irrigation, 3%
Electrical, 5%
Water &
Environment and Water &
Railways Environment+Railwa
Buildings, 36%
Electrical Electrical, 12%
Electrical
Water &
Environment Buildings, 57%
and Railways, Irrigation
22% Water &
Irrigation
Environment+Rail
ways, 20%
Others
Roads, 16% Mining
Roads, 3%
Mining
Other
Copyright © 2017 NCC Limited 8Company Snapshot (5/5)
Segment- wise Order Book as on 30.09.2021
W&E Internation
Particulars Buildings Roads Electrical Irrigation Mining Others TOTAL
& Railways al
Orders on 21157 1954 7078 2438 2442 2592 17 251 37928
Hand as on
01.04.2021
56% 5% 19% 6% 6% 7% 0% 1% 100%
Add: New 2823 95 2272 194 0 194 0 33 5611
Orders
Received
50% 2% 40% 3% 0% 3% 0% 1% 100%
Less: Value of 1597 712 881 510 128 542 3 55 4428
Works
Executed
36% 16% 20% 12% 3% 12% 0% 1% 100%
22383 1337 8469 2122 2314 2244 14 229 39112
Net Balance as
on 30.09.2021
57% 3% 22% 5% 6% 6% 0% 1% 100%
Copyright © 2017 NCC Limited 9BUSINESS VERTICALS
Operating Divisions
Building & Water &
Roads Electrical Irrigation International
Housing Environment
• Industrial buildings • Highways • Water supply • Transmission and • Dams & Reservoirs • Roads
• Commercial • Highway projects distribution lines • Canals • Buildings
buildings realignment and • Water treatment and sub-stations • Tunnels • Water pipelines
• Housing projects Bypass plants • Project • Barrages, Spillways
• IT Parks • Carriageway • Distribution electrification and Aqueducts
• Shopping malls widening and networks • System
• Sports complexes strengthening • Underground Improvement
• Hospitals drainages Projects
&Medical colleges • Lift irrigation
• Bridges, flyovers schemes
and elevated
corridors
• Metros
Mining Railways Others
• Overburden • Track Laying • Power
removal • Signaling and • Oil & Gas
• Coal excavation Communication • Metals
• MDO • Railway Siding • Others
Diversified operations across various divisions help mitigate business risks
Copyright © 2017 NCC Limited 11Building & Housing
Order Book (As on September 30, 2021) Details of Major Projects Completed
Project Value
Project Name Location
(INR Cr)
APTIDCO 2 Locations 1789
INR 22,383 Cr
Building & NBCC KIDWAI NAGAR New Delhi 698
Housing
57.00%
NAGPUR METRO Nagpur 562
SAMAJWADI AWAS YOJANA Lucknow 377
Key Clientele Details of Major Projects Under Execution
Project Value
Project Name Location
Client Name (INR Cr)
AIIMS
4 Locations 3717
Uttar Pradesh Housing & Development Board
The Project Seabird, New Delhi
Airport Authority of India (SEABIRD PHASE IIA ,KARWAR) (2 Karnataka 2442
All India Institute of Medical Sciences (AIIMS) Projects)
NBCC Limited Airport Authority of India 3 Locations 1693
Director General Project Seabird (AOD)
MMRDA Mumbai Metro Mumbai 857
Lucknow Development Authority
Mumbai Metropolitan Region Development Authority
(MMRDA)
Copyright © 2017 NCC Limited 12Water & Environment
Order Book (As on September 30, 2021) Details of Major Projects Completed
Project Value
Water & Project Name Location
(INR Cr)
Environment
22.00% INR 8,469 Cr SAUNIYOJANA L-3 P-1 & P-2 2 Locations 1247
TDWSP-RR Ranga Reddy
1517
District
Water Supply Projects - BILWARA – 1 Rajasthan 535
&2
Key Clientele Details of Major Projects Under Execution
Project Value
Client Name Project Name Location
(INR Cr)
Gujarat Water Supply and Sewerage Board State water & Sanitation Mission, Govt 10 Disctrict of UP 8255
Government of UP of UP
Namami Gange & Rural Water Supply Mirzapur & Jhansi 1084
Government of Jharkhand
TDWSP-WARANGAL Warangal 721
Govt of Telangana
SAUNI PKG-6 PH-II L-4 Amreli 681
Public Health Engineering Department, Rajasthan
Public Works Departments, Government of West Bengal
Copyright © 2017 NCC Limited 13Roads
Order Book (As on September 30, 2021) Details of Major Projects Completed
INR 1,337 Cr Roads Project Value
3.00% Project Name Location
(INR Cr)
Agra Lucknow Expressways Uttar Pradesh 1560
Hyderabad Growth Corridor Limited Hyderabad 761
Key Clientele Details of Major Projects Under Execution
Project Value
Client Name Project Name Location
(INR Cr)
National Highways Authority of India Nagpur Mumbai express way Maharashtra 2850
UP Expressways Industrial Development Authority
Jabalpur Flyover Jabalpur City 686
Capital City Development and Management Corporation,
Vijayawada Madurai Ring Road Tamilnadu 440
MSRDC Limited Double Deck Flyover – Chandni Maharashtra 331
Chowk - Chhapra Town
White topping of Roads -
Karnataka 267
Bengaluru
Copyright © 2017 NCC Limited 14Irrigation
Order Book (As on September 30, 2021) Details of Major Projects Completed
Irrigation
6.00%
Project Value
INR 2,314 Cr Project Name Location
(INR Cr)
Gandak Canal Project Bihar 543
Sardar Sarovar Narmada Nigam Ltd. Gujarat 454
Water Resources Dept. Birpur Bihar 153
Details of Major Projects Under Execution
Key Clientele
Project
Project Name Location Value
Client Name (INR Cr)
Sardar Sarovar Narmada Nigam Limited Lift Irrigation Project (PRLIS) Telangana 1008
Water Resources Department, Govt. of Bihar Formation of Reservoir project –
Telangana 592
Water Resources Department, Govt. of Chattisgarh Baswapur
Govt. of Andhra Pradesh, Water resources department Moderanisation of Midpennar South Canal Andhra
441
_ Pakage 43 & Pakage 44 Pradesh
Copyright © 2017 NCC Limited 15Electrical
Details of Major Projects Completed
Order Book (As on September 30, 2021)
Electrical6 Project Value
Project Name Location
5.00% (INR Cr)
INR 2,122 Cr
TG&D Corpn Ltd, Chennai-Erode Tamilnadu 254
PVNL- RGGY - Phase II Allahabad Uttar Pradesh 165
Power Grid Corpn.of India Ltd.
Andhra Pradesh 131
TW- 01 & TW-02
MSEDCL – Nashik Maharashtra 74
Key Clientele Details of Major Projects Under Execution
Client Name Project Value
Project Name Location
(INR Cr)
Purvanchal vidyut Vitran Nigam Limited PVVNL- Saubhagya- Meerut Uttar Pradesh 475
Dakshinanchal Vidyut Vitran Nigam Limited Jharkhand Bijili Vitran Nigam
Jharkhand 538
Madhyanchal Vidyut Vitran Nigam Limited Limited, Ranchi
West Bengal State Electricity Distribution Co Ltd BESCOM, KENGERI,Indiranagar,
Bangalore 610
Jayanagar
Jharkhand Bijili Vitran Nigam Limited
Power Grid Corpn.of India Ltd
Copyright © 2017 NCC Limited 16KEY INVESTMENT HIGHLIGHTS
Key Investment Highlights
1
• More than Four decades of experience in completing numerous construction projects across
Strong Execution Track Record roads, buildings, bridges, irrigation & mining etc. with timely execution
2
• Robust and regionally diversified order book diversified across 27 states in India with strong
Diversified Order Book across counterparties
Industry Segments and Geography • Order book of INR 39,112 Cr (as on September 30, 2021) and order book to sales ratio of 5x
provides strong cash flow visibility for next 5 years
3
Robust Financials with Strong • Company has stable financial performance in terms of margins and return metrics along with low
leverage
Credit Rating • India Ratings - “A” with positive outlook
4
• Board comprising of 5 Executive, 1 Non-executive non-independent and 4 Independent directors
Professional Board with Strong
• Strong Corporate Governance due to institutional ownership and presence of independent
Corporate Governance directors in board & various committees
5
• Various initiatives such as Bharat Mala, Sagar Mala, Pradhan Mantri Awas Yojna, Namami Gange
Favorable Industry Dynamics Programme, Freight Corridors, Industrial Corridors, Smart Cities, etc. to provide additional
impetus to Construction industry
Copyright © 2017 NCC Limited 18Strong Track Record
Details of Major Projects Completed Ability to Win Large Projects
Project Cost Year of
Project Name Location Demonstrated ability to bid for and win large projects
(INR Cr) completion
• State water & Sanitation Mission, Govt of UP, Lucknow (2 Projects) :
TDWSP – Ranga Reddy Telangana 1516 2019-20 INR 5854 Cr
Agra Lucknow Expressways Uttar Pradesh 1560 2017-18 • Nagpur Mumbai express way, Maharashtra : INR 2850 Cr
ESIC Hospital & Medical • The Project Seabird, New Delhi (SEABIRD PHASE IIA ,KARWAR) (2
Karnataka 1073 2014-15
College Projects ) : INR 2442 Cr
IISCO Steel plant Blast • Building Project by NBCC, Nauroji Nagar, New Delhi: INR 1652 Cr
West Bengal 784 2014-15
furnace
Details of Major Projects Under Execution
Key Clientele
Project
Client Name
Project Name Location Cost
(INR Cr)
Indian Railway Power Grid Indian Oil
Nagpur Mumbai express way Maharashtra 2850
Coal India CIDCO Airport Authority of India
The Project Seabird, New Delhi (SEABIRD
Karnataka 1127 National Aluminum Steel Authority Hyderabad Growth
PHASE IIA ,KARWAR)
NBCC India Limited, New Delhi ( ITC – Company of India Corridor
New Delhi 1560
NAUROJI NAGAR) National Highways Bharat Heavy Maharashtra Airport
Pune Metro Package-1 & 2 Maharashtra 1096 Authority of India Electricals Development
NBCC India Limited, New Delhi ( AIIMS NTPC NBCC Indian Army
Chhattisgarh 1063
BILASPUR)
Copyright © 2017 NCC Limited 19Divisional Performance as on September 30, 2021
Buildings & Housing (Rs. Cr) Water & Environment + Railways (Rs. Cr)
Revenues
Revenues
8469
22,383
2,289 2,691 1,866 1,681
3,522 5,419 3,543 2,776
881
1,597
FY 18 FY 19 FY 20 FY 21 H1 FY 22 Order FY 18 FY 19 FY 20 FY 21 H1 FY 22 Order book
book
Electrical (Rs. Cr) Irrigation (Rs. Cr)
Revenues Revenues
2,314
2,367
2,122
963 992 431 387
751 263 298
510 128
FY 18 FY 19 FY 20 FY 21 H1 FY 22 Order FY 18 FY 19 FY 20 FY 21 H1 FY 22 Order
book book
(1) Order book as on September 30, 2021
Copyright © 2017 NCC Limited 20Divisional Performance as on September 30, 2021
Mining (Rs. Cr) Others (Rs. Cr)
Revenues Revenues
2,244 266 229
654 65 49
351 11
34 67
542
55
FY 18 FY 19 FY 20 FY 21 H1 FY 22Order book
FY 18 FY 19 FY 20 FY 21 H1 FY 22 Order book
International (Rs. Cr) Roads (Rs. Cr)
Revenues Revenues
629 1,337
1,185 1,213
412
301 672
132 386
14 712
3
FY 18 FY 19 FY 20 FY 21 H1 FY 22 Order book FY 18 FY 19 FY 20 FY 21 H1 FY 22 Order
book
(1) Order book as on September 30, 2021
Copyright © 2017 NCC Limited 21Robust Financials with Strong Credit Rating (1/3)-
1
Standalone Financials
Revenue (INR Cr)
Margins
12,198 11.8% 12.5% 11.8%
8,370 10.7%
7,371
4,135
4.6% 4.6%
3.5% 3.8%
FY 19 FY 20 FY 21 H1 FY 22 FY 19 FY 20 FY 21 H1 FY 22
EBITDA Margin PAT Margin
Return on Equity Leverage
Networth (INR crs)
5600 14.0%
RoE (%)
2.9%
7.5% 5%
5400 12.0%
11.9% Total Debt (INR crs) D/E (x)
2150 0.4500
5469 2,102
5200 10.0% 2100
1993 0.4000
2050
1,910 0.3500
5000 8.0% 2000
5369 0.3000
5106 1950 1,789 0.4x
4800 6.0% 1900 0.2500
0.4x
1850 0.4x 0.2000
4600 4756 4.0% 1800
0.1500
1750 0.3x
0.1000
4400 2.0% 1700
1650 0.0500
4200 0.0% 1600 0.0000
FY19 FY20 FY21 H1FY22 Note:
FY19 FY20 FY21 H1 FY22
1. All figures are derived from standalone financials
Copyright © 2017 NCC Limited 2.
3.
EBITDA Margin: EBITDA / Operating Revenue; PAT Margin = PAT / Total Revenue;
RoE = PAT / Net Worth 22Robust Financials with Strong Credit Rating (2/3)-
2
Consolidated Financials
Consolidated Revenues (Rs. Cr) Margins
12.4% 12.2%
11.6%
13,020
10.3%
9,014 8,065
4,646
4.4%
3.5% 3.5% 3.5%
FY 19 FY 20 FY 21 H1 FY 22
FY 19 FY 20 FY 21 H1 FY 22
EBITDA Margin PAT Margin
Leverage Position
3000.0 0.6x 0.600x
0.4x 0.4x 0.4x
2500.0 0.500x
2000.0 0.400x
1500.0 2,181 0.300x
2,691
1000.0 2,062 2,316 0.200x
500.0 0.100x
0.0 0.000x
FY19 FY 20 FY 21 H1 FY 22 Note:
1. All figures are derived from consolidated financials
Total Debt (Rs.Mn) D/E (x) 2. EBITDA Margin: EBITDA / Operating Revenue;
3. PAT Margin = PAT / Total Revenue;
Copyright © 2017 NCC Limited 233 Robust Financials with Strong Credit Rating (3/3)
Finance Cost (INR Cr) (Actual / % of Turnover)
Finance Cost Comprises of:
451 517 458
• Interest on Working Capital Loans & Cash Credit 220
• Interest on Term Loans
• Interest on Mobilization Advances
• Commission on Bank Guarantees and Letter of Credits 6.2 6.21 5.3
3.7
• Other Financial Charges
FY 19 FY 20 FY 21 H1 FY 22
Working Capital Assistance from Banks Finance cost % Turnover
(As on September 30, 2021)
Sl. No. Particulars Limit (INR Cr)
Rating of the Company:
1. Cash Credit & WCDL 2188
2. Bank Guarantees 9499 • External rating of the company is “A“ with positive outlook
3. Letter of Credit 1000 by India Ratings
TOTAL 12687
Copyright © 2017 NCC Limited 24Favorable Industry Dynamics (1/3) (Rs. Cr)
Investment Planned Under NIP
Roads
3,83,283 3,56,966
3,32,559 3,32,659
2,52,780
2,40,761
FY20 FY 21 FY 22 FY 23 FY 24 FY 25
Urban Infrastructure
4,62,208
4,04,134
2,98,174
2,34,858 2,17,164
1,59,872
FY20 FY 21 FY 22 FY 23 FY 24 FY 25
Copyright © 2017 NCC Limited 25
Source: CrisilFavorable Industry Dynamics (2/3) (Rs. Cr)
Investment Planned Under NIP
Railways Airports
3,08,800 2,73,831
2,62,465 24,820 25,386
18,667 21,655 21,334
1,33,387 2,21,209 3,32,659
5,141
FY20 FY 21 FY 22 FY 23 FY 24 FY 25
FY20 FY 21 FY 22 FY 23 FY 24 FY 25
Irrigation
2,00,615 1,75,669
1,14,463 1,37,358
1,15,281 70,474
Copyright © 2017 NCC Limited FY20 FY 21 FY 22 FY 23 FY 24 FY 25 26
Source: CrisilFavorable Industry Dynamics (3/3) (Rs. Cr)
Sector-Wise Capital Expenditure in Infrastructure
Energy
Social Infrastructure, 1,68,727 Industrial Infrastructure,
3,93,386
Agri & Food Processsing Roads
Energy, 26,90,003
Infrastructure, 7,73,915
Railways
Rural Infrastructure, 8,94,473
Ports
Airports
Irrigation, 3,09,672
Urban Infratructure
Irrigation
Urban Infratructure, 19,19,267
Rural Infrastructure
Agri & Food Processsing Infrastructure
Airports, 1,43,448 Roads, 20,33,823
Social Infrastructure
Ports, 1,21,194
Railways, 13,67,563 Industrial Infrastructure
Copyright © 2017 NCC Limited 27COMPANY STRATEGY
Company Strategy
• Focus on core competency of the Company i.e. Construction Business (EPC and Item rate contracts) with
Asset Light Business asset light strategy
Model • Monetize BOT and Real Estate Assets exposure on a case to case basis
• Limited exposure to selective HAM projects in Roads
• With impetus of Government on development of Infrastructure and housing for all in India, focus on
Focus on India bidding for construction projects in India
• Exit from middle east construction business
• Continuing efforts in improving operational efficiency and reduction of costs
Improving Operational • Focus on superior management and better control of projects by strengthening MIS and Review System
Efficiency and Return
Metrics • Sustained efforts on improving EBITDA and Net Profit Margins
• Reduction of Debt and Interest Costs
Copyright © 2017 NCC Limited 29Thank you
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