NCC Limited Corporate Presentation - May 2019
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NCC Limited
Corporate Presentation
May 2019DISCLAIMER 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
• Second largest Listed construction company in terms of revenues in India Shareholding – As on March 31, 2019
• 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
Maharashtra, Andhra Pradesh, Telangana, Karnataka, Gujarat, Uttar Promoters
Pradesh, West Bengal, Tamil Nadu, etc.
• Experienced Management and skilled workforce which includes 6,250 Promoters
employees (including 4,212 Technical), currently executing around 120 18.11%
active sites at various locations (As on March, 31, 2019) Indian Public FIIs, NRIs and OCBs
• Order Book of INR 412 bn as on March 31, 2019. New orders of INR 256 bn 25.91%
received up to March 31, 2019.
• Market capitalization: INR 68.44 bn as on May 25 , 2019
FIIs, NRIs and
• Key projects executed: OCBs MFs/DIIs
Bodies Corp
o Agra Lucknow Expressways – Uttar Pradesh 6.53% 21.17%
o ESI Hospital and Medical College, Gulbarga, Karnataka MFs/DIIs
o Outer ring Road, Hyderabad Growth Corridor – Telangana 28.28%
o Infrastructure development, Ministry of Defence ‐ Arunachal Pradesh Bodies Corp
o Water Supply Project, Rajkot ‐ Gujarat
• Major investors having stake in the Company:
o Rekha and Rakesh Jhunjhunwala
Indian Public
o Reliance Capital Trustee
o Aditya Birla Sun life
o Sundaram Mutual Fund
o UTI
Copyright © 2017 NCC Limited 5Company Snapshot (2/5)
Key Milestones Group Business Structure
NCCL Group Revenue
Turnover Crosses INR 12 bn.
2019 As on 31.03.2019
Order Book Crosses INR 411 bn
2017 Secured 1st MDO Order
NCC Ltd (Standalone) Subsidiary Companies
2012 Order Book crosses INR 201.95 bn Revenue Contribution – 94% Revenue Contribution – 6%
2005 Turnover crosses INR 10 bn • Revenue contribution • NCC International LLC,
from Construction Oman & Nagarjuna
business of NCC (on Construction Co LLC,
2002 ISO 9001:2000 certified
standalone basis): 94% Dubai – Construction ‐3%
• NCC Urban ‐Real Estate &
1995 Turnover crosses INR 1 bn Others‐ 3%
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)
2 Diversified Order Book
Total Order Book: Rs. 411.97 Bn Total Turnover: Rs. 123.25 Bn
(as on March 31, 2019) (as on March 31, 2019)
Buildings Others, 1% Buildings
International, International,
Others, 1% 1% Mining, 2% 3%
Irrigation, 6%
Roads Irrigation, 3% Roads
Mining,
5%
Water & Water &
Electrical, 4% Environment+Rail
Environment
and Railways ways
Electrical Electrical
Buildings, 39% Electrical, 19%
Buildings, 44%
Water & Irrigation Irrigation
Environment
and Railways,
23% Mining
Others Water &
Environment+R
ailways, 22%
Mining Others
Roads,
Roads, 21% 5%
International International
Copyright © 2017 NCC Limited 8Company Snapshot (5/5)
Division Wise Execution & Order book As on 31.03.2019
(Rs in Billion)
W&E &
Particulars Buildings Roads Electrical Irrigation Others Mining International TOTAL
Railways
145.80 42.47 62.77 19.26 25.21 4.34 16.06 9.41 325.32
Orders on Hand as
on 01.04.2018
45% 13% 19% 6% 8% 1% 5% 3% 100%
74.46 52.82 61.88 21.98 3.57 1.59 7.49 0.00 223.79
Add: New Orders
Received
33% 24% 28% 10% 2% 1% 3% 0% 100%
54.19 6.72 26.91 23.67 4.31 2.66 0.67 4.12 123.25
Less: Value of
Works Executed
44% 5% 22% 19% 3% 2% 1% 3% 100%
166.07 88.57 97.74 17.57 24.47 3.27 22.88 5.29 425.86
Balance as on
31.03.2019
39% 21% 23% 4% 6% 1% 5% 1% 100%
5.25 2.19 4.57 0.00 0.35 0.27 0.23 1.02 13.88
Less: Contract
Asset(WIP) adj.
160.82 86.38 93.17 17.57 24.12 3.00 22.65 4.27 411.98
Net Balance as on
31.03.2019
39% 21% 23% 4% 6% 1% 5% 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
• Bridges, flyovers • Lift irrigation
and elevated schemes
corridors
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 March 31, 2019) Details of Major Projects Completed
Project Cost
Project Name Location
(INR bn)
Building &
Housing APTIDCO 2 Locations 17.89
39.00% INR 160.82 bn
NBCC KIDWAI NAGAR New Delhi 6.98
NAGPUR METRO Nagpur 5.62
SAMAJWADI AWAS YOJANA 3.77
Key Clientele Details of Major Projects Under Execution
Project Cost
Client Name Project Name Location
(INR bn)
Uttar Pradesh Housing & Development Board Housing Projects (7) ‐ APTIDCO, 7 Locations in AP 60.57
Airport Authority of India Airport Authority of India 3 Locations 16.50
Nagpur Metro Rail Corporation Ltd. Pune Metro Package‐1 & 2 Maharashtra 8.47
NBCC Limited MMRDA MUMBAI METRO Karnataka 6.87
Bangalore Metro Rail Corporation, HLL Infratech Services, Noida( AIIMS
Punjab 5.65
Bathinda)
Lucknow Development Authority
Indian Institute of Management
Copyright © 2017 NCC Limited 12Water & Environment
Order Book (As on March 31, 2019) Details of Major Projects Completed
Project Cost
Water & Project Name Location
(INR bn)
Environment
23.00% INR 93.17 bn
2 Locations 12.47
SAUNIYOJANA L‐3 P‐1 & P‐2
Water Supply Projects ‐ BILWARA – 1 Rajasthan 5.35
&2
Water Supply Projects ‐BUNGHI‐ Rajasthan 1.40
RAJGARH
Key Clientele Details of Major Projects Under Execution
Project Cost
Client Name Project Name Location
(INR bn)
Gujarat Water Supply and Sewerage Board
14.45
Hyderabad Metropolitan Water Supply and Sewerage Board TDWSP‐RR TELANGANA
TDWSP‐WARANGAL TELANGANA 7.21
Govt of Telangana
SAUNI PKG‐6 PH‐II L‐4 AMRELI,GUJARATH 6.81
Public Health Engineering Department, Rajasthan
SAUNI PKG‐5(A) PH‐II L‐4 RAJKOT,GUJARATH 3.79
Public Works Departments, Government of West Bengal
Copyright © 2017 NCC Limited 13Roads
Order Book (As on March 31, 2019) Details of Major Projects Completed
INR 86.38 bn Project Cost
Project Name Location
(INR bn)
Roads Agra Lucknow Expressways Uttar Pradesh 15.60
21.00%
Outer ring Road Project ‐ package II
Hyderabad 7.61
& III
Key Clientele Details of Major Projects Under Execution
Project Cost
Client Name Project Name Location
(INR bn)
National Highways Authority of India
Andhra Pradesh 6.54
UP Expressways Industrial Development Authority APCRDA‐LPS ZONE 3
Capital City Development and Management Corporation, Andhra Pradesh 14.66
Vijayawada APCRDA‐LAY12
Amaravati Development
Amaravati Development Corporation Andhra Pradesh 29.54
Corporation (6)
MSRDC Limited
Nagpur Mumbai express way Maharashtra 28.50
Copyright © 2017 NCC Limited 14Irrigation
Order Book (As on March 31, 2019) Details of Major Projects Completed
Irrigation
6.00%
Project Cost
INR 24.12 bn Project Name Location
(INR bn)
Gandak Canal Project Bihar 5.31
Sardar Sarovar Narmada Nigam Ltd. Gujarat 4.47
Water Resources Dept. Birpur Bihar 1.53
Details of Major Projects Under Execution
Key Clientele
Project Cost
Project Name Location
(INR bn)
Client Name
Lift Irrigation Project (PRLIS) Telangana 13.78
Sardar Sarovar Narmada Nigam Limited
Saradhi Barrage project Chattisgarh 3.99
Water Resources Department, Govt. of Bihar
Formation of Reservoir project –
Water Resources Department, Govt. of Chattisgarh Telangana 4.58
Baswapur
Govt. of Andhra Pradesh, Water resources department Andhra
Moderanisation of Midpennar South Canal 2.48
Pradesh
Copyright © 2017 NCC Limited 15Electrical
Details of Major Projects Completed
Order Book (As on March 31, 2019)
Electrical Project Cost
Project Name Location
4.00% (INR bn)
INR 17.57 bn
TG&D Corpn Ltd, Chennai‐Erode Tamilnadu 2.54
PVNL‐ RGGY ‐ Phase II Allahabad Uttar Pradesh 1.65
Power Grid Corpn.of India Ltd.
Andhra Pradesh 1.31
TW‐ 01 & TW‐02
MSEDCL – Nashik Maharashtra 0.74
Key Clientele Details of Major Projects Under Execution
Client Name Project Cost
Project Name Location
(INR bn)
Purvanchal vidyut Vitran Nigam Limited PVVNL, Varanasi‐ Saubhagya ‐
Uttar Pradesh 6.99
Mizapur
Dakshinanchal Vidyut Vitran Nigam Limited
PVVNL‐ Saubhagya‐ Meerut Uttar Pradesh 6.32
Madhyanchal Vidyut Vitran Nigam Limited
MVVNL‐ Saubhagya‐ Baharchi Uttar Pradesh 4.47
West Bengal State Electricity Distribution Co Ltd
DVVNL‐ Saubhagya‐ Mathura Uttar Pradesh 4.27
Jharkhand Bijili Vitran Nigam Limited
Jharkhand Bijili Vitran Nigam
Jharkhand 3.02
Power Grid Corpn.of India Ltd Limited, Ranchi
Maharashtra State Road Development Corporation Ltd DDUGJY ‐ Dumka Jharkhand 3.00
Copyright © 2017 NCC Limited 16KEY INVESTMENT HIGHLIGHTS
Key Investment Highlights
1
• More than three 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 412 bn (as on March 31, 2019) and order book to sales ratio of 3x provides
strong cash flow visibility for next 3 years
3
• Company has had stable financial performance in terms of margins and return metrics along with
Robust Financials with Strong low leverage
Credit Rating • India Ratings and ICRA have assigned the rating of A in view of reduction in principal repayments,
improving EBITDA Margins, lower than expected debt and plans for further asset sale.
4
• Board comprising of 5 Executive, 1 Non‐executive non‐independent and 5 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 181 Strong 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 bn) completion
• Outer ring Road Projects in Amaravthi Capital city, AP: INR 20.46 bn
Agra Lucknow Expressways Uttar Pradesh 15.60 2017‐18
(two packages)
ESIC Hospital & Medical
Karnataka 10.73 2014‐15 • Andhra Pradesh Township Infra Development Corporation: INR
College
IISCO Steel plant Blast 20.13 bn (two packages)
West Bengal 7.84 2014‐15
furnace • Building Project by NBCC, Nauroji Nagar, New Delhi: INR 19.49 bn
Water Supply Project Gujarat 8.07 2016‐17 • Nagpur Mumbai express way, Maharashtra : INR 28.50 bn
• APTIDCO (7 packages)‐ INR 60.57 bn
Details of Major Projects Under Execution
Key Clientele
Project
Project Name Location Cost
(INR bn) Client Name
Housing Projects (7) ‐ APTIDCO, 7 Locations in AP 60.57
Indian Railway Power Grid Indian Oil
Housing Project‐ NBCC, New Delhi 19.49
Coal India CIDCO Airport Authority of India
Amaravati Development Corporation (6) Andhra Pradesh 29.54
National Aluminum Steel Authority Hyderabad Growth
Nagpur Mumbai express way Maharashtra 28.50 Company of India Corridor
Water Supply Project Telangana 14.45 National Highways Bharat Heavy Maharashtra Airport
Authority of India Electricals Development
Pune Metro Package‐1 & 2 Maharashtra 8.47
NTPC NBCC Indian Army
Airport Authority of India, Lucknow Uttar Pradesh 10.48
PVVNL, Varansi‐ Saubhagya‐ Mizapur Uttar Pradesh 6.99
Copyright © 2017 NCC Limited 19Divisional Performance as on March 31, 2019
Buildings & Housing+ Roads (Rs. Bn) Water & Environment + Railways (Rs. Bn)
Revenues
Revenues
93,170
2,47,200 21,330 23,370 22,890 26,910
13,830
26,740 38,900 44,130 39,080 60,910
FY15 FY16 FY17 FY18 FY19 Orderbook
FY15 FY16 FY17 FY18 FY19 Orderbook
Electrical (Rs. Bn) Irrigation (Rs. Bn)
Revenues Revenues
24,120
17,570
9,630 23,670 2,630 4,310
5,170 8,280 4,820 3,480 2,400 3,050
FY15 FY16 FY17 FY18 FY19 Orderbook FY15 FY16 FY17 FY18 FY19 Orderbook
(1) Order book as on December 31, 2018
Copyright © 2017 NCC Limited 20Divisional Performance as on March 31, 2019
Mining (Rs. Mn) Others (Rs. Mn)
Revenues
Revenues
22,640
800 330 1,860 870 5,620 2,660 3,000
0 340 650
670
FY15 FY16 FY17 FY18 FY19 Orderbook
FY15 FY16 FY17 FY18 FY19 Orderbook
International (Rs. Mn)
Revenues
7,330 8,150 9,930 6,290 4,120 4,270
FY15 FY16 FY17 FY18 FY19 Orderbook
(2) Order book as on December 31, 2018
Copyright © 2017 NCC Limited 21Robust Financials with Strong Credit Rating (1/3)‐
3
Standalone Financials
Revenue (INR mn) Margins
121,980 11.8%
11.3%
85,491 80,321 76,752
8.9% 8.7%
4.6%
3.7%
2.8% 2.8%
FY16 FY17 FY 18 FY 19 FY 16 FY 17 FY 18 FY 19
EBITDA Margin PAT Margin
Return on Equity
Leverage
50000 11.9% 14.0%
Networth (INR mn) Total Debt (INR mn) D/E (x)
45000
RoE (%) 6.8% 25000 0.7000
12.0%
47567 19,930
40000
6.6% 19,951
0.6000
35000 7.4% 10.0%
20000 15,767
0.4x 0.5000
30000
32608 34423 42416 8.0%
0.6x 13,001
25000 15000 0.4000
6.0% 0.5x
20000
10000 0.3000
15000 4.0% 0.3x
0.2000
10000
5000
2.0%
5000 0.1000
0 0.0%
0 0.0000
FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19
Note:
1. All figures are derived from standalone financials
22
2. EBITDA Margin: EBITDA / Operating Revenue; PAT Margin = PAT / Total Revenue;
Copyright © 2017 NCC Limited 3. RoE = PAT / Net WorthRobust Financials with Strong Credit Rating (2/3)‐
3
Consolidated Financials
Consolidated Revenues (Rs. Mn) Margins
12.4%
130,200 10.5% 10.5%
96,595 92,045
84,920
7.4%
4.4%
2.0%
1.3%
0.4%
FY16 FY17 FY18 FY 19
FY 16 FY 17 FY 18 FY 19
EBITDA Margin PAT Margin
Leverage Position
35000 0.8x 0.7x 0.900x
30000 0.800x
0.6x 0.700x
25000 0.5x
0.600x
20000 0.500x
25,587
15000 31,267 0.400x
26,914
0.300x
10000 20,609
0.200x
5000 0.100x Note:
1. All figures are derived from consolidated financials
0 0.000x 2. EBITDA Margin: EBITDA / Operating Revenue;
FY16 FY17 FY18 FY19 3. PAT Margin = PAT / Total Revenue;
4. RoE = PAT / Net Worth
Total Debt (Rs.Mn) D/E (x)
Copyright © 2017 NCC Limited 233 Robust Financials with Strong Credit Rating (3/3)
Finance Cost (INR mn) (Actual / % of Turnover)
Finance Cost Comprises of: 5809 4514
3957 3789
• Interest on Working Capital Loans
• Interest on Mobilization Advances
• Commission on Bank Guarantees and Letter of Credits 5.95% 4.93% 4.94% 3.69%
• Other Financial Charges
FY 16 FY 17 FY 18 FY 19
Finance Cost % of Turnover
Working Capital Assistance from Banks
(As on March 31, 2019)
Sl. No. Particulars Limit (INR bn)
1. Cash Credit & WCDL 20.58 Rating of the Company:
2. Bank Guarantees 83.00
• External rating of the company is “A“ with stable outlook
3. Letter of Credit 10.00
with both the rating agencies i.e. ICRA and India Ratings
TOTAL 113.58
Copyright © 2017 NCC Limited 244 Professional Board (1/2)
Mr Hemant M Nerurkar Mr A A V Ranga Raju Mr A G K Raju
Chairman & Independent Director Managing Director Executive Director
He is a retired corporate executive with 44 years He has experience of 43 years in the construction He has 35 years of experience in the construction
of experience and infrastructure development and allied fields industry, finance and manufacturing and allied
fields
Mr A S N Raju Mr A V N Raju Mr J V Ranga Raju
Wholetime Director Wholetime Director Wholetime Director
He has experience of 38 years in the construction He has experience of 31 years in the construction He has experience of 33 years in the construction
industry industry and infrastructure industry
Copyright © 2017 NCC Limited 254 Professional Board (2/2)
Ms Renu Challu
Mr Utpal Sheth Independent Director
Non‐Executive Director
She is an Associate of the Indian
He is an investment analyst with 23 years of work Institute of Bankers and has an
experience experience of 44 years in the banking
industry and Corporate Management
Mr R V Shastri Dr. A. S. Durga Prasad Mr S Ravi
Independent Director Independent Director Independent Director
He is a retired CMD of Canara Bank He is an accomplished executive He is a Sr. Advocate, High Court of
and has 48 years of experience with over 37 years experience in Judicature at Hyderabad for the
Financial Management and Cost State of Telangana and the state of
Management in variety of Andhra Pradesh and has
industries experience in Taxation, Corporate
Laws and Commercial Laws.
Copyright © 2017 NCC Limited 265 Favorable Industry Dynamics (1/2)
Roads
Outlook on Construction / Execution by NHAI (in km)
6,000
5,000
5,053
• Expected investment of INR 4.3 tn in national highways from FY18‐22
4,000
4,678
• Expected investment of INR 4.4 tn in state highways from FY17‐21
3,577
• Momentum on account of completion of remaining length of NHDP
3,000
2,902
3,162
programme, new projects such as Bharat Mala, upgradation of SH to
2,627
2,000 NH, four‐laning of NH, and Pradhan Mantri Gram Sadak Yojna
1,000
‐
FY17 FY18E FY19E FY20E FY21E FY22E
Urban Infrastructure
Construction Spend in Urban Infra (INR bn)
• Construction spend in urban infrastructure to be ~INR 3.7 tn between FY18‐22 3,661
• In the Union Budget FY18, Centre allocated INR 162.4 bn for Swachh Bharat.
• Allocation of INR 500 bn for five years (FY16‐20) under AMRUT, as against INR
360 bn spent under JNNURM over the past five years
• Construction spends on metros in India will increase 1.9 times to ~INR 1.1 tn 1,802
over the next five years
• Also, government has decided to develop 100 cities as smart cities
FY13E to FY17E FY18P to FY22P
Copyright © 2017 NCC Limited 27
Source: Crisil5 Favorable Industry Dynamics (2/2)
160 Irrigation Budget Allocation for FY18 (INR bn) 2
140 1.8 1.8 • Investments to increase 1.4 times to touch INR 3 tn between FY18‐20
1.7
• With only 50% of the land irrigated, there is a huge unharnessed
143
1.6 1.6
120 124
121 1.4 1.4 potential for further investments
1.3
100
1.2 1.2 • Top six states ‐ Andhra Pradesh (including Telangana), Maharashtra,
95
80
82 81
1 Karnataka, Gujarat, Madhya Pradesh and Uttar Pradesh – account for
60 0.8 nearly 75% of the total investments during 2012 to 2017
40
0.6 • Over 2017‐18 to 2019‐20 as well, the share of the top six states are
0.4 expected to remain at ~75%, as investments in Andhra Pradesh,
20
0.2 Karnataka, Madhya Pradesh and Gujarat rise significantly
‐ 0
Telangana Karnataka Andhra Madhya Maharashtra Gujarat
Pradesh Pradesh
Real Estate
Real Estate Industry (INR tn)
• Projected to grow to Rs 8.5‐9 trillion by 2019 8.9
• Housing for All by 2022 provided a significant push to the housing sector
• Some of the schemes implemented by the government are:
o PMAY ‐ minimize the housing shortage faced by the urban poor
o Affordable housing ‐ Extension of CLSS to middle income group 7.6
o Implementation of RERA & GST
2017 2019
Copyright © 2017 NCC Limited 28
Source: CrisilCOMPANY 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 30Thank you
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