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State-run NBCC India will award tenders worth ₹5,000-6,000 crore in the next 4-5 months, as the company plans to accelerate its project tendering process with statutory approvals in place.
In the current fiscal year the company has awarded tenders worth ₹4,700 crore. It has a consolidated orderbook of ₹54,600 crore, with work ongoing on projects worth ₹17,000 crore. It has won orders worth ₹3,400 crore to date in FY23.
The company’s management recently had an interaction with Nuvama Institutional Equities. It has three main business verticals — project management consultancy, engineering procurement, and construction and real estate redevelopment.
Real estate monetisation is a key margin driver for the company and it has projects worth ₹22,000 crore that self-generate revenue. It has monetised nearly ₹5,840 crore at its Nauroji Nagar project in Delhi, with about half the inventory being sold out. The total sales potential in this project is ₹12,000 crore.
Construction work at Amrapali project in Noida — which was stuck for years — has accelerated; in the current financial year the company targets ₹1,700 crore revenue from the project. Nearly half of the project has been completed. Of the 46,475 housing units in the project, the company has completed 7,100 and handed over 2,550 flats to customers. The total project value is ₹8,370 crore and the value of the pending work is ₹4,280 crore, according to Nuvama Research.
The project management business, the source of the bulk of its revenue, is a low-margin business and, to offset this, NBCC is increasing its focus on international business. It is already involved in social housing projects in the Maldives while scouting for opportunities in African countries.
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