NBCC targets Rs 1 trillion work order book by March, plans India expansion

State-owned NBCC Ltd is targeting to reach Rs 1 lakh crore of consolidated order book by March next year from the current Rs 84,400 crore as the company looks to expand business across India.

NBCC (India) Ltd is into Project Management Consultancy (PMC), Engineering, Procurement and Construction (EPC) and real estate businesses.

"NBCC has an order book of around Rs 84,000 crore. We are targeting to take Rs 1 lakh crore at the end of this financial year," NBCC Chairman and Managing Director (CMD) K P Mahadevaswamy told investors.

According to a transcript of discussion with investors, he said the total order book at a consolidated level is Rs 84,400 crore, of which NBCC's share is about Rs 70,400 crore.

The remaining is order book of its subsidiaries.

The order book of HSCL stood at Rs 8,093 crore, HSCL Rs 5,915 crore, and NSL Rs 200 crore.

Of the total order book, Mahadevaswamy said the PMC/EPC contributes around 55 per cent and 45 per cent in redevelopment.

On execution timeline, he said the redevelopment projects take 4-5 years, whereas normal PMC takes only 1.5-2 years.

On behalf of the central government, NBCC has undertaken redevelopment work of many housing colonies in the national capital.

Recently, NBCC has been appointed as a project management consultant to complete Supertech Ltd's 16 real estate projects at nearly Rs 9,500 crore, a move that will provide relief to thousands of homebuyers.

NBCC is already completing stalled projects of the Amrapali Group.

In a regulatory filing on Thursday, the company said the National Company Law Appellate Tribunal (NCLAT), has "appointed NBCC (India) Ltd as Project Management Consultant for the completion of 16 projects of Supertech Ltd".

NBCC will complete 16 projects, comprising 49,748 houses in Uttar Pradesh, Uttarakhand, Haryana, and Karnakata.

"The tentative construction cost of the project is about Rs 9,445 crore, including 3 per cent contingency. The consultancy fee has been fixed as 8 per cent, including 1 per cent marketing fee," NBCC said.

The company has been appointed as a consultant "with no liability, and it will complete the Supertech projects within three years".

NBCC's total income rose to Rs 2,525.95 crore during the second quarter of this fiscal year from Rs 2,134.36 crore in the corresponding period of the preceding year.

The company posted a 53 per cent increase in consolidated net profit at Rs 125.13 crore for the September quarter as against Rs 81.90 crore in the year-ago period.