National Buildings Construction Corporation Ltd.

National Buildings Construction Corporation Ltd.PMC business segment includes providing management and consultancy services for a range of civil construction projectsincluding residential and commercial complexes, redevelopment of buildings and colonies, hospitals, educational institutions,border fencing as well as infrastructure projects such as roads, water supply systems, storm water systems and water storagesolutions. PMC services also extend to maintenance of projects in case the clients so desire. Company earns 5-10% of project costas PMC fees.Major clients include, Ministries such as Ministry of Urban Development, Home Affairs, Housing and Poverty Alleviation,Rural Development, Commerce & Industry, Labour & Employment, Information & Broadcasting, Petroleum & Natural Gas, Power,New & Renewable Energy, Defense, External Affairs, Commerce and Industry, Corporate Affairs, and Finance, apart from StateGovernments, ESIC, IITs and NITs amongst others.Civil infrastructure for power sector segment includes providing engineering and construction services for power projects,including design and execution of (i) civil and structural works for power projects (ii) cooling towers (iii) chimneys. NBCC’s clientsunder this segment include NTPC, BHEL, APGENCO, Uttar Pradesh Rajya Vidyut Utpadan Nigam, MAHAGENCO, Karnataka PowerCorporation etc. Few clients such as MHA, DVC, NTPC, EPFO etc. have given repeat orders from time to time.Real estate development segment focuses on principally two types of projects (i) residential projects and (ii) commercialprojects. Land Reserves aggregate approximately 138 acres which are located in Delhi, Khekhra (UP), Patna, Gurgaon, Kolkata,Kochi, Alwar, Lucknow, Meerut and Ghaziabad. NBCC continues to participate in auctions undertaken by the Government.Company is in negotiation with some state governments and central PSUs also for developing their land parcels jointly,where they will offer land as equity and NBCC will construct housing or commercial spaces and profit will be shared in ratio ofequity.In an effort to meet the shortage of accommodation for government officers, the GOI plans to build over 5,000 houses aspart of a 240 acre residential project in Ghitorni in south-west Delhi. Reportedly, project will be developed by NBCC as consultantin association with the Central Public Works Department (CPWD) to which the land belongs. The project would also include officespace which will be sold to raise money for the project. To meet the demand for housing of government officers and those workingwith PSUs and tribunals, NBCC and CPWD are already redeveloping six colonies in the capital. While NBCC is rebuilding NetajiNagar, Kasturba Nagar and Tyagraj Nagar, CPWD is redeveloping Sarojini Nagar, Mohammedpur and Sriniwaspuri.Company has executed first green building project with captive solar power, solar heating and energy saving system forMinistry of Corporate Affairs at Maneswra, Haryana. Company is constructing more Green Buildings and environmental projects.The Green Building having 5-Star GRIHA rating for Ministry of New and Renewable Energy (MNRE), and Platinum rating for CoalIndia Limited at Kolkata are under execution.Company enters in to joint ventures for specific construction projects which are short term in nature and are automaticallyclosed on completion of projects. Since Company does not intend to operate JV after completion of projects, its accounts are notconsolidated.National Buildings Construction Corporation Ltd. is also available on www.balance-equity.co.in

National Buildings Construction Corporation Ltd.Redevelopment of Government ColoniesAnew business opportunity in terms of redevelopment of old government colonies has been identified. This involvesredevelopment of colonies to build different categories of accommodation for officials of the Central Government. Thisredevelopment of government colonies is likely to generate new business and further improve the order book position of Company.All these redevelopment projects will have PPP model and revenue earned will be used for development of properties and differencewill go to the government. NBCC will earn fixed fee for development work.Some state governments also want to re-develop their old colonies, General Pool Residential Accommodations (GPRAs) andcommercial offices which were built in early 50’s. These will be on PPP mode where NBCC will invest money on construction andland will be their equity. Profit or space sharing will be done on that basis.Redevelopment of such localities in Delhi itself is expected to generate sizable volume of business for the Company goingforward. Already one project of this type having project cost of ` 4,264 Crs. has been awarded to the Company by Ministry of UrbanDevelopment, at a project management fee of 10% of the project cost for building 4,747 dwelling units of different categories, afterdemolishing around 2,330 old houses at East Kidwai Nagar, New Delhi for GPRA. The project covering a land area of 86 acres is tobe completed in 60 months. Company will make investment of ` 200 Crs. towards initial construction, which will carry a returnof 15%. Cost of the project will be recouped from lease sale of commercial office space (10% of total FAR permissible) – about 1million sq. ft. - and 10% of built up residential area for a period of 30 years to the government departments/ministries and PSUs.The contract also involves maintenance of GPRA for 30 years.Company was expecting ` 500 Crs. revenue from Kidwai Nagar Project in FY ’13, however, it could not start the project due to delaysin some of the approvals. It proposes to start the project in FY ’14 and book revenues.Real Estate ProjectsCompany has 20 projects across the country either under implementation or in the pipeline. At least 80% of these projectswill be residential and balance commercial. Residential will include both premium housing complexes as well as housing foreconomically weaker sections. Company is developing approx. 5000 flats pan India out of which 80% is in NCR area. It targets to keepmargins in the range of 15-20%, lower than its private sector counterparts. Company does PMC and EPC in house and outsourcesconstruction. Recently it purchased land in Delhi-NCR and Bhubaneswar. It purchased land at Alwar, Rajasthan (2 acres), Lucknow,UP (4 acres) and Ghaziabad near Delhi (4 acres) for ` 100 Crs. in FY ’12.Development of property at Alwar will be a mix of Residential and Commercial and started in February ’13. Lucknow propertywill be developed for commercial purposes only, while property at Ghaziabad will have both residential and commercial complexes.Development work at both Lucknow and Ghaziabad will start in FY ’14. Company also expects to start project in Kochi soon.National Buildings Construction Corporation Ltd. is also available on www.balance-equity.co.in

National Buildings Construction Corporation Ltd.Company is developing a commercial project at Kolkata, where the work was started in February ’13. NBCC was expectedto complete its commercial complex, NBCC centre in Okhla, New Delhi, having 2,25,833 sq. ft. build up space, in March ’13. Propertyat Okhla will start contributing to revenues from 2Q of FY ’14. Company expects to sell 50% of available space in FY ’14. Companysold part of the office space and shops in NBCC centre and part of dwelling units in two other residential complexes in Gurgaon,generating revenues in real estate segment and improving overall margins during FY ’13. Gurgaon project is expected to havecontributed ` 100 Crs. of revenues in Q4 of FY ’13 and profit of ` 39 Crs.ConcernsuCompletion of projects within budgeted cost and within scheduled time are important factors in determining the operatingmargins of the company.uFinancialsThe unique positioning of NBCC as an implementing agency for GOI related civil works where 90% of the business is on nominationbasis ensures steady order flows to the Company. As a result, slowdown in the economy has not made any major impact onthe Company either on its working operations or upon development of newbusiness.Competition among large number of construction companies in all three business segments, in which the company operatesin, also has resultant impact on the margins.Performance of the Company has been impressive in the last two years.While revenues went up by 9.6% in FY ’12 on y-o-y basis, it went down by7.2% in FY ’13 on y-o-y basis. However, net profit grew by 11.7% and 30.3%respectively in FY ’12 and FY ’13 over previous years.Company had comfortable work order in hand of ` 15,000 Crs.excluding real estate projects as on March ’13, including East Kidwai Nagarproject of ` 4,200 Crs. This is equivalent to about 3 years revenues. In FY’13, in first three quarters, Company reported ` 6,300 Crs. of order inflows.In FY ’14 Company expects to add orders worth ` 7,000-8,000 Crs. Orderbook was diversified, comprising sectors like hospitals, infrastructure,institutions and commercial and residential construction. Company hasadded orders for ` 1,326 Crs. of real estate projects in June ’13 quarter.Annual Segment ResultsSegment FY '12 FY '13Real EstateRevenues 185.13 526.85PBIT 23.13 125.68PBIT Margin (%) 12.49 23.85InfrastructureRevenues 99.48 133.14PBIT 10.88 31.49PBIT Margin (%) 10.94 23.65Civil ConstructionRevenues 3144.72 2526.83PBIT 249.15 143.24PBIT Margin (%) 7.92 5.67Note: Civil Construction includes Project ManagementConsultancyNational Buildings Construction Corporation Ltd. is also available on www.balance-equity.co.in

National Buildings Construction Corporation Ltd.Commentsu Company enjoys negative working capital as customers give 10-25% of project cost as advance at the time of signing theagreement.u Company is going to focus on Real Estate projects in FY ’14 and in the next 2-4 years. Other than that, the focus will also be onredevelopment of old government properties like government colonies in Delhi, Mumbai and Chennai. FAR in these cities has increasedas compared to what was allowed in the past.u As per latest reports, Company has about 150 acres of land throughout the country. Last year it spent ` 200 Crs. for landpurchase. In the current year it is looking at 10-12 land parcels for purchase and plans to spend around ` 400 Crs. towards landacquisition.u Government of Tripura has given land to NBCC for development. Similar such proposals are being considered by MP andOdisha governments.u Company expects to book ` 300-400 Crs. of real estate revenues in FY ’14. Also, management has guided for PAT of about` 225-250 Crs. in FY ’14 resulting in EPS of `19-21.Annual Financial ResultsYear Ended (` Crs.) FY '10 FY '11 FY '12 FY '13Revenues 2857.54 3146.05 3447.69 3198.48Change in Inventories -49.14 0 47.19 118.81Materials 115.53 139.92 92.27 233.12Exp in Piece rate work /Consultancy 2552.76 2700.22 2958.98 2468.63Employee Cost 106.2 128.97 157.21 170.76Other Exp 36.35 45.18 41.6 47.81Total Exp 2761.7 3014.29 3297.25 3039.13EBITDA 95.84 131.76 150.44 159.35EBITDA Margin (%) 3.35 4.19 4.36 4.98Depreciation 3.12 3.21 1.36 1.35Interest 4.87 4.32 7.39Taxation 58.1 69.29 99.66 94.14Other Income 86.75 85.41 134.62 148.97Non recurring items 26.16 5.97 -13.27 0Net Profit 142.66 146.32 163.38 212.83Net Profit Margin (%) 4.99 4.65 4.74 6.65Equity Capital (FV ` 10/-) 90 90 120 120Equity Shares (in Crs.) 9 9 12 12Reserves 456.53 564.14 675.49 830.69EPS (`) 15.85 16.26 13.62 17.74Book Value (`) 60.73 72.68 66.29 79.22ROE (%) 26.10 22.37 20.54 22.39Note:1) Company issued bonus shares in the ratio of 1:3 in FY ‘122) Govt. divested 10% of its stake in March ‘12 @ 106/-. Retail investors were offered 5% discount.National Buildings Construction Corporation Ltd. is also available on www.balance-equity.co.in

National Buildings Construction Corporation Ltd.Quarterly Financial ResultsQuarter Ended (` Crs.) June '12 Sept. '12 Dec. '12 March '13Revenues 541.87 649.84 716.22 1290.55Change in Inventories 0 0 5.04 113.77Materials 16.41 40.85 57.25 118.61Exp in Piece rate work /Consultancy 469.36 523.81 584.55 890.91Employee Cost 35.44 37.45 41.62 56.25Other Exp 12.47 12.01 10.29 13.04Total Exp 533.68 614.12 698.75 1192.58EBITDA 8.19 35.72 17.47 97.97EBITDA Margin (%) 1.51 5.50 2.44 7.59Depreciation 0.43 0.45 0.39 0.07Taxation 13.93 25.04 16.92 38.24Other Income 33.87 39.16 36.2 39.74Net Profit 27.7 49.39 36.36 99.4Net Profit Margin (%) 5.11 7.60 5.08 7.70Equity Capital (FV ` 10/-) 120 120 120 120Equity Shares (in Crs.) 12 12 12 12EPS (`) 2.31 4.12 3.03 8.28Segment Results June '12 Sept. '12 Dec. '12 March '13Real EstateRevenues 18.97 32.28 74.84 400.76PBIT 3.36 2.01 4.85 115.45PBIT Margin (%) 17.71 6.23 6.48 28.81ROE (%) 2.9 2.8 3.5 4.1InfrastructureRevenues 40.59 37.52 27.18 27.85PBIT 8.55 5.45 2.31 15.19PBIT Margin (%) 21.06 14.53 8.50 54.54Civil ConstructionRevenues 479.97 576.42 611.43 859PBIT 21.22 58.05 50.49 13.48PBIT Margin (%) 4.42 10.07 8.26 1.57Notes:1)Civil Construction includes Project Management Consultancy2) In view of the seasonal nature of the business June & Sept. quarters results may not be comparable with otherquarters results.National Buildings Construction Corporation Ltd. is also available on www.balance-equity.co.in