Latest news with #NBCC
Time of India
2 hours ago
- Business
- Time of India
NBCC defends bulk sale of new Amrapali flats to private builders
NOIDA : Facing protests from Amrapali homebuyers, National Buildings Construction Corporation (NBCC) has defended its decision to sell new flats in bulk to private developers, saying it was a "last resort" to raise funds for completing stalled housing projects. The state-run construction company's move has sparked outrage among homebuyers who alleged that on one hand, their long-awaited flats were being cancelled in the name of delayed payments, while on the other, new flats with additional FAR were being handed over to private developers at "discounted" rates. NBCC chairperson and managing director KP Mahadevaswamy , however, maintained that the decision was necessary given the severe financial constraints. "We tried retail sales first, but they didn't work. Bulk sale was our final option to raise funds quickly without burdening existing buyers," Mahadevaswamy told TOI. When NBCC took charge of Amrapali projects, it inherited the responsibility of completing 38,000 flats for around 46,000 buyers. The company needed Rs 100 crore a month but was receiving only half that amount. Initial estimates suggested a total fund requirement of Rs 10,000 crore, prompting NBCC to award 24 construction contracts worth Rs 8,200 crore. The Covid pandemic, however, disrupted these plans. Payments from buyers slowed dramatically, contractors threatened to abandon projects, and labour payments were delayed. Despite securing loans from the SWAMIH Fund and a banking consortium led by Bank of Baroda, NBCC's financial challenges persisted. "Around 8,000 buyers had stopped payments. In 2021, the Supreme Court ordered us to give them 15 days to make payments, after which we could cancel the flats and sell them. We sent emails, issued letters, and advertised their names as defaulters. But many still did not respond. However, over time, this number reduced to about 2,000. Now that property values have gone up, they are protesting," Mahadevaswamy said. However, with an objective to complete all units, NBCC purchased additional floor area ratio (FAR), from 2.75 to 3.5, to sell them to developers. Initially, the company tried to sell new units to be built on their own, but failed to get a good response. It was the Supreme Court and court receiver committee that asked NBCC to purchase additional FAR. Currently, around Rs 893 crore has been paid to Noida and Greater Noida Authority out of a total of Rs 936 crore for purchasable FAR. In terms of land area, the total development related to the purchasable FAR allows 82 acres in six projects. This prompted the move to sell flats in bulk. The strategy has so far resulted in the sale of 3,237 flats across four projects — Aspire Centurion Park, Aspire Dream Valley, Aspire Leisure Park, and Aspire Silicon City. These sales are expected to generate Rs 6,480 crore, with Rs 648 crore already received from developers. Developers including Gaursons, Happy Valley Infra, and AU Real Estate Services won bids in these projects. NBCC emphasised that these companies were merely sellers, with all construction remaining under its supervision. Homebuyers, however, alleged foul play in the decision. "People waited over a decade and invested their life's savings. Now, their flats are being cancelled, but bulk flats are sold to new investors," said Abhishek Kumar, president of Noida Extension Flat Owners' Welfare Association (NEFOWA). Kumar challenged NBCC's notification process for defaulters, claiming many buyers never received proper communication about payment deadlines. Almost 3,000 buyers whose flats were cancelled are planning legal action. "They say they published defaulters' names in newspapers. But not everyone saw those ads. Some emails to the receiver's office bounced as well," he added. NBCC insisted that the bulk sale process was transparent and court-monitored, with the prices of flats set after consulting international property consultants. "All payments will go directly to the court receiver's account — not of the developers," Mahadevaswamy said. He added that NBCC had clearly instructed developers not to mislead buyers or make exaggerated claims. "If they do, we will take action," he said. The company said it also implemented measures to prevent monopoly by limiting developers to two project packages each. The developers must pay 100% of the reserve price regardless of their ability to resell the flats. A construction-linked payment plan is in place, requiring 10% payment upfront and the remainder over three to five years. "These builders are only sellers, the construction is solely with us. Everything is being monitored by the Supreme Court. Our sole objective is to complete these stalled flats and deliver them to people who have waited far too long," Mahadevaswamy said. Gaursons chairperson and MD Manoj Gaur claimed many of these protesters were not even genuine buyers. "These are people whose flats were cancelled for non-payment. They failed to prove their bonafide," he added.
Yahoo
5 hours ago
- Business
- Yahoo
NBCC India Ltd (BOM:534309) Q4 2025 Earnings Call Highlights: Record Growth and Strategic Challenges
Release Date: May 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. NBCC India Ltd (BOM:534309) achieved a significant 34% year-on-year growth in profit after tax for the quarter. The company secured a historical amount of business, with a 265% increase in standalone business secured from the previous year. NBCC's order book has crossed the 1 trillion mark, highlighting exponential growth in the redevelopment sector. The company successfully sold around 6,800 residential units in the Amrapali Phase two project, aiding project execution. NBCC ranked second among all CPACs and first in the consultancy and construction sector according to the Department of Public Enterprises' performance rating. The company faced an exceptional item of INR 95.65 crore due to environmental clearance issues in Kerala, impacting financial results. There are pending environmental clearances for some projects, which could delay execution timelines. The company has a conservative revenue guidance for the current year despite a strong order book, due to potential delays in statutory approvals. NBCC's real estate projects are subject to market risks and require significant time for completion and revenue recognition. The company faces competition from other government agencies like IRCON and Bridge and Roof in securing new projects. Q: Given the order book of 120,000 crore on a consolidated basis, what is the duration for executing these orders? Also, what revenue can we expect for the current financial year? A: Typically, PMC projects take 2-3 years to complete, while redevelopment projects require 3-4 years due to the need for clearances and funding. We aim to achieve a revenue of more than 15,000 to 16,000 crore this year. Regarding the exceptional item, it is a one-time occurrence related to environmental issues in Kerala, and not recurring. (Respondent: Unidentified_3, Unidentified_5) Q: What is the breakdown of the order book in terms of PMC and redevelopment? Also, can you explain the exceptional item related to the Kerala project? A: The order book consists of 48% PMC and 52% redevelopment. The Kerala project is a developed project where environmental clearance was not initially required. However, due to a Supreme Court ruling, we have provided for a loss of INR 80 crore as a precaution. (Respondent: Unidentified_3, Unidentified_5) Q: What is the expected order intake for the current year, and are there any specific projects you anticipate securing soon? A: We expect to add around 22,000 to 25,000 crore in orders, with discussions ongoing with various state governments, including Rajasthan, Telangana, and Andaman and Nicobar. (Respondent: Unidentified_3) Q: Can you provide guidance on the revenue and profitability for the next few years? A: For the next three years, we target a topline of around 25,000 crore and a bottom line of around 2,000 crore. The order book is expected to reach 1.5 to 2 lakh crore. (Respondent: Unidentified_3) Q: How does NBCC plan to capitalize on opportunities in the Mumbai market? A: We have signed an MOU with Mahapreet for redevelopment projects in Thane and other areas, valued at around 25,000 crore. We are also targeting distressed properties and underutilized land parcels for redevelopment. (Respondent: Unidentified_3) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
14 hours ago
- Business
- Time of India
‘Last resort': NBCC defends bulk sale of new Amrapali flats to private builders to raise funds for stalled projects
Noida: Facing protests from Amrapali homebuyers, National Buildings Construction Corporation (NBCC) has defended its decision to sell new flats in bulk to private developers, saying it was a "last resort" to raise funds for completing stalled housing projects. The state-run construction company's move has sparked outrage among homebuyers who alleged that on one hand, their long-awaited flats were being cancelled in the name of delayed payments, while on the other, new flats with additional FAR were being handed over to private developers at "discounted" rates. NBCC chairperson and managing director KP Mahadevaswamy, however, maintained that the decision was necessary given the severe financial constraints. "We tried retail sales first, but they didn't work. Bulk sale was our final option to raise funds quickly without burdening existing buyers," Mahadevaswamy told TOI. When NBCC took charge of Amrapali projects, it inherited the responsibility of completing 38,000 flats for around 46,000 buyers. The company needed Rs 100 crore a month but was receiving only half that amount. Initial estimates suggested a total fund requirement of Rs 10,000 crore, prompting NBCC to award 24 construction contracts worth Rs 8,200 crore. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo The Covid pandemic, however, disrupted these plans. Payments from buyers slowed dramatically, contractors threatened to abandon projects, and labour payments were delayed. Despite securing loans from the SWAMIH Fund and a banking consortium led by Bank of Baroda, NBCC's financial challenges persisted. "Around 8,000 buyers had stopped payments. In 2021, the Supreme Court ordered us to give them 15 days to make payments, after which we could cancel the flats and sell them. We sent emails, issued letters, and advertised their names as defaulters. But many still did not respond. However, over time, this number reduced to about 2,000. Now that property values have gone up, they are protesting," Mahadevaswamy said. However, with an objective to complete all units, NBCC purchased additional floor area ratio (FAR), from 2.75 to 3.5, to sell them to developers. Initially, the company tried to sell new units to be built on their own, but failed to get a good response. It was the Supreme Court and court receiver committee that asked NBCC to purchase additional FAR. Currently, around Rs 893 crore has been paid to Noida and Greater Noida Authority out of a total of Rs 936 crore for purchasable FAR. In terms of land area, the total development related to the purchasable FAR allows 82 acres in six projects. This prompted the move to sell flats in bulk. The strategy has so far resulted in the sale of 3,237 flats across four projects — Aspire Centurion Park, Aspire Dream Valley, Aspire Leisure Park, and Aspire Silicon City. These sales are expected to generate Rs 6,480 crore, with Rs 648 crore already received from developers. Developers including Gaursons, Happy Valley Infra, and AU Real Estate Services won bids in these projects. NBCC emphasised that these companies were merely sellers, with all construction remaining under its supervision. Homebuyers, however, alleged foul play in the decision. "People waited over a decade and invested their life's savings. Now, their flats are being cancelled, but bulk flats are sold to new investors," said Abhishek Kumar, president of Noida Extension Flat Owners' Welfare Association (NEFOWA). Kumar challenged NBCC's notification process for defaulters, claiming many buyers never received proper communication about payment deadlines. Almost 3,000 buyers whose flats were cancelled are planning legal action. "They say they published defaulters' names in newspapers. But not everyone saw those ads. Some emails to the receiver's office bounced as well," he added. NBCC insisted that the bulk sale process was transparent and court-monitored, with the prices of flats set after consulting international property consultants. "All payments will go directly to the court receiver's account — not of the developers," Mahadevaswamy said. He added that NBCC had clearly instructed developers not to mislead buyers or make exaggerated claims. "If they do, we will take action," he said. The company said it also implemented measures to prevent monopoly by limiting developers to two project packages each. The developers must pay 100% of the reserve price regardless of their ability to resell the flats. A construction-linked payment plan is in place, requiring 10% payment upfront and the remainder over three to five years. "These builders are only sellers, the construction is solely with us. Everything is being monitored by the Supreme Court. Our sole objective is to complete these stalled flats and deliver them to people who have waited far too long," Mahadevaswamy said. Gaursons chairperson and MD Manoj Gaur claimed many of these protesters were not even genuine buyers. "These are people whose flats were cancelled for non-payment. They failed to prove their bonafide," he added.
Mint
3 days ago
- Business
- Mint
NBCC share price rises 7% post Q4 Results, Dividend Announcement. Do You Own?
Stock Market Today: NBCC share price gained 7% during the intraday trades `post Q4 Results, Dividend Announcement. Do You Own? On Thursday, May 29, after the market hours, state-owned and Navratna PSU NBCC (India) Ltd. announced a 29.4% YoY jump in net profit for the fourth quarter that ended on March 31, 2025, from Rs136.08 crore in Q4FY24 to ₹ 1725.91 crore in Q4FY25. Revenue from operations reported by NBCC India during the January- March 2025 crore increase over 16% to ₹ 4,642.55 crore compared to ₹ 3,996.31 crore in the year ago January- March 2024 quarter. The Earnings before Interest Tax Depreciation and amortisation or EBITDA increased slightly more than 19% year over year to around ₹ 290 crore from ₹ 243.2 crore during the year ago quarter. The EBITDA margin was 6.25%, down from 6.09% during the same time period in the prior fiscal year. Subject to shareholder approval at the next Annual General Meeting, the Board of Directors of NBCC recommended a final dividend for FY 2024–2025 at 14%, or Rs. 0.14 /- each paid-up equity share of Rs. 1/-each (subject to TDS deduction). If a final dividend is approved at the AGM, it will be paid out within 30 days after the declaration date, said the company The NBCC share price has recently witnessed a breakout from a Head & Shoulders pattern on the daily timeframe, supported by a notable surge in trading volumes, said Sudeep Shah, Deputy Vice President, Head of Technical & Derivatives Research (Equity) at Sbi Securities. This technical development indicates a shift in sentiment and suggests the potential for further upside. Furthermore, the stock is currently trading comfortably above both its short-term and long-term moving averages, which is a strong bullish sign and reflects sustained buying interest. The daily RSI is also positioned in bullish territory, highlighting the underlying strength in momentum. Collectively, these factors point to a positive outlook for the stock in the near term, said Shah. As per the measure rule of Head & Shoulders pattern, the upside target is placed at ₹ 126, followed by ₹ 136 in the short-term. While, on the downside, the zone of ₹ 110-109 is likely to provide the cushion in case of any immediate decline, added Shah Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Business Upturn
3 days ago
- Business
- Business Upturn
NBCC shares jump 7% as Q4 EBITDA rises 19.3% YoY to Rs 290 crore
NBCC (India) Ltd. shares rose 7% after the company reported a solid financial performance for the fourth quarter ended March 31, 2025. As of 1:55 PM, the shares were trading 7.17% higher at Rs 124.53. The public sector enterprise posted a 29.4% year-on-year increase in net profit, reaching ₹176 crore, compared to ₹136 crore in the same quarter last year. Revenue for the quarter stood at ₹4,642.5 crore, marking a 16.2% rise from ₹3,996.3 crore reported in Q4FY24. The company also saw an improvement in its operating performance. EBITDA came in at ₹290 crore, up 19.3% from ₹243.2 crore a year ago. The EBITDA margin expanded slightly to 6.25%, compared to 6.09% in the corresponding period of the previous fiscal. In addition to the earnings update, NBCC's board recommended a final dividend of ₹0.14 per equity share for the financial year 2024–25. The proposed dividend is subject to shareholder approval at the upcoming Annual General Meeting and is expected to be paid within 30 days from the date of declaration. NBCC shares opened at ₹117.80, hitting a high of ₹126.70 and a low of ₹113.94 during the session. The stock remains volatile but shows strong momentum, nearing its 52-week high of ₹139.83. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
