NBCC (India) Ltd
NSE:NBCC
Earnings Call Analysis
Q3-2024 Analysis
NBCC (India) Ltd
The company presented a robust order backlog, with a consolidated order book reaching INR 5,300 crores moving into stand-alone projects of approximately INR 5,430 crores. They have set a target for the next financial year around INR 12,000 crores, marking a significant hike from the current target of INR 8,000 crores. This comes after already rendering INR 6,000 crores awarded this year and with INR 21,000 crores already committed to various projects.
Progress continues with vigour as INR 195 crores were awarded for the WTC project, which now stands at 93% completion, and full completion expected by March. Sales are also strong, with a target of INR 13,000 crores to sell, out of which INR 10,000 crores have already been achieved, leaving INR 3,000 crores to be sold before March.
The company signaled a healthy margin environment. Current year EBITDA margins are projecting at 5% to 5.5%, with a slight improvement expected next year, rising to 5.5% to 6%. PAT margins echo this performance, maintaining around 5% and anticipated to grow to more than 5%.
Financial liquidity remains a strong point with a healthy cash balance of INR 4,800 crores on a consolidated basis. The company's own funds are around INR 1,000 crores, bolstered by deserved seed money from prior redevelopment projects. This financial backing will support ongoing and future business endeavors.
For the upcoming quarter, the company sets a definitive revenue goal, pegging it at around INR 4,000 crores on a consolidated basis, thereby achieving INR 3,500 to INR 4,000 crores.
Looking five years ahead, the company targets a revenue guidance of around INR 25,000 crores, with the real estate business projected to contribute 5% to 10% of this figure. Furthermore, there are expectations to reach a PAT margin of 8% over this period.
The company is in active discussions to further acquire valuable land parcels, engaging with several PSUs and anticipating deals exceeding INR 10,000 crores in value. These transactions are expected to be formalized either this year or in the first quarter of the next year.
Regarding fiscal expectations, the company is optimistic, considering an increase of at least 20% to 25% in revenue for the next fiscal year, albeit acknowledging initial due diligence and clearances that may be necessary.
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Ladies and gentlemen, good day, and welcome to NBCC India Limited 3Q FY '24 Results Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Romesh shot from Nomura. Thank you, and over to you, sir.
Thank you, Savi. Good morning, everyone. On the behalf of Nomura and NBCC, we welcome you all for 3Q FY '24 Results Conference Call of NBCC Limited. We are happy to host the management of NBCC Limited. From the management side, today, we have Sri Kellambally Mahadevaswamy, Chairman, Comanaging Director; Shrimati B.K. Sokhey, Director of Finance; Shri Salama, Director Projects; Shri Rajendra Chaudhari, Senior Executive Director, Engineering; Shrimati Reshma Duane, Executive Director, Engineering; Also, we have Investor Relations, Balkishan Singla. So now we have -- we hand over the call to management to give initial remarks on the results and the current business outlook. Over to you, sir. Thank you.
Good morning, everyone. I am K.P. Mahadevaswamy, CMD NBCC. On behalf of my team, I extend a warm welcome to you and appreciate your presence in today's earning call for third quarter ended 31st December 2023. I have with me our other directors and senior management of NBCC. First of all, I express sincere gratitude to all shareholders, particularly you, the investors who strongly believe in NBCC system, which helped to post all-time high share price recently. If I recall last February when I took responsibility of Director Commercial, it was around INR 35, and now it is multiple times. I assure you as the CMD of this company, in coming years, our performing release elevate much fold. In terms of consolidated operation and execution on 9 months basis, we have achieved INR 6,566 crores of total income and INR 361 crores PBT, which is 63% higher on year-on-year basis, and significant 66% increase in pace for 9 months. I want to share a few key achievement of NBCC. Regarding development project. At consolidated level, NBCC has secured business of INR 10,004 during last 9 months, whereas the same figure was INR 6,400 crores in the last year, previous year, update regarding Amrapali projects. Andares has contributed INR 1,017 crores turnover in NBCC top line. I'm happy to share that out of 38,000 housing units, 16,000 units are already completed and ending or in process. Additional another 14,000 units will be ready at the earliest by December 2024. NBCC along with Aspire team has achieved a sale of 6,000 units in Amrapali project with the total sale value of INR 3,500 crores. Updates regarding development projects. Margin could trade center is 93% completed. Netaji project first phase is going on with the project worth of INR 1,500 crores, it has been achieved financial project percentages, 48% completed. Arginase, this is a large project and work in phases is going on with the project value of INR 4,200 crores. NBCC Real Estate. NBCC is putting dedicated efforts in this direction to reach maximum potential by us and increase the sales volume as well as profitability. We are already able to sell INR 117 crores of NBCC real estate in comparison with INR 37 crores of last year, 9 months. Redevelopment on the real estate sale, development real at sale before March '24, we'll be able to sell the remaining units after construction, project tenders out for execution in current financial year around INR 6,800 crores worth of projects have been awarded, which will start and grown very soon and help to increase our turnover. Other major achievements. In aggression of in Sambalpur by adorable Prime Minister, a new campus spread in 200 acres. Under the world's largest grain storage plant in cooperative sector, NBCC has signed a total 175 MOU with the PAC and cooperative banks still lay in different states across India. National Dental Commission was integrated by health minister. Under the President of India integrated by NBCC build Colson, Andra Union Minister and Home and as well as cooperation integrated offices in World Trade Center. Ander Bala, President of India Integrated NBCC ran Replica of Historic Black Posts, Andaman President, upgraded NBCC for a timely completion of the tales Puran black posts in India. Major opportunities and focus area in NBCC in upcoming months, opportunity in housing sector. Government of India and union finances boost to affordable housing by providing to the middle class income growth. NBCC is assessing this opportunity and are in talks with various format agencies, including few state governments. Land monetization. After we set a slating Board monetization project, NBCC is exploring feasibility of fuel land parcel across pan India aligned with the PSU land parcels. Dozens of hacker plan with them in all major cities. After a successful journey of redevelopment business model, NBCC is hiring some major work in the segment of upcoming months and cash Amrapali project experience and expertise examining feasibility of few more stress VLS projects. We are exploring other opportunities in NCR, Mumbai regions where big problems. Overseas focus, we already set up concrete foot in overseas, particularly African countries, Maldives, Marches, social housing work is in full swing. In Maldives, we are hoping that we'll tap some business in Arabia and Africa in coming months. NBCC restores. We are also reaching out 2 tire cities for upcoming real estate projects. Diversification. We are also taking some steps to diversify NBCC business, which includes recently secured projects, metro railways. Thank you, Ananda. Now the forum is open for discussion.
[Operator Instructions] The first question is from the line of Shivam Ozan, Individual Investor.
Sir, what would be the update on your guidance of the top line of INR 11,000 crores in this fiscal and INR 23,000 crores that you mentioned in the next fiscal?
Definitely, we will achieve between INR 10,000 crores to INR 11,000 crores.
And sir, for the next fiscal year?
Next fiscal year at INR 13,000 crores.
Next fiscal year would be INR 13,000 crores.
Yes.
Sir, you mentioned somewhere around about for INR 25,000 crores. Am I right?
5 years.
5 years, next 5 years. In next 5 years.
The next question is from the line of Pankaj Kumar from Kotak Securities.
Sir, I would like to know about the order inflows that we had in the 9 months. And overall, what is the target for FY '24 and '25?
So 9 months order already INR 10,000 crores we have secured. Another INR 10,000 crores we are expecting current year only within these 3 months by March. And what is the other question you asked?
About next year, FY '25, what we are targeting to?
Business loan. The new orders in flow in.
Any yes, business development you can for the next.
Pardon me?
INR 2,000 crores next year onwards, we can easily secure more than INR 30 crores. As said, this number is on control business, I believe. So if you can help us with the stand-alone numbers.
Consolidated outlook. But stand-alone, you can say, INR 15,000 to INR 16,000 crores, consolidated only INR 3 rotor, INR 400 crores only we are getting from other subsidiaries or is major.
Okay. Okay. And sir, in terms of overall this order book, what is the order backlog at the end of 9 months.
INR 5,300 crores in a consolidated basis.
Okay. So stand-alone would be around INR 45,000.
To INR 5,430 something.
And sir, you were targeting to over some INR 9,600 crores in the current financial year, so the project that you were targeting earlier? So what is the revised target for the current year as well as what you are planning to award in the next financial year?
Next financial year, we will go into our around INR 20,000 crores -- sorry, INR 12,000 crores. Currently, INR 8,000 crores we are targeting.
Okay. And out of the total INR 55,000 crore order book, what portion we have already awarded?
Already INR 6,000 are awarded during this year.
The total of this INR 55,000 crores when you're saying this is the order backlog. So how much of the project that is where the...
Where we have already awarded the work INR 21,000 crores in a consolidated level, INR 21,000 already or debt.
Okay. So large part is still what you are saying for the that we...
The Sand is in process that we are awarding.
Okay. And sir, in terms of 7 GPRA project, which I believe is around INR 24,000 crores of construction work. So there, what is the progress in terms of what percentage of work is already awarded and what is yet to be awarded. If you can help us with the project-wise in all 3?
INR 195 crores were currently awarded that is WTC, 93% completed. By March, we will go to complete all the physical and SLS financial year going to complete. Similarly, the sale around INR 13,000 crores we have to sell out of which 10,000 already were sell out, the remaining INR 3,000 crores were going to sell before March. Regarding page, we are already awarded on GPO to the agency, wherein almost 50% where we have completed by next December. Before December, we're going to complete the metaling. Similarly, aging, have already awarded 5 packages out of which all are in running conditions. One project from 800 units you're going to hand it out shortly to our MOU.
So this slots a large part of, I believe, around INR 15,000 crores the construction?
Yes, yes, INR 13,000 crores, INR 13,000 crore INR 400.
And is this -- what value come can help us till where the construction is going or what?
It is going in different phases in each package on package, you'll going to partly ended our March, around 800 units will going to end it over by March. So the rest is in progress by other strategies in different stages. Each package is in different packages. Recently, we awarded 3 packages. So all the 3 packages, they are started. It's 2 packages we are awarded with main technology, one with precast technology.
So -- or looking for in value terms, what amount is already in construction?
INR 4,200 crores allay was it.
INR 4,200 crores in the other projects?
Yes. And in Metals, page has a 1,450 already awarded. 2 tender will go to publish by within 1 week. Around INR 2,000 crores or is in credit, the center is ready, we'll go to publish at the earliest.
The next question is from the line of Vasudev from Nuvama.
Sir, my first question is on the Amrapali project. So how are we expecting some additional order what's the status over there? And currently, what is our pending order book from the value.
Out of INR 8,000 crores, already, we have completed around INR 6,000. The balance of floors -- regarding new business, that is the additional fair, we're going to get further less. I think by this weekend, we're going to get 8,000 business.
Okay. Okay. Then next, sir, on the real estate front, so you said that we've sold over INR 117 crores in this year. So what is your plan for Q4 and FY '25? And also, if you can help that what is your current line of Globe one, sir?
Another INR 50 crores, I think we're going to sell during this year real estate project. Total, we have INR 600 crore inventory out of 117 already we have sell it out. So another INR 50 crores by March, we'll go to sale.
Okay. Okay. That's on -- the redevelopment front, also, you said that we'll sell all of it by the end of this year. So what is the value if you could provide?
That is -- can you -- real estate or development you're saying? Redevelopment only I cannot say, we have to sell a 70 per -- there is no sale in development. It is government cloning.
Okay. Okay. So taking it from the previous participant's question, so you give guidance for revenues and order intake for then what is the path on EBITDA margins that we're looking at?
Top line, during this year.
This year and next year, our EBITDA and PAT margins?
Your PAT margin will be around -- EBITDA, 5.5% to 6% next year. Current year, 5% to 5.5%.
Okay. And PAT margins?
PAT margins around 5%. It will be more than 5%.
Okay. Okay. Sure, sir. And sir, last question. So out of the INR 5,300 crores of order book that we have -- can you give us a split between P&C and redevelopment? And what is the consolidated cash balance?
55%. Around 92% in PMC only. So only 3%, 4% that is on real estate and 3%, 4% for EPC contracts.
As regards to the cash balance, we have the cash balance of INR 4,800 crores on consolidated basis. And we see the cash balance out of that is INR 2,100 crores. And our own funds are around INR 1,000 crores as the NBCC has received the -- received back the seed money, which we have invested in the redevelopment project of 7 GPRA and which will be further disputed in the furtherance of the business of convergence.
Okay. So then what is the money that it is still outstanding and interest on that?
Yes. Sales money now outstanding as on today is INR 81 crores. And the outstanding interest is around INR 210 crores, which we are expecting to get back in the next financial year in the 1st week of next financial year. Against the interest portion, right?
The next question is from the line of Atul Husa, Individual Investor.
So my question is there is 2 questions. The first is, as you told earlier, that this year, you will achieve around 10,500 revenue. So may I ask you, are you -- I mean, this is a conservative number or this is final number for this year?
This is final number. I can say a final number.
Okay. And what -- so it means that consolidated basis, you will achieve around INR 4,000 crores in this quarter? This quarter number. This quarter, next quarter, what revenue will achieve consolidated basis?
INR 3,500 to INR 4,000.
INR 4,000. And what PAT we can expect? Margin?
Margin, PAT margin only quarter you were saying or...
Quarter, quarter, quarter.
On annual basis, we are expecting 5% yes.
5%, okay. And as you told earlier, I mean, I'm asking after 5 years, you would target this company about 25,000 revenue guidance. So may I ask out of this 25,000 how -- I mean you said for the real estate business out of this 25,000 in maybe in a percentage number, not in accurate is just real estate business.
Real estate business?
Yes.
5% to 10%.
Because you set PAT around INR 2,000 crores, I heard about somewhere. So it means that 8% you will achieve at the PAT margin after 5 years.
That is true because our breakeven is only INR 5,000. Beyond INR 5,000, whatever turnover we will achieve profit will be added. So that is the reason.
So this is also a conservative basis, you will achieve INR 2,000 crores next 5 years, early.
We have our own there.
Okay. And 1 more question. Next year, I mean, there are a lot of inventory and a lot of unfinished projects in -- I mean, nearby really like Netaji and Gordon. So are you pushing your company to get like Amrapali, kind of like other projects, not -- I'm not talking about Amrapali next phase, for other developer projects.
Already planning as we -- already, we are talking with the RERA Ariana. RERA already called us, they wanted to start the star projects in Ariana, that is in Goa. Not also their Naada Unitec project, Supertech, we are discussing, but I think we'll go to get the earlier Sara. Rear are we are talking with them. And I think...
So this revenue you didn't calculate in your next year target? I mean maybe this is extra revenue we'll get.
Currently, we have not considered this one.
Okay. So in case if you will get these projects, it will add, let's say, 10%, 20% more revenue in that your projection?
Absolutely. Definitely.
Definitely. Okay. So like this projection is just based on your normal projects, redevelopment and other projects, not with this extra, what maybe you will get through government.
But we are not considered. So far we are...
So then it will -- I mean, there is chances to more revenue and profit in your top line and bottom line growth.
Okay.
The next follow-up question is from the line of Shivam, Individual Investor.
Sir, I have 2 questions. First would be that you have a lot of land bank with you. So as the real estate cycle is moving ahead and it's going at a positive rate. So when do you expect to launch in our on -- or develop these land banks? And the second would be that the PSU land bank opportunity, which you told. So how many worth of -- can you give a projection that how many worth of opportunity can be the PSU redevelopment that you're talking across India?
Yes, having land parcel of more than, I think, in lakh access. So we are presently discussing with 2, 3 PSUs. So it will be more than INR 10,000 crores value. So that, I think we're going to sign an MOU either this year or first quarter of next year. Similarly, we have -- 3 land parcel in Jaipur, 1 lane Coimbatore and Patna. So we're going to launch this project by this year-end March or first week of April. On our 2 project, we are going to start immediately.
So sir, you are saying that around INR 13,000 crores, you will do in next fiscal year on consolidated basis. And if you get any PSU redevelopment opportunity, that would be the cherry on cake.
Yes. Yes.
So how much can we expect on the optimism side that how much can be the revenue if everything goes right in for the next fiscal year?
At least 20%, I can say, in percentage, at least 20% because the first year -- so initially some due diligence, supplement of consultant, all these clearances and all it will take. But next year onwards, it will be, I think, more than 20%, 25%.
And sir, 1 more clarification on your INR 25,000 crores guidance. So at what fiscal year you will be able to achieve INR 25,000 crores top line consolidated basis? Like you can mention for fiscal year '26, '25 or anything?
The next year, 5 years.
Next 5 years, like from which fiscal you'll start generating INR 25,000 crores or it won't be the sum of 5 years now.
'27, '28.
FY '27, '28?
Yes.
[Operator Instructions] The next question is from the line of Dr. Akshay Bates from NBCC.
Actually, my question is exceptional losses of around INR 15 crores to INR 20 crores are we seeing almost in every quarter. So is it going to continue or reduce in future? Or what are the spacing.
What is your question?
You were talking about the induction items?
Yes, yes.
No, Vikas, and now this has been provided fully by the Board. And we have given the option for the reconstruction of the flat to all the buyers and the offer has also been given to the national consumer real forum. And -- but their court case is still pending, but we are hopeful that the buyers will consider our offer and any further cost loss.
Rather their request, partly, they are requesting to reconstruct. So that purpose only, we had created exceptional item. I think in the future, it won't come.
Okay. Okay. And 1 more thing. As far as your balance sheet continues losses have been posted in real estate segment. Real Estate segment has not been in profit in past 2, 3 quarters. So what -- can you give us a picture on that what is the reason for that?
The reason is mainly the provision towards this loss of 37 days.
Real Estate project.
Okay. Okay. And my next question is to Komar. Sir, as per your latest interview, you have aspire to be a Maharatna company? Yes. And Maharatna company is at least yearly from the last -- previous 3 years, we should post a profit of INR 5,000 crores annually. So what is the road map and time line to achieve the same become the Maharatna company?
Next 5 years, we are going to Bayway, Maharatna status not -- we're going to get Maharatna status. For another 5 years, I think we're going to get a road map for Maharatna we are making.
Okay. Okay. Okay. And so from when you were real estate like Jaipur, which the land parcel for, what is the business opportunity in that? You have the worth of INR 7 crores per land parcel. So out of that, so what will be the sale value of the redevelopment of what -- after the constructing of those projects?
Presently, we are planning to construct 1 in Cabot. Other one is in Jaipur. In Jaipur see and parcel valuing around INR 300 crores. But definitely, we'll be to catch around the INR 400 to INR 500 in decor and similarly, it's INR 100 crores from Kumba. So...
And the profit in these segments will be 25%, right?
25% to 30%, we can expect 25%.
[Operator Instructions] The next question is from the line of Pankaj Kumar from Kotak Securities.
Sir, this vision is the next 5-year vision of achieving INR 25,000 crores. So in that, what contribution you expected from the redevelopment versus P&C? Will it be largely from the redevelopment? Or is the normal P&C building projects that we are getting?
50% from development, out of 90%, I can say, 40%, 45% from redevelopment and another 45% regular P&C.
And in this redevelopment, which are the major opportunities that you see? One you said is the PSU land development, I believe. So what are the other avenues that you have? Is it...
Other redevelopment projects is under our ministry only, we're going to start 1 development project that is real. The other one is the ring road and reasons. These 2 realist retailment project will go to get at the earliest. So we have another also some other state government. We are trying for another state government that right now, I cannot say, but we have a lot of opportunities and a lot of scoping redevelopment.
Of course, there's a huge opportunity on the redevelopment side. But we have seen the approvals and other government involvement is also there in all day. So do you see these targets would be achievable or I mean looking at the -- we have seen the 7 GPRA project, there were delays in approvals and all. So -- plus we also have to monetize the land and to generate resources. So what are the challenges that you believe whether these old challenges continue or...
As you rightly said, the Save faced a lot of challenges like precutting preremoval, encroachment and generation of funds. Now all the generation front part already over. So we already sold around 10,000 inventory, 3,000 we will going to sell during this year. So there is no money issue. Secondly, encroachment issue also already resolved. So in 7 per day, we don't have any adults. That's why we have kept only 20% increase in the next year because next year, we are able to generate only 10% to 20% only. Our order book will be more, but approval and all it will take some time. Next year onwards after 1 or 2 years, our revenue can increase like anything. So initially, we are taking very comfortable 10% to 20% only.
So this PSU land development opportunities, what value you expect out of it in your order book next 5 years?
I told you now around only 10% to 20% next we are projecting. But next 5 years, it will be more than INR 20,000 crores, INR 25,000 crores. It is easily because we are already talking with some other PSUs, BS and MTNL. So right now, I don't want to disclose the names and all. So we have a good opportunity, and they have very good land parcels, and we are going to redevelop that.
And these are at which geographies?
Across India. Across India. Delhi listed parcel and Bopana Parcel Visaka Putnam -- so BHL having neanderthal in Wishakapatnan. Gopal, they are exceet, presently, they are not used in an encroachment and all issues are going on. So they wanted to nonteen.
And you also talked about the opportunities from other sectors in the previous calls, like metros and so any development and any comment on those?
We already secured a metro work for our -- we already secured. Kochi Metro, where we're going to get the Kochi Metro projects. Similarly, we are trying for other metro projects. So a lot of opportunities are in the metro sector also. And steel sector, we got recently some INR 300 crores, INR 400 crores over.
Okay. And lastly, on the international side, what is the total order book? And what are the pipeline?
Presently, we have INR 1,000. Certainly, we are doing around INR 1,500 crores to INR 4,000 crores worth of project. And we are already established now in Saudi Arabia, Didra. We are focusing those regions from that country, the neighboring countries. We already have an office in Dubai, our subsidiary fully owned subsidiary is having office. So we are focusing now on Saudi Arabia, Bahrain, Sharjah. So they've got a lot of big housing potential there. So -- and then we are also now targeting African countries, in concur. We are trying to get a hospital project there and some other talks are going on in other inventories. So we are expecting some good revenue, good new business orders in coming years.
The next question is from the line of Dane Rusal from Nomura.
Sir, my first question was related to the monetization. So do you think the government can involve private sector in case of PSUs land monetization or the redevelopment of aggressive in the near future?
Pardon me?
Do you think that government can involve the private sector in case of the land monetization or development programs in the near future?
Already, they are enrolled in Bombay, but they're not super full. One thing I can tell you, it is not successful. Now the government will go into it that are. That's what I heard from state government. So we're going to get some business in Bombay. So private people, they cannot grow the main government projects. Of course, they can do their own and government projects.
Okay. So sir, what are challenges we face actually compared to what are the positives for the NBC company like NBCC? And what the challenges as were the private place in such case?
Advantage is government because just I'll say one word. When PSU's fails, private people will come to take. Example, Air India. Air India sale, Tata took over. Whereas AMRP, private people sales and NBCC successfully doing that project. So the advantage is we put sale around 6,000 units is in the history of India, first time we sell around 6,000 units. No private agencies so far sell this amount of volume of housing project. So the reason is we are a government entity, PSU, the confidence on Mumbai is more. Much more because all the private builders already they have created some extent. In Delhi around 3.5 lakhs homewear still they are struggling to get their wons. So that is the advantage for NBCC.
Okay. Okay. Sir. And as you mentioned, like a revenue target of around INR 25,000 crores by FY '20. So what do you think the potential risk to this particular estimate in the medium term as well as the long term?
I think there is more risk because since we are doing on PMC basis even development also we are doing on PMC basis. So there is no much more risk. Of course, that many challenges we have to face best all. There is -- I think there is no risk in this.
Okay. Okay. Sir, and coming to the margin part, the margins have remained volatile historically for the company. So how do you plan to maintain like expand it on a consistent basis in the long term or in the medium term, your plans on that respect?
In long term, I think we were going to achieve more margin because our expenditure is fixed. However, it is only salaries, nothing else. Basically, or sales and other things, so that is breakeven revenue reached around INR 5,500 crores. The salary will be breakeven. Beyond that, whatever you will do, our margin is definitely going to increase. So that's why we are projecting 6% EBITDA next year. And similarly, I think by end of '27, '28, it may reach up to 8% to 9%.
Okay. Okay. Sir, and what will be the fixed cost annually approximately? Can you quantify that?
INR 300? Around INR 300 crores.
The next question is from the line of Shawn, who's an Individual Investor.
Sir, will you also be targeting the land banks of the Indian Armed Forces like maybe Airforce, Army, and they also have a huge bank?
Yes. Presently, we are discussing with them. It is initial stage only. So I am already discussing with defense, the army and upwards, that is land motion. Of course, for the India, Pakistan Butter fencing that is done by MBC. It has completed. So India Balarini and attest we are doing for BASF and ITB, CRPF, we are already doing their road as well as fencing work.
So sir, what's the revenue potential that you already you were doing? And what do you expect in future to make the process?
Presently, we have -- in India, Pakistan and we are completed, India Bangladeshi it is going on, INR 200 crores to INR 250 crores, I think per year were presently we are doing. It will be increasing SDA runners. Some PSUs are not performing in the burner. That's why we are getting the job from them. Already we have secured.
Okay, because of your execution.
Yes, yes.
Sir, like on my previous participant asked about the land bank, so how much sales can you do from that INR 700 crores of land bank? Like if you were just mainly then sell the units from that.
So at our land book, we will go to generate around INR 1,400 crores, INR 1,500 crores after completion, we can generate -- presently, we have around INR 700 crores land bank. It is ours only. Excluding tonic, that determine land parcel, it is huge but also we are planning to redevelopment. So excluding ritual Gianni, we have INR 710 crore land parcel.
And sir, any guidance on the contingent liabilities for this fiscal year? What would be the contingent liabilities this year?
Contingent liabilities are to the tune of INR 1,400 crores. And they are mainly consists of 3, 4 main contractors. One is the Ramah against whom the company has also filed a recovery out of INR 750 crores. And they are at 3, 4 or more contractors also. That's why it has increased. This is the reason, yes.
So do you expect this to go down from fiscal year '25 or it will be the same because of the delays?
So far the contingent liability is what I have seen with my experience of over 35 years, they have not yet materialized in the tune for which it appears in the books, and very meager amount is. Actually, is finalized against rather. NBCCs always get favorable judgment in its favor. And very rarely, we'll get any...
The rest climb also.
When this amount will increase in the next coming fiscal year or it will remain at this?
No, no, we are not expecting and rather the company is focusing on for discussing the legal disputes with the contractors, and we are trying to resolve. And some of the resolutions have also been made internally through discussions with the contractors. Though they are of the small amounts, but this approach has also been adopted by the company. So we are not expecting it to increase further in the future.
The next question is from the line of Basudeb from am.
So in the previous call, you had mentioned that our order book in P&C and redevelopment was nearly about 50-50 or 60-40. And earlier you mentioned that the PMC is 92% and real estate and all is 3%, 4%. So I mean get over here.
Total out of INR 55,000 crores if I say -- I can sell like this, I can put like this, total INR 55,000 crores, 90% value is PMC. The PMC includes redevelopment. If I divide PMC in 2 category, PMC and redevelopment, then it is 50-50 or 40-60 like that. So we are doing 90% to our PMC. We are operating 3 segments. Basically, we're operating 3 segments: PMC, EPC and Real Estate. Whereas in PMC, we are doing the development more projects. It is not a PMC development.
In this quarter, then what will be the and redevelopment?
Around 50%. Currently, I cannot say exactly what the figure, around 50% in development and 50% from PMC.
Okay. Okay. And sir, what is the realistic sales that you are expecting for next year '25?
INR 13,000, I told you. INR 13,000 revenue and real estate. You are asking about real estate or total?
No, only real estate sales.
Real state around INR 200 crores or INR 250 crores, INR 200 crores to INR 250 crores
Ladies and gentlemen, we would take that as a last question for today. I would now like to hand the conference over to the management for closing comments.
Okay. Thank you, once again, all of you. I think we have cleared your questions, answered very, I think, answered your questions. Thank you. We are expecting very good growth. And I think in this year, we're going to get -- within 1 month, we are going to get a good number of orders. And hopefully, at one side will be very good in it as well as you. Thank you.
On behalf of Nomura and NBCC India Limited. That concludes this conference. Thank you for joining us. You may now disconnect your lines.