NBCC (India) Ltd

CHAIRMAN'S COMMUNIQUE

DEAR SHAREHOLDERS,

It is my pleasure to welcome you all to the 64^th Annual General Meeting of NBCC (India) Limited. The Annual Report of your Company for the Financial Year 2023-24 along with the Directors' Report, Audited Annual Accounts, Auditor's Report and Comments of Comptroller & Auditors General of India (CAG) are available with you and with your permission, I consider them as read.

Let me share with you the journey undertaken by the Company during the Financial Year and the Company's future anticipations.

Economic and Industry overview

India's economy continues to demonstrate remarkable resilience and growth, driven by strong fundamentals and key sectors. The country's economic stability is a testament to its potential as a leading global economy, despite facing geopolitical challenges.

The post-Covid recovery has been solidified through effective fiscal and monetary policies, ensuring economic and financial stability. India's growth trajectory is built on a strong foundation, with a focus on sustainable development and key sectors driving progress.

Performance Review

For FY 2023-24, your Company achieved its highest-ever revenue from operations since inception, reaching approximately Rs.10,450 Crore, reflecting a significant year-on-year growth of 17.5%. NBCC strives towards contributing to the nation's infrastructure development. In this context the company has generated around 25 Million Man-days in FY 2023-24.

In FY 2023-24, NBCC secured a record new business totaling approximately Rs.23,500 crore, registering a growth of more than 250% over last FY at the consolidated level. An unprecedented milestone in redevelopment real estate was achieved with the record sale of commercial real estate inventory at the World Trade Centre, New Delhi, totaling approximately Rs.6,500 crore, which witnessing a rise of more than 209% compared to sales achieved last FY.

For FY 2023-24, your Company reported a total income of Rs.8,251.81 Cr on a standalone basis and Rs.10,666.68 Cr on a consolidated basis. The profit after tax stood at Rs.344.36 Cr standalone and Rs.414.38 Cr consolidated. Additionally, the Company has recommended a final dividend of 63 paise per paid-up equity share of Rs.1 each.

As of March 31, 2024, NBCC's order book stands at approximately Rs.52,242 crore. During FY 2023-24, at standalone level, your company secured new orders worth Rs.18,400 Crore.

NBCC is undertaking the development of unused and purchasable FAR for Amrapali projects in Greater Noida at Rs.10,000 crore (approx.), underscoring our commitment to lead housing and real estate sector for enhancing urban development. There is saying that give the control to private companies when PSU/Government entities fail, it must revive, but here we turned the table and a PSU has been entrusted with the takeover of stalled projects of a private builder i.e, Amrapali Group. NBCC remains committed to complete the projects and deliver happiness to homeowners.

Additionally, we have secured a development project from a south Indian state Govt. for the first time giving a major boost to our business expansion i.e, Kerala State Housing Board Land development, valued at Rs.2,000 crore.

Furthermore, the construction of a permanent campus for NIT Sikkim at Rs.560 crore and infrastructure development for the Rani Lakshmi Bai Central Agricultural University at Rs.332 crore highlight our dedication to advancing educational infrastructure.

Overseas Operations

NBCC has a longstanding history in overseas operations, having executed a wide range of projects across various countries.

Currently, the company operates in Mauritius, Maldives, Seychelles, Dubai, and Jeddah (KSA), and is exploring new opportunities in Fiji, Morocco, Guinea, the UAE, and other African countries.

Despite geopolitical challenges, NBCC has made significant progress on its project to construct 2,000 social housing units in Hulhumale, Maldives, valued at USD 130 million, completing 68% of the work as of August 2024.

The Indian Pavilion at the World Expo in Dubai, the Institute for Security & Law Enforcement Studies (ISLES) in Addu City, Maldives and social housing developments at Mare Tabac and Dagotiere in Mauritius highlight NBCC's commitment to executing significant international ventures.

Further, NBCC is actively engaged in several major international projects, including the development of a Chancery building and Residential units for HCI in Seychelles, a Police Academy in Mauritius, a Forensic Science Laboratory in Mauritius and the National Archives & National Library projects in Mauritius. These projects underscore NBCC's expertise and capability in executing complex infrastructural and construction projects on an international scale.

Other key development and achievements

NBCC has successfully completed about 19000 units (by March 2024) of Amrapali Projects in just three years (including 2-years under the influence of COVID-19 pandemic). The company is committed to deliver another 19000 units by March, 2025.NBCC along with ASPIRE team has achieved sale of over 6,300 units in Amrapali Projects with total sale value of more than Rs.3,650 Crore. Your Company's efforts have brought relief to thousands of homebuyers who were affected by the stuck projects, providing them with their dream homes.

NBCC executed the construction of the wooden replica of historic flag post at Rashtrapati Nilayam, Hyderabad. This is the tallest wooden flag post in the country and was completed in a short time frame of 2 months. The completed replica flag post was unveiled by Smt. Droupadi Murmu, Hon'ble President of India in a ceremony held at Rashtrapati Nilayam, Hyderabad on 21.12.2023. The office of Hon'ble President of India appreciated NBCC team for its exemplary work in restoring the flag post at Rashtrapati Nilayam, Hyderabad in record time.

The WTC has reached the brink of completion and handing over of inventory is in progress. WTC also saw the inauguration of its first office space wherein the state of the art office of CRCS was inaugurated by Shri Amit Shah, Hon'ble Union Minister for Home and Cooperation.

During FY 2023-24, NBCC continued its journey of excellence and innovation, earning several prestigious accolades and awards:

• Responsible Business Award by World CSR Day: On July 13, 2023, NBCC was honored with the Responsible Business Award in the "Real Estate Category" for its work on Amrapali Projects at a ceremony in Mumbai.

• Silver Award by Integrated Health and Wellbeing Council: NBCC received the Silver Award under the "COVID Relief Project (Mega)" category for its contributions to COVID vaccination efforts in Leh and Ladakh. The award was presented on July 14, 2023, in New Delhi.

• 14^th Exceed HR Awards 2023: On August 25, 2023, NBCC was recognized with the 14^th Exceed HR Award in the CSR & Training category for its outstanding CSR and training practices.

• Green Ribbon Champions by News 18: NBCC was awarded the Green Ribbon Champions under the "Excellence in Green Technology Adoption" category on September 28, 2023.

• Best Construction Infrastructure Public Sector Enterprise (PSE) by Markenomy Foundation: NBCC was conferred with the prestigious "Best Construction Infrastructure Public Sector Enterprise (PSE)" award at the 8^th Atal Shastra Markenomy Awards 2023. The award, recognizing NBCC as a pioneer in the field of construction.

These awards highlight NBCC's commitment to excellence, innovation, and its significant contributions to various sectors.

Sustainable Development

Being a socially responsible organization, the Company has consistently taken a leading role in various sustainability initiatives. Its unwavering dedication is evident through its commitment to uphold ecological and environmental standards in every aspect, including materials, processes, and projects. All new projects undertaken by NBCC are conceived in line with the Bureau of Energy Efficiency (BEE) and GRIHA norms.

At NBCC, we strive for excellence in research and innovation, focusing on sustainability in the construction environment. The Research and Development (R&D) Policy of NBCC aims to foster a holistic research culture among students & faculty of civil engineering at various reputed universities & colleges, to bring about a significant & positive climate impact, through its funding of R&D activities. NBCC is also investing in its in-house research activity to improve its own procedures, methods, specifications & standards, to align itself with globally emerging standards, of sustainability in construction. NBCC endeavors to focus innovative efforts towards enhancing sustainability in built environment.

NBCC collaborated with IIT Roorkee to establish a Joint R&D Centre to sponsor & provide grants in aid for research focused on developing more sustainable construction materials and enhancing service life of built-up assets.

Your Company has completed various research projects within the country having significant outcomes such as improving standard designs through faculty-assisted laboratory & in-situ research; Reduction of Consumption Water, Natural Sand, and Cement in Construction; Improving service life of existing built-up structures through innovative retrofitting, waterproofing, and multi-domain solutions.

As your Company builds for the future, it remains committed to responsible and sustainable practices. Your Company's ESG strategy is integral to its business, guiding to minimize our environmental footprint, promote social value, and uphold the highest standards of governance. NBCC prioritize eco-friendly construction methods, invest in local communities, and ensure transparency and accountability in its all operations.

By embedding ESG principles into the culture of the Company, NBCC aim to create long-term value for its stakeholders, contribute to a better world and leave a legacy in the built environment. Your company is striving piously adopting all measures for sustainable development as per best industry practices on Construction projects whether it is use of recycled water, sensor fixtures for water conservation, use C&D waste products, Aluminum form work, Precast RCC & Post stressed RCC slab as a new technology. Your company also intends to use advanced materials like Glass Fiber Reinforced Polymer (GFRP) reinforcement bars for sustainable construction on NBCC Projects.

Through collective efforts, NBCC is committed to advancing its ESG performance and fostering a more sustainable and responsible built environment.

Human Resource Development

During the financial year 2023-24, Human Resource Management team played a crucial role as the transition in top management positions unfolded.

In October 2023, the inaugural address of company's CMD, infused all employees with renewed hope, aspiration, and a sense of responsibility. The Human Resource teams, with unwavering efforts, prioritized tasks effectively managed time, contributing to the achievement of the company's common goals across all fronts.

NBCC achieved the coveted accreditation 'The Great Place to Work'. This recognition reflects the team's positive mindset towards the company.

In the interest of employees of NBCC, the company has come up with new promotion cycle which has benefitted the employees. Instead of the promotions, which were earlier due from 1^st October every year, NBCC extended the promotions on from 1^st of April. This positive step was taken to motivate the employees at large.

The Human Resource Management team provided ample opportunities for professional growth and development to meet the evolving needs of the organization. Recognizing the importance of a healthy workforce, the top management made several employee welfare related decisions, including providing free health insurance to the regular employees and their families. Additionally, as part of the grand event "Azadi ka Amrit Mahotsav", throughout the year NBCC frequently organized Medical Health Camps across all Construction Work Sites and Offices for employees and construction workers. These camps aimed to promote well-being and address health-related concerns.

Yoga sessions and mental health programs were organized on various occasions, emphasizing holistic wellness. Furthermore, the HR team ensured that employees had access to information and awareness about POSH (Prevention of Sexual Harassment) and human rights through comprehensive training programs.

Regular interactive and open discussion sessions with employees facilitated open communication, allowing management to understand issues and take necessary actions promptly. The success of Company was significantly impacted by strategic planning, resorting proactive measures, and innovative solutions put forth by the Human Recourses. The approach adopted by the Management, facilitated success in attracting, engaging, and retaining the talent.

Skill Development

NBCC understands that investing in its employees' skill and knowledge is essential for achieving organizational goals and contributing to notional development. Training and Skill initiatives undertaken by the Company during Financial Year 2023-24 to move the company's commitment in building a skilled workforce are as under:-

1. Skill India Initiative: NBCC actively participates in the Skill India Initiative, a flagship program by the Government of India aimed at enhancing the skills of the country's workforce. Under this initiative, NBCC has been providing training and upskilling opportunities to a significant number of workers, empowering them with valuable construction-related skills.

2. Leadership Development Program: NBCC understands the importance of cultivating leadership skills within the organization. The Company has implemented leadership development programs to nurture and groom future leaders. These programs focus on managerial and leadership competencies among high-potential employees.

3. Technical Training Programs: NBCC has been conducting technical training programs to enhance the technical capabilities of its workforce. These programs cover areas such as project management, construction techniques, quality control, and safety protocols, equipping employees with the necessary skills to deliver high-quality construction projects.

Some of the key training programs conducted by NBCC during the Financial Year are:

The Happiness Program focused on promoting well-being and positive psychology among staff. There were several initiatives specifically for women's empowerment, such as the Sensitization of Women's Health and Women in Leadership in PSUs and Women Leadership & Motivation.

Technical skills were addressed through sessions like Application of Electrical Engineering in Civil Engineering Projects, Welding Technology, and multiple programs on MEP (Mechanical, Electrical & Plumbing) tailored to different seniority levels: general sessions, sessions for PM and above, and for DPM and below. Safety training was a significant focus with numerous sessions on Health & Safety at sites, spanning locations like Sarojini Nagar, Bharat Vandana Park, and various Amrapali sites including Dream valley Phase 2, Leisure Valley Verona Heights etc., Netaji Nagar, WTC Nauroji Nagar, CBSE works in Dwarka, Karkardooma, WHO works, and ILBS works.

NBCC also conducts "Samvaad", an in-house brainstorming session with senior officers of the company in periodic intervals. The event includes deliberations on various topics such as strategic growth of the Company, its business development, initiatives on sustainable construction etc. Various critical issues are also discussed and solutions are arrived in such sessions. This year the session yielded many positive outcomes for the company.

Social Commitments

NBCC is committed to creating a positive social impact through various initiatives aimed at sustainable and inclusive development. Its social commitments are manifested through its Corporate Social Responsibility (CSR) programs, which encompass a broad spectrum of activities designed to improve the quality of life for disadvantaged communities and promote environmental sustainability.

Various CSR initiatives have been undertaken by the Company during the Financial Year 2023-24 to uplift the lives of marginalized and underprivileged communities. Remarkable CSR projects initiated by NBCC in different parts of India include the distribution of fortified Giftmilk to government school children in the aspirational districts of Ranchi, Jharkhand and Kadapa, Andhra Pradesh; construction of accommodation for Cow Sewaks at Kamdhenu Arogya Sansthan, Nuh (an aspirational district), Haryana; procurement of an ECHO machine and requisite training in echocardiography and treatment of children in the district hospital, Ferozpur, Punjab; upgrading health equipment in government healthcare facilities, Nuh, Haryana; procurement of an ambulance for hospitalization of local people, Purba Medinipur, West Bengal; sponsoring the distribution of blankets to the poor, Madhubani, Bihar; sponsoring initiatives to impact the lives of farmers in Giridih, Jharkhand by adopting affirmative steps; construction of a yoga centre at the premises of TenguniaArunodayaPallimangal Samity, Tengunia, Contai, Purba Medinipur, West Bengal; and sponsoring water RO systems for less privileged families of Sarakpatna weaving village, Dhenkanal (an Aspirational District), Odisha.

In the field of promoting education, NBCC has constructed one block with five rooms at Pransla camps, Shri Vedic Mission Trust (SVMT) Rajkot, Gujarat; sponsored the procurement of a tempo traveller and equipment for handicapped children at Dr. Hedgewar Hospital Campus, Aurangabad, Maharashtra; and renovated government school buildings in Munger, Bihar.

Towards contributing to conserving ecological balance and environmental sustainability, NBCC has collaborated with the Delhi Flood Control Department for the construction of a drain for storm water in Delhi and sponsored the procurement of rooftop solar panels for tribal families of Narmada (an Aspirational District), Gujarat.

Through these multifaceted roles, NBCC significantly contributes to social development, aiming to create a balanced and inclusive growth trajectory for India. The corporation's commitment to social responsibility ensures that development projects are not only economically viable but also socially beneficial and environmentally sustainable.

Opportunities

• Government initiatives for infrastructure growth: Opportunities arise from Government investments in roads, highways, bridges, airports, and public transportation, driving demand for construction services.

• Redevelopment and monetization of old government properties: NBCC is focused to leverage opportunities in redeveloping and modernizing government assets, unlocking their value and generating revenue.

• Renovation and upgradation of heritage properties: NBCC as Specialized construction Company has also focus on preserving and restoring historic buildings, requiring expertise in traditional craftsmanship and materials.

• Overseas opportunities: Overseas opportunities for projects funded by the Government of India, including those supported by the Ministry of External Affairs, Exim Bank's Buyers Credit scheme, Lines of Credit (LOC), and participation in international competitive bids

• Management of stressed assets: NBCC can assist developers and financial institutions in reviving stalled or distressed projects, leveraging expertise to revive and complete them.

• Implementation of flagship government schemes: Opportunities exist in executing government initiatives like affordable housing, smart cities, and urban renewal projects, aligning with national development goals.

• Diversification into new sectors such as aviation, healthcare (Ayushman Bharat Mission under the National Health Mission), defense, procurement of high-end machinery and equipment (e.g., printing machines), Smart City mission projects, and industrial estate development

Focus on Execution:

NBCC has numerous projects in the pipeline, and the current focus is on converting these opportunities into tangible outcomes. The company is dedicated to emphasizing execution, aiming to bring these projects to fruition and enhance their contribution to turnover. By prioritizing the successful implementation of these projects, NBCC seeks to translate its substantial portfolio into significant revenue growth and operational success.

Outlook of Company

With renewed thrust of the government on infrastructure and real estate sectors, the Company is poised for a phase of growth in the near and mid-term, with its combination of experience and expertise, capacity and capabilities, reach and presence-complimenting a diverse business model; NBCC's redevelopment model. NBCC is in touch with various state Govt. and Centre Govt. for re-development/land monetization of which major projects to be likely secure in near future are Vacant/underutilized/unutilized land parcels of PSU, Govt. departments.

The Company is on track to reap rich benefits both in India and overseas. Capitalizing on new market opportunities by strengthening its core competencies, pursuing high-value projects in domestic and overseas markets and diversifying into new areas of operation, NBCC is poised to achieve enviable heights in the near future.

Diversification of the company into new sectors on domestic platform such as Aviation sector, Health sector under Ayushman Bharat Mission- Construction of District and Central Drug ware house, Emergency Covid centres under National Health Mission (NHM), Defence works, procurement of high-end machines/equipment's (printing machines), Smart city mission projects, irrigation projects like renovation/ repair of power channel & development of canal networks etc.

Based on company's expertise and competence, the Hon'ble Supreme Court in 2019 assigned the job of completion of Amrapali Stalled Projects to NBCC. The Company has already made significant and worthwhile contribution in executing stalled projects of realtors. For restoration of faith of Home Buyers, NBCC is continuously delivering flats under guidance of Ld. Court Receiver & Committee members. Completing these stalled projects will go a long-way in delivering homes to buyers as well as ensure crucial support for the real estate sector, besides establishing the Company as a leading player in the real estate space.

Governance & Transparency

Good corporate governance creates transparent rules and controls, provides guidance to leadership, and aligns the interests of shareholders, directors, management, and employees. The Company is committed to adopting best corporate practices based on transparency, conscience, and accountability. The Comptroller & Auditor General of India (CAG) has given "NIL" comments on the financial statements (standalone and consolidated) of the Company for the Financial Year 2023-24.

Looking Ahead

As we gaze into the horizon, we recognize the Indian construction sector's pivotal role as the nation's economic powerhouse and second-largest GDP contributor. Infrastructure development remains the linchpin, driving growth across industries and propelling India's ascent.

Looking ahead, our strategic priorities are clear: fortify our business fundamentals, embrace innovative practices, and strive for operational excellence. By embracing a forward-thinking approach, we are poised to transform into a more agile, resilient, and future-ready organization, primed for sustained growth, success, and a lasting impact on India's development narrative.

Acknowledgement

I would like to take this opportunity to express my heartfelt appreciation and gratitude to the Government of India, specifically the Ministry of Housing and Urban Affairs, Ministry of Finance, Department of Public Enterprises, DIPAM, SEBI, and Ministry of Corporate Affairs (MCA), as well as all other Central and State Government Agencies, C&AG of India, our esteemed clients, valued customers, consultants, construction partners, statutory authorities, auditors, bankers, dedicated employees & their family members, and stakeholders for their support and cooperation, which has been instrumental in taking the company forward on its journey of progress and success.