nbcc india ltd share price Management discussions

Global Economy

In the Financial Year 2021-22, the world experiences inspiring as well as concerning mes. A er the disaster of Covid-19 pandemic, the world has been going through other global issues like the economic crisis, the breakout of Russia-Ukraine war which mul plied the growing instability in the global financial and infrastructure markets. The growth opportuni es have been surrounded by various risks and uncertain es, and the ensuing mes would test the character of the world in managing mul ple challenges at the same me.

The economic situa on across the world was showing steady recovery but return & con nuity of Covid-19 pandemic in some part and commencement of Russia-Ukraine war have impacted this recovery. April edi on of the World Economic Outlook highlighted that the ongoing conflict in Ukraine has "severely set back" global economic recovery. As per IMF, global growth is projected to slow from an es mated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January. World Bank in its Global Economic Prospects report published in June 2022, has lowered global growth forecast for calendar year 2022 to 2.9 per cent from 4.1 per cent. World Bank reported that Global median headline CPI in a on rose to 7.8 percent (y/y) in April 2022, its highest level since 2008.

Due to Russia-Ukraine war, the increasing uncertain es and supply chain pressures have resulted in a world-wide in a onary environment. The World Economy saw serious Supply disrup ons, rising food, energy and crude prices have pushed the in a on to record levels and in certain cases to decades high levels. Further, repercussions from the war situa on and sanc ons, and the unpredictable path of the pandemic, with increased danger of stag a on, i.e., high in a on and weak growth. Targeted reforms and relief measures included focus on Infrastructure, healthcare, financial management for governments worldwide.

The high in a onary environment has forced the Central Banks to increase interest rates. On 4 May 2022, the US Fed hiked the base rates by 50 bps, which was one of the biggest hikes in the last two decades. According to a World Bank report, the pace of global economic recovery is expected to slow in the near term as recurring pandemic waves disrupt domes c ac vity, supply bo lenecks con nue and policy support is withdrawn.

Indian Economy

The Indian economy shown a encouraging recovery during the Financial Year 2021-22. Indian economy was one of the key contributor of global economic recovery with a healthy growth rate. The infrastructure and Health Sector have become priority for the government of India. Improving Health and transport infrastructure facility are cri cal need to the public at large. India is on the way to become the worlds third largest construc on market by 2022.

However, due to adverse economic condi ons and rising in a ons, growth in the Indian economy has been adversely impacted. As per IMF reports, the GDP forecast for India has been slashed to 8.2% for FY 2022-23 from 9% earlier. The reasons was a ributed to higher oil and commodity prices. The Reserve Bank of India (RBI) has also raised the benchmark repo rates in line with the global trends. In India, rising in a onary pressures led to an unscheduled policy rate hike in May & June 2022. According to the provisional es mates released by the National Sta s cal O ce (NSO) on May 31, 2022, Indias real gross domes c product (GDP) growth during 2021-22 is es mated at 8.7 percent as compared to a contrac on of 6.6 percent in 2020-21.

However, the underlying fundamentals for Indian Economy appear to be strong and are expected to grow through with these di cult mes. A encouraging and con nuous efforts for improving infrastructure and increased investment in manufacturing Sector would accelerate the recovery and growth in the overall economy. The Indian economy showed posi ve indica ons of high growth on the back of numerous ini a ves and reform measures undertaken by the Central Government and state governments. In addi on to favourable macro-factors, increasing public and private investment spending ini a ves undertaken by the Government to boost growth in capital expenditure is be instrumental in driving the countrys long-term growth agenda.

Industry Overview (Structure and Developments)

The Government has taken significant measures by increasing the capital expenditure alloca on for infrastructure projects through budgetary reforms. Besides, the Government is taking pro-ac ve ini a ves to unlock stuck and stalled investments in the core and infrastructure projects, revive investments from the private sector by reforming policy environment, improve ease of doing business and accelerate project related approvals. The Central Government con nued its focus on boos ng availability of a ordable homes under the Pradhan Mantri Awas Yojana (PMAY). The establishment of the Special Window for A ordable and Mid-Income Housing (SWAMIH) fund proved beneficial in enabling comple on of stuck projects by providing last mile funding for such projects. The predominant theme informing this years budget is its unprecedented focus on the crea on and augmenta on of physical and digital infrastructure, not only by the Union Government, but also in terms of support and incen ves for the states to ramp up the pace of infrastructure crea on.

The Union Budget 2022-23, being presented as a blueprint to lay the founda on and steer the economy for the next 25 years. The Budget document has iden ed four priori es

(i) Development of infrastructure through PM Ga Shak ,

(ii) Produc vity Enhancement through crea ng conducive environment for business, skill development,

(iii) More inclusive development through the development of agriculture, employment

(iv) Financing Investment through Public sector with the ac ve par cipa on of private sector (Government of India, 2022). Since last Union Budget 2021-2022, the government has relied on infrastructure development to expedite the growth of the pandemic ravaged economy.

As high-quality public infrastructure plays a crucial role in suppor ng economic growth, genera ng jobs, and improving ci zens well- being. the Pradhan Mantri Ga Shak is an ini a ve to boost the physical infrastructure of the economy through seven engines, namely

(a) Roads,

(b) Railways,

(c) Airports/Avia on,

(d) Ports,

(e) Mass Transport,

(f) Waterways, and

(g) Logis cs Infrastructure.

Housing for all: A ordable housing for all does not only ensure the quality of living of people in a country; the construc on and use of decent housing affect economic development through its impact on employment, savings, investment, and labour produc vity. To meet the challenge of accommoda ng the increasing popula on with proper housing, the government has launched the Housing for All by 2022 scheme in 2015 to provide assistance for the construc on of houses. The Union Budget 2022-2023 has allocated an outlay of Rs. 48,000 crore under the Pradhan Mantri Awas Yojana to target the construc on of 80 lakh homes to facilitate access to a ordable housing.


NBCC, a "Navratna" CPSE, of the Government of India is under the administra ve control of Ministry of Housing and Urban A airs. Having walked through 62 years of business, its core activities comprise of three ver cals namely:

(i) Project Management Consultancy (PMC),

(ii) Engineering Procurement and Construc on (EPC), and

(iii) Real Estate.

Project Management Consultancy (PMC)

NBCC executes its PMC projects across in wide gamut of construc on eld at a fixed agency charge, which inter-alia includes civil construc on projects such as hospitals, educa onal ins tutes, residen al complexes, commercial complexes, border fencing, etc., infrastructure projects such as solid waste management schemes, water storage solu ons, roads, drainage systems, water supply systems, etc.

The other major component in PMC segment is the Companys unique re-development model of business, on self revenue genera on basis which established NBCC, as a leader in the construc on sector, wherein government provides land for re-development, on which funds are generated by commercializing part of the land, and the receipts are u lized for the re-development of the project.

Engineering Procurement and Construc on (EPC)

NBCCs EPC services include project conceptualiza on, feasibility studies, detailed project reports, engineering, tender speci ca ons and various packages covering basic and detailed engineering, review of projects, procurement, construc on drawings, commissioning, tes ng and handing over of project to clients in ready-to-use i.e. in func onal condi on.

NBCCs has been opera ng in Infrastructure segment, execu ng a diverse range of projects like chimneys, cooling towers, coal handling plants, roads, TV towers, airports, runways etc.

Real Estate

It was in year 1988, when NBCC entered the Real Estate segment. NBCC, a leader in the construc on sector, has been playing a vital role in execu on of residen al and commercial projects as well as many ins tu onal projects wherein it either acquires land parcel or enters into JV or Consor um with other leading players.

The development and management of real estate sector has emerged as a cri cal and crucial part of the larger Indian construc on space. However, the real estate sector has been going through a challenging phase in the last few years. Many real estate developers have failed and are undergoing liquida on process.

Recently, Honble Supreme Court has appointed NBCC as implemen ng agency for the stalled projects of Amrapali Group. NBCC, a Government Navratna Company and a leader in the construc on segment, is looked upon as a vital and trustable agency by home buyers in execu ng stalled projects of real estate developers.

Overseas Opera s

NBCC ventured into Overseas Opera ons in the year 1977, execu ng projects of diverse nature in countries such as Libya, Iraq, Yemen, Nepal, Maldives, Mauri us, Turkey, Botswana. Presently, the Company has its presence in Mauri us, Maldives, Seychelles & Dubai and Future plan is Burundi , Malawi, Sierra leone, Eswa ni (erstwhile Swaziland) implemen ng various projects and earning consistent revenue. To further its prospects overseas, the company has also entered into MoUs with JSV Belzarubezhstroy for Joint Par cipa on in the upcoming Infrastructure and Energy Development Projects in India & Republic of Belarus.

NBCC has secured biggest ever order in overseas market, financed by Exim Bank of India under Buyers credit scheme. In Buyers credit Programme of the Export-Import Bank of India (Exim Bank) under Government of India (GOI)s National Export Insurance Account (NEIA), Sovereign governments and their nominated government owned en es are eligible for financing their import of eligible goods and services from India on deferred payment terms. The scheme ensures compe ve interest against host countrys high cost of borrowing.

Some of the notable interna onal projects successfully completed by the company include:

Construc on of Indo Maldives Friendship Faculty of Hospitality and Tourism Studies at Male Republic of Maldives.

Renova on work of Indira Gandhi Memorial Hospital, at Male Republic of Maldives.

200 Bedded Indira Gandhi Memorial Hospital, Male, Republic of Maldives

Meer Housing Project (3600 Dwelling Units), Turkey

Indira Gandhi Centre for Indian Culture, Phoenix, Mauri us

New Supreme Court Building at Port Louis, Mauri us

Social Housing Projects at Mare Tabac & Dago ere, Mauri us

Ins tute For Security & Law Enforcement Studies (ISLES) at Addu, Maldives

Some of the major interna onal projects under execu on by NBCC at present are:

Construc on of 2000 Social Housing Units in Hulhumale Maldives.

Construc on of Police Academy at Mauri us.

Construc on of Forensic Science Laboratory at Mauri us.

Construc on of National Archives & National Library at Mauri us.

World Expo 2020

The India Pavilion at World Expo 2020 at Dubai was designed by NBCC (India) Limited through its wholly owned subsidiary in Dubai i.e. NBCC DWC LLC keeping in mind the typical trapezoidal-triangular shape of the land parcel of the India Pavilion, its accessibility and considering enhanced visibility of the India Pavilion from the common pedestrian movement corridor and in line with the Clients inten on of retaining the Main Pavilion building as a centre for India Exposi on, even a er the comple on of the World Expo 2020.

The India Pavilion at Dubai World Expo, 2020 has been constructed with the aim to showcase Indias growing prowess and capabili es and provide opportuni es for the growth of business and tourism, etc. India has par cipa ng in the World Expo 2020 at Dubai with the theme of "OPPURTUNITY" and showcased its ini a ves such as Space technology, yoga, Health and Pharmaceu cals including Ayurveda, Arts, Culture, Tourism, Landscape, Government ini a ve like Make in India, Invest India, Digital India, Solar Energy sector, IT sector, Defence, MSME, Tex les, Infrastructure, Food processing and other investment opportuni es. NBCC Designed and Developed first of its kind an unique dynamic facade in the North and East eleva on. The dynamic facade has been developed as a mosaic of stone- finished 623 Nos MS panels (3mm thick) capability of 360 degree independent movement along the ver cal axis (structural pipe).


NBCC is a debt free and consistently pro t-making Company. It is led by a professionally experienced senior management team supported with a large pool of highly mo vated and skilled employees with diverse background ranging from finance, law, projects, engineering, architecture, HR and IT over-arching exper se-areas from housing, to urban infrastructure to master plan to city development plans.

NBCC always endeavors to execute projects with world-class technology and delivers these within given me-frame. The Company has consistently improved its execu on capabili es with the adoption of latest technology.

It has been a leader in the construc on sector. Its unique business model for development of government colonies and its diverse exposure across businesses, segments and geographies de-risks cyclical downturns, resul ng in a steady growth trajectory. NBCC takes pride in crea ng new genera on workspaces that match global standards. The Company has the dis nc on of developing officeprojects at par with the best in the world. It has become a partner of choice for many government and nongovernment organisa ons.

The construc on industry has been witness to a strong growth wave powered by large spends on housing, road, water supply, urban transforma on etc. With the total investment in infrastructure es mated to increase significantly, the future outlook for NBCC is both posi ve and op mis c.


Strengthened by robust opera onal performance and sound fundamentals, NBCC has posted impressive corporate results for the financial year 2021-22. Key financial highlights are as under:

Par lars

FY 2021-22

FY 2020-21

Consolidated Standalone Consolidated Standalone
Total Income 7884.56 5734.20 7133.70 5120.08
Total Expenses 7496.90 5397.67 6841.23 4875.63
Share of profit /(Loss) in joint venture (net of Tax) 0.03 - (0.20) -
PBT (a er excep onal items) 314.74 236.73 292.27 244.45
PAT 237.93 182.86 240.10 201.74

The Board of Directors of the Company have recommended a nal dividend of Rs 0.50/- per equity share of Rs 1/- each (i.e. @ 50%) for the FY 2021-22 subject to the approval of the shareholders in the ensuing annual general meeting of the Company.

Segment-wise Performance:

Segment-wise performance of the Company is as under:

Par culars

Consolidated Year Ended on

Standalone Year Ended on

31.03.2022 31.03.2021 31.03.2022 31.03.2021
Audited Audited Audited Audited
1. Segment Revenue
(a) PMC 6959.82 6408.42 4976.62 4540.57
(b) Real Estate 116.43 94.64 116.43 94.64
(c) EPC 498.64 358.22 371.57 248.03
Total 7574.89 6861.28 5464.63 4883.24
Less: Inter Segment Revenue - - - -
Net sales/Income From Opera ons 7574.89 6861.28 5464.63 4883.24
2. Segment Results (Pro t before tax)
(a) PMC 300.10 256.21 218.62 198.70
(b) Real Estate (70.23) (3.41) (70.19) (3.13)
(c) EPC (3.61) 18.73 (12.61) 4.93
(d) Unallocated 94.15 27.36 106.57 50.55
Less: Finance Cost 5.68 6.62 5.65 6.60
Total Pro t Before Tax 314.74 292.27 236.73 244.45


At the end of the financial year ended 31st March, 2022, NBCC has following subsidiaries and joint venture companies:

Name of the Company Category Investment (%)
NBCC Services Limited Wholly Owned Subsidiary 100
NBCC Interna onal Limited Wholly Owned Subsidiary 100
NBCC Environment Engineering Limited Wholly Owned Subsidiary 100
HSCC (India) Limited Wholly Owned Subsidiary 100
NBCC Engineering and Consultancy Ltd Wholly Owned Subsidiary 100
Hindustan Steelworks Construc on Limited Subsidiary 51
NBCC Gulf LLC Foreign subsidiary 70
NBCC DWC-LLC Foreign Wholly Owned Subsidiary 100
Real Estate Development & Construc on Joint Venture 50
Corpora on of Rajasthan Ltd.

Besides, there are non-incorporated JVs also i.e. NBCC-AB JV (50%) and NBCC-MHG JV (50%)


NBCC Gulf LLC was voluntary liquidated on June 20, 2021.

NBCC Engineering and Consultancy Ltd has completed its voluntary winding up and dissolu on order for the same from Honble NCLT is awaited.

Merger of NBCC (India) Limited with NBCC Interna onal Limited & NBCC Environment Engineering Limited has been withdrawn and it has been decided to close NBCC Interna onal Limited and NBCC Environment Engineering Limited through Voluntary winding-up

The Company has won arbitra on award in respect of disputes with JV partner M/s R.K. Millen & Co. (India) Private Limited. The award is par ally realised and the amount of investment in JV has been adjusted against it in the year 2019-20. The dissolu on of the defunct partnership shall be pursued a er receiving award amount in full.

Related Party Disclosure:

Sr. No. In the accounts of Disclosures of amounts at the year end and the maximum amount of loans/ advances/ Investments outstanding during the year
1 Holding Company Loans and advances in the nature of loans to subsidiaries by name and amount: NIL
Loans and advances in the nature of loans to associates by name and amount: NIL
Loans and advances in the nature of loans to rms/companies in which directors are interested by name and amount: NIL
2 Subsidiary Same disclosures as applicable to the parent company in the accounts of subsidiary company
3 Holding Company Investments by the loanee in the shares of parent company and subsidiary company, when the company has made a loan or advance in the nature of loan: NA

For the purpose of above disclosures directors interest shall have the same meaning as given in sec on 184 of The Companies Act, 2013. There is no transac on in the Company with any person or en ty belonging to the promoter/promoter group which holds 10% or more shareholding in the Company.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ra os, along-with detailed explana ons are as follows:

Financial Ra os on tandalone basis
Par culars 2021-22 2020-21 Details of Ra o Par culars
Trade Receivable Turnover (in mes) 3.37 3.25 Revenue from Opera ons (value of services)/ Average Trade Receivables This ra o measures the efficiency of the Company in managing and collec ng the debts and receivables. It signi es the level how frequently the Company realizes its dues.
Inventory Turnover Ra o (in mes) 3.12 2.61 Cost of goods sold / Average Inventory This ra o shows how well the Company manages its inventory levels and how frequently the Company replenishes its inventory
Interest Coverage Ra o NA NA Earning for debt service/ debt service The Company has no debt.
Current Ra o (in mes) 1.01 0.98 Current Assets / Current Liabili es This ra o shows the Companys ability to pay short-term obliga ons or those due within one year
Debt Equity Ra o NA NA Total debt / Shareholders equity The Company has no debt.
Opera ng Pro t Margin (Before Excep onal 2.69 1.45% Pro t Before Excep onal Item & Tax (Excluding Other Income)/ Total Income from This ra o shows how much profit the Company makes on sales/services, a er paying directly a ributable prime cost.
Item) (%) Opera on This in increase more than 25% due to increase in Turnover of the company.
Net Pro t Ra o (%) 3.35% 4.13% Net profit / Revenue from opera ons (value of services) Net profit margin signi es how much net income/pro t is generated from its opera ng revenues.
Return on Net Worth (%) 10.30% 11.93% Net Pro t / Net worth (Total Equity) ROI signi es the returns to the owners on their average investment in the Company.


Pushing boundaries and reaching new fron ers has always integral to the larger purpose at NBCC. NBCC always endeavors to work towards innova on, introduc on and improvement of services and processes. The Research and Development (R&D) Policy of NBCC is to provide a framework for inculca ng and fostering a research culture within NBCC, improve research performance and achieve high quality technology outputs. The policy promotes R&D activities as complimentary to construc on activities aimed to improve the quality of work and sustainability. It contributes towards crea on of wealth and well-being of the Company and further for the construc on sector as a whole. It supports NBCCs aspira on of emerging and evolving into a world-class construc on company.

MoU with IIT Roorkee

NBCC has signed a Memorandum of Understanding on November 7, 2014, with Indian Ins tute of Technology Roorkee, for Joint Research & Development Centre at Greater Noida for "Sustainable Civil Infrastructure" wherein mutually agreed research projects are being undertaken by the faculty of IIT Roorkee and workshops, conferences and training programmes are being conducted at the Joint R&D Centre. Further, MoU has been extended for the next 5 years i.e. upto November 6, 2024. The following sponsored research projects have been completed by various IIT with significant outcomes :

Economising of Prefab Structures by IIT Madras

Reduction of Water Consump on in Construc on by IIT Delhi.

Risk Management Iden ca on, evalua on and strategic management of risks in Infrastructure projects by IIT Delhi.

Mechanical proper es of Nano-Silica based HPC-IIT Roorkee.

Development of Agriculture Waste based accelerator for enhanced concrete hardening- IIT Roorkee.

Outreach ac vity- Modular Construc on alterna ve of Lecture Hall complex at IIT Roorkee- IIT Roorkee.

Recycled Aggregate Concrete, an inves ga on of proper es and Structural applica ons- IIT Roorkee.

Iden ca on and Degrada on of Emerging Contaminants in India by Advanced Oxida on and Advanced Reduction Process.

Compara ve study of conven onal building founda ons with founda ons on treated/ reinforced ground.

Pragma c Approach towards using demolished concrete wastes & reclaimed asphalt pavement in Pavement Quality Concrete (PQC) Mix.

Framework to manage construc on and governance of Smart City Buildings in India.

Lesson from Green Residen al Development- case of East Kidwai Nagar and New Mo Bagh by IIT Roorkee.

Developing an integrated framework of Green Construc on prac ces and implementa on roadmap for NBCC - IIT Roorkee.

Patent has been registered on the basis of outcome of research project "Development of Agriculture Waste based Accelerator for Enhanced Concrete Hardening".

The following sponsored research projects are under progress at IITs/ Premiere Ins tutes/Research organiza on:

Development of Self-healing concrete using bacteria, by Thapar University, Pa ala.

Development of accelerated carbona on curing procedure as an e ec ve Carbon dioxide sequestra on and water conserva on technique, By Thapar University Pa ala

Seismic Safety measures for RC frame Buildings with different types of In ll panels by IIT Roorkee.

Characteriza on of Manufactured Sand and its e ec ve u liza on in Construc on by CSIR-CBRI Roorkee. Patent has also been led for a running Research Project "Development of Self Healing Concrete Using Bacteria". In addi on to above "Laboratory for Sustainable materials and Durable Construc on has been set up at IIT Roorkee-NBCC R&D centre, Greater Noida for inves ga ng durability parameters of building materials which can be used for designing long life structures and extending the life of exis ng structures, developing alterna ve low energy sustainable materials and construc on techniques etc and for Durability Tes ngs for Durability Construc on and Design of Reinforced Concrete and Masonry structures.


All new projects undertaken by NBCC are conceived/conceptualized in line with the Bureau of Energy E ciency (BEE) and GRIHA norms. Some of the Green buildings executed by NBCC include:

Vanijya Bhawan, Delhi - GRIHA 3-Star ra ng

SPG Dwarka LEED Pla num ra ng.

Garvi Gujarat Sadan - GRIHA 3-star ra ng.

New Madhya Pradesh Bhawan - GRIHA 3-Star ra ng

Central Informa on Commission Headquarters - GRIHA 4-star ra ng.

Income Tax o ce, Lucknow - GRIHA 3-star ra ng.

NIA Headquarters, Delhi - GRIHA 3-star ra ng.

MSTC Corporate O ce, Kolkata - GRIHA 3-star ra ng.

Indias first and largest Green Home Campus at New Mo Bagh- IGBC-LEED Silver ra ng.

Na onal Ins tute for Solar Energy (NISE), Gurugram - GRIHA 5 star ra ng.

Indian Ins tute of Corporate A airs, Manesar- LEED Gold ra ng.

Civil Services Officers Ins tute (CSOI) New Delhi - GRIHA 3-Star ra ng.

Coal India Building Headquarters, Kolkata (WB) - GRIHA 4-Star ra ng.

Central Bureau of Inves ga on (CBI) H.Q. LEED Silver ra ng.

Group Head Quarter for CISF at Ahmedabad - GRIHA 3-Star ra ng.

Besides the above, NBCC had set up a C&D waste recycling plant at the East Kidwai Nagar redevelopment project, where 2 million bricks were manufactured and have been in the project itself.


NBCC is ac vely engaged in the development of Smart Ci es. NBCC will benefit from its versa le infrastructure por olio and its exper se. NBCC has also been appointed as Land Management Agency (LMA) by the Government of India for disposing of land / immovable assets of sick PSUs.

NBCC has taken an important ini a ve in this direc on by collabora ng with IIT, Roorkee in se ng up of R&D Centre with focus on Sustainable Civil Infrastructure The centre is taking up research activities in many construc on areas and aims to return benefits of research to the construc on industry as well as the society at large.

The Honble Supreme Court vide its order, appointed NBCC (India) Limited ("NBCC") as Project Management Consultant to complete stalled projects of the Amrapali Group.


NBCCs unique business model as well as its redevelopment projects, proven execu on with respect to quality-adherence and me-bound delivery as well as its innova on-led leadership create substan al differen a on and the Company is quite con dent to hold its forte.

The poten al sanc ons under various projects of the Central Government such as Pradhan Mantri Awas Yojna (PMAY - urban and rural), Smart Ci es, AMRUT, HRIDAY and such other schemes may create enormous opportuni es for NBCC. The huge infrastructure gaps in the country will increase the demand for construc on sector. Further, rapid popula on growth would lead to increased pace for urbaniza on .

However, the actual realiza on of these poten al opportuni es would depend on the level of threats and strategies followed to counter these especially in the exis ng COVID-19 pandemic resul ng in unforeseen economic changes across the country and world at large.


NBCC, established in 1960 as a Government of India Enterprise, has come a long way in serving the na on and fueling its growth engine. The coveted Navratna status conferred by the Government of India is recogni on of its con nuous efforts and unprecedented success story. Companys present array of opera ons encompass three main segments, i.e.

Project Management Consultancy (PMC)

Engineering, Procurement and Construc on (EPC)

Real Estate Development

NBCC understands that risk and uncertainty is an integral part of any business even in construc on and Real Estate Business. The Company has a system-based approach to business risk management. NBCC management has conducted extensive internal workshops to put in place a pro-ac ve risk management policy covering every aspect of business from internal opera ons, market dynamics, regulatory changes and macro-economic shocks.

It has formulated a Risk Management Policy to de ne a framework for iden ca on, evalua on and mi ga on of risk in the decision making process that is aligned to the pursuit of its stated strategic goals and objec ves. Govt demands be er performance from all the government companies. Consequently, state and central government enterprise are diversifying into construc on or real estate management and even project management consultancy in different niche areas of construc on such as in steel structures, hospitals, highways, etc. This has increased compe on for NBCC in PMC and Real estate ver cals, exer ng pressure on pricing of real estate inventory and also on PMC fee margins.

The risk management process of the Company includes systema c applica on of management policies, procedures and prac ces for clearly and correctly iden fying, analyzing, evalua ng, trea ng, monitoring, managing and taking steps to mi gate orminimize risks. These encompass Technical, Economic, Commercial, Organiza onal, Poli cal risks (TECOP). Another concern NBCC has to contend with the increasing level of compe on from private sectors companies and other PSUs who have entered its niche areas. Another concern area is the long gesta on period for actual eld applica on of new technologies. This is partly due to reluctance in adoption of new technologies and products by the clients viz., Ministries, PSUs, Government departments, etc., who cons tute a majority of NBCCs clients. While the Government has come up with several announcements to reform the sector and boost investor sen ments, key challenges remain to be addressed to sustain the growth trajectory as follows:

Factors such as delays in land acquisi on and environmental clearances, capacity constraints, and dependency on human labor;

Particularly in the real estate and construc on sector - access to finance, changes in regula ons, foreign direct investments, approval processes, environment clearances as well as legal hassles and proceedings affect the execu on project and lead to significant cost overrun;

Speci cally in the EPC business - delay in projects execu on, stalling of projects due to non-payment by developers, steep cost escala on in input costs affect the execu on of projects, resul ng in major cost overrun etc

Increasing backlog of infrastructure projects, moun ng losses due to delays and cost overruns could slow momentum NBCC con nues its efforts for fy its business opera ons and func ons to withstand risks and deliver a strong value- propor on comprising of best-in-class services to its customers at a sustainable cost and in a responsible manner. Further, in this COVID-19 pandemic me, when there had been country wide lockdown, the Company has taken various digital routes to explore and fulfilling opportuni es both at home and overseas. Various digitaliza on ini a ves have been undertaken to aid project monitoring and harness the power of digital technology. We today have more robust systems of risk detec on and mi ga on for our engineering, construc on and finance opera ons.

PMC & EPC Projects

The risks associated with PMC & EPC projects include execu on risk which may arise due to delay in release of funds from clients resul ng in delay of payment to contractors and hence, delaying the project.One of the risk factors is long drawn and mul farious contractor disputes due to old/legacy prac ces carried forward from previous genera ons.

Over last 2 years, the corpora on has made over numerous amendments to its contractual and internal control documents to avoid disputes from arising. Greater opera onal autonomy at different stages of planning, execu on and administra on of contracts has been provided in the amended manuals to reduce instances of disputes and to se le them amicably within a short period of me.

Besides, intense compe on of non-sec onal players in these sectors also impacts the profit margin.

In its endeavour to a ain sustainable growth, the Company consistently and constantly scans its external and internal business environment to assess its business sustainability and map future growth plans accordingly. To manage the threats both within and outside the company the Project Risk Management (PRM) and Enterprise Risk Management (ERM) framework has been developed.

Real Estate Projects

Recent legisla ons such as Real Estate (Regula on & Development) Act, 2016, Consumer Protec on Act 2019 and Insolvency and Bankruptcy Code 2016 have ushered in a new era of corporate transparency in their dealings with their customers, vendors, suppliers, and financial associates.

The real estate sector in India has been passing through a challenging phase in the last few years. However, RERA enhances transparency and con dence in the sector. This, in turn, is expected to benefit the segment par cularly in er II and III ci es by driving demand for both residen al and commercial proper es.

The real estate projects face a key market risk of demand-supply imbalance which can trigger a sharp surge in new development or a stagna on in demand. Further risks accrue from ghtening liquidity and ghtening tax regimes under GST & Income Tax and strict enforcement of laws rela ng to financial crimes has also subdued demand for real estate inventory, thereby a ec ng both PMC and Real estate ver cals of NBCC.

In order to mi gate these risks, NBCC has a board level and below board level committee which periodically reviews the risks associated with the Company and recommends mi ga on ac on to be undertaken.


NBCC has in place adequate internal financial controls with reference to financial repor ng in compliance with the provisions of Sec on 134(5) (e) of the Companies Act, 2013 and such internal financial controls over financial controls were opera ng e ec vely. Internal Financial Controls over financial repor ng are audited through external auditors on an annual basis.

The controls have been designed to provide assurance with respect of maintenance of proper accoun ng records, ensuring the orderly and efficient conduct of its business including adherence to the Companys policies, safeguarding of its assets, preven on and detec on of frauds and errors and ensuring reliability of financial and opera onal informa on. The internal control systems (including Internal Financial Controls over Financial Reporting) are reviewed on an ongoing basis and discussed at Audit Commi ee meetings. Necessary changes are carried out by the management to align with the changing business requirements. In addi on to the above, the Company has a well-de ned delega on of financial powers to its various o cers through its Sub-Delega on of Power book. The book is regularly updated as per needs of the Company as well as to bring further delega on. The Company has in-house Internal Audit and Technical Audit Departments commensurate with its size of opera ons. The internal audit programme, scope of audit and audit plan is approved from the Audit Commi ee. Internal audit is conducted through external audit rms and reports are deliberated with the management as well as the Audit Commi ee. The Statutory Auditors and Audit Commi ee of the Board regularly reviews significant audit findings covering opera onal, financial and other areas and provides guidance on internal controls.


The whirlwind that is the Covid-19 pandemic has changed life as we know it and it has impacted human beings like they had not been impacted in almost a century. Any organiza on is as good as its employees and the employees are as good as their health, in order to do well, the organiza ons must do good. This unique scenario has led to the HRM Division of NBCC focussing on employee health & well-being like no year before this in 2021-22. The HRM Division took a mul faceted approach to a ack the problem from all ends, to make both proac ve & reac ve interven ons to preserve employees health and well being. It is rightly said that Rome was not built in a day and similarly organiza onal culture is also not cul vated in a day. Cul va ng organiza onal culture and ins lling a feeling of trust amongst employees demands commitment and standing up when things are going downhill. The pandemic demanded similar commitment from the management this year, a short summary of the way management not just responded but succeeded in improving employees trust in the organiza on is highlighted below. To combat the pandemic, Covid Response Teams (CRTs) were cons tuted both centrally and regionally to have dedicated command centers for speedy resolu on and smooth execu on of all things related to the pandemic. The CRTs ensured appropriate Covid protocol, availability of hospital beds & oxygen concentrators and ful lment of other needs of employees and their dependants across the country thereby proving to be a great asset for all employees in their mes of crisis. This has helped in saving lives of employees & their dependents by helping in providing key resources in mes of distress & scarcity. Side by side, site in-charges were advised to visit sites on a daily basis to understand and resolve problems arising in worker camps. Additionally, several social media groups were created with senior leadership for speedy and smooth informa on sharing and execu on. NBCC also partnered with Airports Authority of India to reserve ten beds of L1 Covid facility for its employees & their dependents at the me of extreme scarcity in the na on regarding the same.

The Company not only ensured the wellness of its own employees but also acted as a good corporate ci zen by helping the community in the me of need. Along with making several dona ons, the Company also donated 46 Deep Freezers to the di cult terrain of Ladakh under its CSR ini a ves. In the state of complete lockdown, HRM Division invariably executed several key activities like PMS process, DPC interviews, medical tendering, several training activities etc. In a me bound manner by physically coming to officedespite all odds and di cul es. Additionally, the treatment clause for pandemic was inserted in the mediclaim policy for the help of employees. A happy and healthy employee is an asset to the organisa on. As a part of Na on building exercise, Company successfully vaccinated (both doses) its in-house and subsidiary companys (HSCL and HSCC) employees & dependents on 07.08.2021. The vaccina on drive was held at NBCC Bhawan, New Delhi for full day wherein more than 380 employees and dependents are vaccinated. Additionally, the first dose of COVISHIED was administered on 15.05.2021 and second dose was administered on 07.08.2021. In order to increase the coverage, similar camps were also organized in Praga Vihar and Mumbai for construc on workers on 05.06.2021. In addi on to the Companys Health Insurance policy, several Hospitals / Diagnos Centres were empanelled with the Company for providing value added treatment and diagnos c services to Company employees at CGHS / discounted rates. The empanelment of diagnos c centers like SRL diagnos cs, MAX Labs, Mahajan Imaging etc. proves frui ul to all employees in the mes of the pandemic. In-house doctor consulta ons have been revamped by engaging an experienced doctor for consulta ons. The doctors visits are scheduled everyday and are free of cost. In addi on to the resident doctor on premises, the facility of consulta ons by specialised doctors has also been introduced at Company premises wherein specialists like cardiologists, gastroenterologist, ophthalmologists etc. from reputed ins tu ons visit regularly for checkups of employees free of cost. Dr. Bhushan Bhole, Gastroenterologist, Dr. K K Talwar, HOD Cardiology at PSRI and Dr. Nirmal Gha , ex- Asst. Professor at AIIMS conduct fortnightly consulta ons on officepremises. Considering the fact that the elderly are most suscep ble to the virus, the Company has increased the coverage of the re red employees by introducing the top up facility in addi on to an increased Corporate Floater of Rs. 70 lacs. The re red employees can now substan ally increase their sum insured amount and this can help them in mi ga ng the financial liability in case of a serious or prolonged illness. Finally, as a wellness and awareness measure, the Company conducted Yoga Sessions at TSDC Ghitorni for the well being of the employees. Several other health camps were also organized to at different company loca ons to conduct health check-ups of employees. To spread awareness about the virus, ways to combat it and other important health issues, several sessions were organized with Dr. Randeep Guleria, the director of AIIMS, a session of Basic Life Support in case of medical emergency, full body orthopaedic check-up etc..

Increasing employee engagement through policy

Taking the opportunity of celebra ng Azadi ka Amrit Mahotsav (AKAM) with the na on, HRM Division innova vely integrated AKAM with its employee engagement activities and therea er conducted several compe ons like Debate, Essay wri ng, Pain ng etc.. In this series, the Company also collaborated with Ministry of Labour & Employment, GOI to conduct a day-long seminar on labour welfare and awareness. The NBCC Travelling Allowance policy which governs the rates and condi ons of employees going on tours (domes c & interna onal), transfers, conveyance for duty etc. was ra onalized to bring the rates up to date. The policy was en rely redra ed for a smooth flow and ease of understanding for all employees. Staff Welfare rates were ra onalized by bringing the rates up to date and the process for claiming welfare is being developed in form of an online module for the opera onal ease of claiming the reimbursement. Deputa on Policy was formulated in order to allow employees to go on deputa on outside and for deputa onists to come in the Company in order to improve liasoning with other public sector bodies and for cross skilling of our employees along with borrowing skilled manpower from outside. Family Financial Assistance Scheme was introduced in order to provide a financial safety net for the families of employees who died in harness by giving their families financial assistance equivalent to three months pay of the employee post his / her death. With these feats, NBCC strengthened its trust culture index and bonding of employees with the Company. This was explicit in the result of GPTW survey wherein we have significantly improved our score from last year by 5 points in the overall surveyed parameter indexes in comparison to last years score. The overall Trust Index score secured is 84 which is our highest ever score in the Trust Index and Culture Audit. NBCC has been recognised for the third year in a row as one of the Great Places to Work on the basis of its High Trust and High Performance Culture Index. The Company has also been recognized among one of the best in the "Construc on & Infrastructure Sector.

The number of regular employees as on March 31, 2022 was 1367 and during the financial year 2021-22, total 53 employees were appointed.

Human Resource Trainings

Learning and development is key towards agility. It ensures that an employee should remain a valuable asset all the me. NBCC training and development understands the change in business need of the company and thereby ensures the availability of right talent all the me.

In spite of severe global pandemic, NBCC ensured that its resources con nue to update their skills. It has efficiently leveraged its knowledge and skill building ini a ves through e-learning to sharpen the saw. Undisturbed by the unprecedented impact of lockdown due to pandemic, NBCC has achieved a major landmark by produc vely implemen ng a massive employee engagement program. Signi cantly, in addi on to focusing on the health and wellbeing of its employees, NBCC has e ec vely used this lockdown as an opportunity to sharpen the knowledge, skill and crea vity of its resources.

The Learning & Development (L&D) team of the company has created several learning opportuni es through various e-learning courses, webinars, and pieces of training on technical, func onal, managerial and behavioral domains. The team also shared over 250 YouTube highly relevant links with the employees on technical and behavioral topics which facilitated the learning opportuni es. NBCC has extensively used its in-house skill, exper se and domain experts in developing e-modules that are available on its ERP. The video recorded training sessions were also uploaded in the website of NBCC which could be accessed by any employee serving from any part of the globe. The company has also leveraged its vast IT infrastructure to support remote learning by arranging video based learning for extensive coverage. In the recent past we have conducted several behavioral, managerial and technical training programs in our training center and also through video conferencing.

Some of the programs are as under:

1. Project Management and Concrete Technology

2. Applica on of Electrical Engineering in Civil Engineering Project

3. Cer cate course on Innova ve Construc on Technologies

4. Internal Audit

5. Work Manual and GCC

6. Preven ve Vigilance

7. Preven on of sexual harassment

8. Emo onal Intelligence

9. Right to Informa on.

10. Interna onal and National Standardiza on for Electrical Engineers


The par culars of environment protec on and conserva on are detailed in the Business Responsibility and Sustainability Report and Technological conserva on and foreign exchange conserva on are detailed in the Boards Report.


A detailed overview of the Companys CSR programmes and spends are detailed in the Directors Report.


The financial statements of the Company have been prepared in accordance with the Companies (Indian Accoun ng Standards) Rules 2015 issued by Ministry of Corporate A airs (MCA). The Company has uniformly applied the Accoun ng Policies during the Financial Year 2021-22.


Statements made in the Management Discussion and Analysis Report describing the Companys objec ve, projec ons, es mates, expecta ons may be forward looking statements within the meaning of applicable laws and regula ons, based on beliefs of the management of the Company. Such statements reflect the Companys current views with respect to the future events and are subject to risks and uncertain es. Many factors could cause the actual result to be materially different from those projected in this report, including among others, changes in the general economic and business condi ons a ec ng the segment in which the Company operates, changes in business strategy, changes in interest rates, in a on, de a on, foreign exchange rates, compe on in the industry, changes in Governmental regula ons, tax laws, statutes and other incidental factors. The Company does not undertake any obliga on to publicly update any forward looking statements, whether as a result of new informa on, future events or otherwise.