NCC : Transcript of the conference call-Nov 15,2022

Ref. No.: NCCL/ Regulation 30/2022

Date : November 15, 2022

National Stock Exchange of India Ltd	BSE Limited
Exchange Plaza, C-1, Block G	Phiroze Jeejeebhoy Towers
Bandra - Kurla Complex	Dalal Street,
Bandra (E)	Fort
MUMBAI - 400 051.	M U M B A I - 400 001.
Symbol: NCC	Code: 500294

Dear Sir(s),

Sub: Submission of Transcript of the conference call under Regulation 30&46 of the SEBI (LODR) Regulations, 2015

Please find enclosed herewith the transcript of the earnings conference call that took place virtually on November 9, 2022 with analysts discussing the performance & financial results of Q2 of the F.Y. 2022-23. The transcript is also available on the Company's website at https://ncclimited.com/analysts.html.

The Transcript includes list of management attendees and the Q&A's, any assents/dissents and open points.

Please note that no unpublished price sensitive information was shared/discussed in the earnings call.

Kindly take the above information on record.

Thanking you,

Yours faithfully

For NCC LIMITED.

M V Srinivasa Murthy

Company Secretary & EVP (Legal)

Encl : As above

NCC Limited

(Formerly Nagarjuna Construction company Limited) CIL: L72200TG1990PLC011146

NCC House, Madhapur, Hyderabad 500 081 T [phone] F [phone] ncclimited.com

NCC Limited

Q2 FY23 Earnings Conference Call

Event Date / Time	: 09/11/2022, 12:00
Event Duration	Hrs. : 1 hr. 8 mins 38
	secs.

CORPORATE PARTICIPANTS:

Mr. R.S. Raju

Director (Projects)

Mr. Krishna Rao

Executive Vice President, Finance and Accounts

Mr. P V Vijay Kumar

Vice President

Mr. Neerad Sharma

Head Strategy & Investor Relations

Mr. K. Durga Prasad

General Manager (Finance)

Transcript - NCC Limited Q2 FY23 Earnings Conference Call

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Q&A PARTICIPANTS:

1.	Shravan Shah	: Dolat Capital
2.	Nikhil Abhyankar	: Dam Capital
3.	Ranodeep Sen	: Mas Capital
4.	Ash	: Elara Capital
5.	Deepak Poddar	: Sapphire Capital
6.	Saket Kapoor	: Kapoor & Co
7.	Chandramouli	: Individual Investor
8.	Prashant Hazariwala	: Individual Investor

Transcript - NCC Limited Q2 FY23 Earnings Conference Call

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Moderator

Good afternoon, ladies and gentlemen. I am Pelsia, moderator of NCC Q2 FY23 Earnings Conference Call hosted by DAM Capital Advisors Limited. As a reminder all participants lines will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing * and then 0 on your touch tone telephone. Please note this conference is recorded. I would now like to hand over the floor to Mr. Mohit Kumar from DAM Capital. Thank you and over to you sir.

Mohit Kumar

Thank you, Pelsia. On behalf of DAM Capital, we welcome you all to the NCC Q2 FY23 Earnings Call. From the Management side, we have with us Shri R.S. Raju, Director (Projects). Shri Krishna Rao, Executive Vice President (Finance and Accounts), Shri P V Vijay Kumar, Vice President (Finance), Shri Neerad Sharma Head Strategy & Investor Relations and Shri K. Durga Prasad, General Manager (Finance). Without much delay, I'll hand over the call to the management for the opening remarks, which will be followed by a Q&A session over to you, sirs.

Vijay Kumar

Good afternoon, everyone. This is Vijay Kumar, Head Finance and Vice President. I welcome all of you for the H1 FY23 Earning Investors Call. I thank you all for taking time to attend this. Before we start, I'll read out every disclaimer and then we shall go into the subject. The statements are made here or in the presentations uploaded by the company are to our best of knowledge to and any forward-looking statements are subject to certain factors beyond control of the Company Officials and Management and hence the audience are advised to use their discretion in their own analysis accordingly. Now, we shall go into taking the performance of the company for this Q2 into account. I'll briefly start with opening remarks followed by Q&A.

I have my colleague R.S Raju Director, CFO Mr. Krishna Rao, GM (Finance) Durga Prasad and Mr. Neerad, Head Strategy and Investor Relations are present in this call, who take your questions. Considering time limitation, I have a request, all audience please allow others to get a chance and limit yourself to one or two questions briefly, so that all can be accommodated. Now, we'll start now, so internationally, almost all economists are showing certain pain points in a major or minor way. We are in a peculiar situation arising after the COVID coupled with the global tensions causing supply chain disruptions. The theories in economies are like we are seeing them now after several years or decades of gap in their own way they are structured.

During his peculiar, troubled times, India has shown its resilience in bouncing back. If you observed main drivers of Indian economy, it is topped by infrastructure construction spending,

Transcript - NCC Limited Q2 FY23 Earnings Conference Call

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followed by consumer spending, which is since picking up. Thanks to the cascading effect of government spending and improved CapEx program across the states. The graph CapEx formation in effect 2022 has shown up nearly 16% while government at center embarked on various CapEx programs like Pradhan Mantri Awas Yojana, with an estimated budget of 48,000 crores, Jal Jeevan mission with an estimated budget of 60,000 crores etc. Meanwhile, private consumption expenditure as an indicator of demand in the economy, that contributes the most to the GDP, grew at 7.9%.

It is clearly now, a play of CapEx coupled with private consumption. The good part of India is the economies need to be matured and still offers good revenues. As you see India surpassed England as fifth largest economy in the world. This is the moment the companies, which have good business mix like NCC, which is into building, water, electricity, roads, mining, etc., are well positioned to capture all the opportunities in different segments. NCC with the size of 40,000 Crores of order books in all these segments remain as one of them spearheading companies in construction segment. Global inflation forecast is expected to be in the range of 8.8% in FY22 and as not shown so much affect during FY23 as well.

Primarily, arisen as a spillover effect of COVID relief measures, undertaken by various nations, the money supply has been substantially induced into the economies to support the civic life. The balance sheets of Federal Reserve and European Central Bank have expanded by 110% and 88% respectively, between January 2020 and December 2021. While RBI balance sheet blew up nearly 36% respectively. This helped us to stay behind the inflation band. However, we are also importing the effect of inflation into our economy arising due to supply chain disruptions, fall in rupee due to hike in interest rate in the west, causing dollar flight and impacting current account deficit.

Towards this end, RBI tried to address the problem by increasing repo rates, cumulatively by 190 days between May 2022 to September 2022. As a consequence, the rate of interest across the bank have arisen. I mentioned here that NCC the average rate of interest from April 1, 2022 to equals 8.6% gone up 8.7% as on September 2022, and most of our working capital is remained in the form of working capital demand loan. So, while average BG and LC commissions rates remain at the same level so far. So, we are yet to see the full impact of interest rates. While this being so the global hiking commodity prices seem going down, though the levels were not restored compared to previous year due to fears of recession in large economies like China, US, England, etc.

The experienced management and well-built contractual structures ensured to manage the cost not to slip beyond limited levels even the whole industry and economy are showing visible slippages in cost. Coming to the last part of my briefing, we remain bullish in our economy considering the infrastructure spend driven growth, the Indian economy will grow at an average real GDP growth of 6% during 2022-2030. On the other hand, China and US with the average

Transcript - NCC Limited Q2 FY23 Earnings Conference Call

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