#1Investor Presentation Q2FY 24 Date: November 09, 2023 NCC#2Forward Looking Statement NCC This presentation contains certain forward looking statements concerning NCC's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage operations, government policies and actions with respect to investments, fiscal deficits, regulations, geopolitical risks and Covid 19 pandemic, interest and other fiscal costs generally prevailing in the economy etc. Past performance of the company may not be indicative of future performance. The company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company. 2#3NCC Building the Nation ESIC Hospital, Gulbarga NCC Airport Agartala, Tripura AIIMS, Guwahati, Assam Nagpur Metro Rail Agra-Lucknow Expressway, UP KM 144 10/04/2017 Chandni Chowk Flyover, Pune 3#4NCC Building the Nation SVAB, ISRO, Sriharikota, Andhra Pradesh Seabird Project, Karwar, Karnataka Water Supply Project, Angul, Odisha NCC Nagpur Metro Rail (Double Decker) Housing Project, Bhubaneshwar Rubber Dam on Falgu River, Gaya, Bihar#5NCC Building the Nation AIIMS, Bilaspur, Himachal Pradesh Airport Agartala, Tripura LELLE Makara Dhokra, WCL (Minning) NCC MANGA ARPORT AGARTALA 444 Pune Metro Rail Nagpur-Mumbai Expressway SICPAC Auditorium, Shillong, Meghalaya 5#6NCCL- Business Constitutes S.No Particulars 1 Construction i) NCC Limited........... ii) Pachhwara Coal Mining Private Limited 2 Real Estate i) NCC Urban Infrastructure Limited 3 Others i) BOT Roads ....... Total Q2FY24 Revenue Mix % 90.79% 7.15% 1.91% 0.15% 100.00% NCC 6#7Key highlights - 2nd Quarter FY24 NCC Particulars ✓ Reported highest ever Turnover in 2nd Quarter ✓ Significant order inflow in 2nd quarter ✓ Recorded lowest debt in 2nd quarter of the last 10 years ✓ Robust Order Book stands at highest ever Rs.4283 crs Rs. 12289 crs Rs. 1470 crs Rs.61796 crs 7#8Order Booking in the 2nd Quarter FY24 NCC Particulars ✓ Phenomenal growth in Order Booking in Q2 on Year on Year by ✓ Significant increase in average size of Q2 new orders ✓ Order book grown from Rs 54110 Crs to 54% Rs 1229 crs Rs.61796 crs 14000 12000 10000 8000 6000 4456 4000 2661 2000 Order Inflow - Quarter wise 13283 5495 8154 12289 0 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 8#9Major Orders Received in Q2 FY24 Rs. in Crores S.No. Name of the Client 1 State Water & Sanitation Mission (NGRWSD), Govt. of Uttanpradesh 2 3 4 Govt. of India, Central Public Works Department Bangalore Eelectricity Supply Company Limited Work Name Survey, Design, Drawings, DPR and Construciton of multy group of villages water supply scheme Agra Package-I, (Surface water) including commissioning and O&M for 10 years Design and Construction of Centre comprising of earthquake resistant 280 bedded multispecialty Hospital for AIIMS Rishikesh. Uttarkhand in EPC Mode. Amount 1635.05 283.92 Upgradation of Distribution Automation System (DAS) in Bengaluru City. 318.61 North Bihar Power Distribution Company Ltd Design of Advance Metering Infrastructure (AMI) 2324.25 system with supply, Installation and commissioning under DBFOOT modal. 5 Maharashtra State Electricity Distribution Company Limited Supply of Plant and Installation including Civil Contract for "Development of Distribution Infrastructure at Aurangabad. 173.19 6 State Water & Sanitation Mission (NGRSD), Survey, Design, drawings, DPR, and Construction of Govt. of Uttarpradesh 819.20 Firozabad Pkg-1, Multi Group of Villages Water Supply Schemes (Surface Water) including commissioning and O&M for 10 years. 7 Brihanmumbai Muncipal Corporation ,Mumbai (JKumar NCC Pvt. Limited) Design Construction and operation of twin tunnel from city Goregaon to Khindipada (Amarnagar) mulund. (M/s NCC -J.Kumar (JV) Order value Rs 6301.08 Crores, NCC Share 51%. O&M for 10 years 3213.55 8 Ltd. Maharashtra State Electricity Distribution Co. Design of Advance Metering Infrastructure (AMI) 5755.58 system with supply, Installation and commissioning under DBFOOT modal. Awarded to SPVS 9 Scope Diff. and O&M Total NCC -2234.35 12289.00 9#10Composition of Order Inflow & Order Execution in Q2FY24 Order Inflow Rs 12,289 crs Order Execution: Rs 4604 crs ■ Electrical, 48% ■ Others, -2% Buildings, 6% ☐ Transportation ■ Others, -4% Mining, 9% ■Irrigation, 2% ,27% Electrical, 16% Water & Railways, 20% Water & Railways, 16% Transportation, 12% NCC Buildings, 51% 10#11NCC Order Book Composition division-wise Order Book as on 31.03.2023 Rs 50244 crs ■ Others, 0% Order as on 30.09.2023 Rs 61796 crs ■ Mining, 10% ■Irrigation, 1% ■ Electrical, 14% Water & Railways, 16% Transportatio n, 12% ■ Buildings, 46% ■Mining, 7 Others, 0% ■Irrigation, 1% Electrical, 22% Water & Railways, 16% ■ Transportation , ,14% Buildings, 41% 11#12Operating Performance - Standalone for the 2nd Quarter ended 30-09-2023 Rs. Crores Q2 Particulars FY24 Change FY23 YoY Growth Revenue 4312 3037 1275 42% Gross Profit 503 483 20 4% EBITDA 279 289 -10 -4% PAT 69 122 -53 -43% ✓ Revenue increased by 42%, primarily by Buildings division & driven Electrical division NCC 12#13Standalone - Operating Performance after adjusting the claims accounted in Q2FY24 NCC for the 2nd Quarter ended 30-09-2023 Rs. Crores Q2 Particulars Reported Excl. Claims Change YoY Growth FY24 FY24 FY23 Revenue 4312 4511 3037 1475 49% ✓ When we we exclude the two claims from operating results the margins are looks like - Gross Profit Margin is 15.67% as against 16.09% (YoY) Gross Profit 503 703 483 219 45% EBITDA 279 478 289 PAT 69 218 122 97 189 66% 79% EBIDTA margin is 10.66% as against 9.61% (YoY) PAT margin is 4.83% as against 4.01% (YoY) * On claims separate note disclosed in reported results 13#14Operating Performance - Standalone (quarter wise) Revenue 4283 4500 4016 3838 4000 3373 3500 2959 3004 3000 2500 2000 1500 1000 500 0 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Rs. Crores NCC EBITDA 450 424 Net Profit 381 400 349 350 281 289 279 300 250 200 150 100 660 200 180 160 120 140 122 120 100 80 178 162 150 69 60 50 40 0 20 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 0 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 14#15Operating Performance - Consolidated for the 2nd Quarter ended 30-09-2023 Rs. Crores Q2 Change Particulars Growth FY24 FY23 YoY Revenue 4746 3405 1341 39% Gross Profit 539 518 21 4% EBITDA 304 310 -6 -2% PAT (Equity shareholders) 77 131 -54 -41% NCC 15#16Group Companies Performance Subsidiary Cos & Jointly Controlled Entities for the 2nd quarter ended 30-09-2023: Operating Performance S.No Name of the Company Rs. in Crores 2nd quarter ended 30-09-2023 30-09-2022 PAT Turnover PAT Turnover A Sub. Cos. /JCES/Associate Cos 1 Pachhwara Coal Mining (P) Ltd. 337.6 9.9 279.9 8.2 2 NCC Urban Infrastructure Limited 94.5 9.6 81.9 12.5 3 OB Infrastructure Limited 15.2 4.1 13.8 0.0 4 NCC Infrastructure Holdings Limited 0.1 (0.2) 0.1 (0.0) 5 NCC Internationl LLC, Oman 0.7 (0.1) 3.3 (0.5) B Consolidation Adj./Non-Controlling Interests Total (A+B) (13.4) (15.0) (10.4) (10.9) 434.7 8.4 368.5 9.3 ✓ Significant increase in the Turnover of Mining MDO Project. NCC 16#17Working Capital - Standalone Working Capital - Movement Crores Particulars FY20 FY21 FY22 FY23 H1FY24 Turnover 8219 7256 9930 13351 8121 % of Growth -32.0% -11.7% 36.9% 34.5% 36.2% Working Capital 3713 3995 3604 % of Increase 7.5% 7.6% -9.8% 3874 7.5% 14.2% 4426 - WC as % of Turnover 45% 55% 36% 29% 27% WC DAYS (*) 159 194 140 102 94 *Excl. Cash & MM deposits ✓ Significant reduction in working capital as a % of revenue Year -on-Year ✓ Improved collections from the clients in last 2 quarters. ✓ Recorded lowest working capital days in H1 of FY24 NCC 17#18Cash Flows - Standalone Cash Flow Quarter on Quarter Crores S.No Particulars A Net Cash Flows used in Operating Activities Q2FY24 Q2FY23 161 53 B Net Cash Flows used in Investing Activities (80) (53) Free Cash Flows 80 0 C Net Cash Flows from Financing Activities (135) 50 D Net increase/(Decrease) in cash and cash equival (55) 50 ✓ Significant improvement in operating cash inflows as compared to same quarter of the previous year. ✓ Outflows in Investing Activities declined YoY. ✓ Quantum of usage of borrowings have come down significantly. NCC 18#19Cash Flows - Consolidated Cash Flow Quarter on Quarter S.No Particulars Crores Q2FY24 Q2FY23 A Net Cash Flows used in Operating Activities 180 107 B Net Cash Flows used in Investing Activities (88) (63) Free Cash Flows 92 44 C Net Cash Flows from Financing Activities (146) 15 D Net increase/(Decrease) in cash and cash equival (54) 59 ✓ Significant improvement in operating cash inflows as compared to same quarter of the previous year. ✓ Outflows in Investing Activities declined YoY. ✓ Quantum of usage of borrowings have come down significantly. NCC 19#20Debt status - Standalone Debt for the Quarter ended Sept 30, 2023 Crores S.No Particulars 30.09.23 30.09.22 A Gross Debt 1,470 1,985 B Less: Unencumbered Cash and cash Equivalents 215 131 C Net Debt 1,255 1,854 ✓ 2nd Quarter comparing to YoY reflects good inflows from the client. ✓ A phenomenal Decline in the debt by 26% on Year on Year ✓ The net debt as low as Rs 1,255 crs NCC 20 20#21Significant Matters in Q2 FY24 ✓ Highest ever Order book - Rs 61796 Crs ✓ Highest ever Q2 Revenue Rs 4283 Crs Q2FY24 revenue has crossed Q4 of previous year - indicating strong growth momentum Strong collection resulting into low Net Working Capital Successfully got prestigious contracts in 2 new high growth areas Smart Metering projects (2 project in Maharashtra and one in Bihar) • Tunnelling project using TBM for a road project in JV with partner NCC ✓ Arbitration Tribunal has given an award as Rs.198 Crs payable to NCCL With this award, a major uncertainty facing the company is firmly behind us - although company intends to pursue all legal options available to it. . Company has given effect to this award on its financials. ✓ The Company has received Settlement Agreement of EPC contract of Rs.152 Crs which partially offset the impact of above Arbitration Award. Cash inflow of Rs.152 crs on account of this award is expected in couple of months. Sustainable Business Model, Strong operating margin - driven by top line growth. 21#22Significant Key Initiatives Particulars NCC ✓ Focusing to enter into the new verticals to clinch major orders as a part of Strategic Plan to maintain 20% growth year-on-year ✓ Strengthening in-house abilities in Planning, Engineering, Designing process, Digitalization, Quality, Safety, Governance etc. ✓ Keeping debt at low level to maintain adequate head room for growth plans ✓ Maintaining an optimum distribution of works across all major states to minimize risk of collection and execution 22 22#23Outlook NCC ✓ The Company achieved a Revenue CAGR of 17% in the last 3 years and Company planning to continue sustainable growth. ✓ The present Order Book containing more escalation projects which insulate against any escalation in the input prices. ✓ The favorable mix of interest bearing and non-interest bearing (60:40) mobilization advance orders reduce the interest cost going forward. ✓ The Order Book contains more of Central Govt. funding and increased portion of private orders lower the working capital days. ✓ The stable economy, strong Balance Sheet of the Banks, Capex plan of the Govt., give. further momentum to continue its growth journey. ✓ The biggest order in the Order Book "UP Jal Jeevan Water Project" Rs.16,500 crs has picked-up good progress, contributed more revenue in Q2 of FY24 and continue its more contribution in the remaining quarters of the year. 23#24Outlook ✓ Strong bid pipeline and client payments, improves the execution outlook. ✓ Easing commodity price volatility to aid margins. ✓ Entry into new sectors of infrastructure to drive broad based growth in future. NCC 24#25Thank you