Good Data
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Good Data
This is with reference to the article on the Cement sector in the issue dated 22nd April, 2012 (Industry Primer: Cement Sector, DSIJ Vol. 27, Issue No. 9). I must really appreciate the coverage done on the cement sector and the information provided about the same. The article gave an insight into the sector and the various parameters that affect the cost and the margins of the cement companies. Retail investors who are not too savvy with research reports can also get some insight about the sector with the help of the article.
The research is good, but if you could also provide the future outlook of the sector, it would be great. I also request you to cover the metal sector and steel, in particular.
Keep up with your good work. We really appreciate the same.
- Gaurav Jogani
Clarifications
This is with reference to the article on NBCC published in Dalal Street Investment Journal Issue No. 8 (dated March 26-April 8, 2012) as also to the one that was uploaded on your website on 29th February, 2012. We have reviewed the captioned articles and note that in both of them certain facts and matters have either been incorrectly mentioned or are extraneous to the offer document.
We request you to kindly take note of the following corrections:
(i) Article titled ‘NBCC – Building Gains’ published in Dalal Street Investment Journal for the period March 26, 2012-April 8, 2012 (“Article 1”)
| Sr. No. | Incorrect Fact Mentioned In Article 1
(Excerpts from Article 1) | National Buildings Construction Corp's
Response |
|---|
| 1. | ...the financial performance numbers for ‘9MFY12’ | The financial performance numbers for ‘9MFY12’ actually relate to ‘6MFY12’. |
| 2. | Under all three verticals, the company has been undertaking construction work for government owned companies as well as ministries. | We wish to clarify that this statement is incorrect, as it is valid only for two business verticals of NBCC, viz. PMC and Civil Infrastructure for power sector. Under the Real Estate Development business vertical, NBCC has not undertaken construction for government/ministries, instead these are the company's own projects where space is sold to government/their employees or to the public at large. |
| 3. | Having already completed 43 projects, the company has 130 ongoing projects and an additional 59 projects in the pipeline that are slated to be completed over the forthcoming 2-3 years. | We wish to clarify that this statement is inaccurate. The projects-related data is not as of the date of the news article but rather a much older date (as of September 30, 2011), so the reference to the same should have been given. |
| 4. | These are well spread across the North-Eastern belt of India. | We wish to clarify that this statement is incorrect. The real estate land reserves are spread across various parts of India. |
| 5. | ….and has maintained a healthy dividend payout ratio of 20 per cent. | We wish to clarify that this statement is incorrect, as it seems to suggest that NBCC has always paid a dividend of 20 per cent. However, it is only since the last five fiscal years that NBCC has started paying dividends. |
| 6. | The ROE and ROCF also stand comfortable at 23.5 per cent and 35.8 per cent respectively. | We wish to clarify that this statement is incorrect and is not stated in the prospectus. |
(ii) Article titled ‘NBCC to launch IPO in this Fiscal’ dated February 29, 2012, uploaded on your portal (“Article 2”)
| Sr. No. | Incorrect Fact Mentioned In Article 1
(Excerpts from Article 1) | National Buildings Construction Corp's
Response |
|---|
| 1. | It also boasts of a good list of contractors like… Shapoorji Pallonji | The statement is not stated in the offer document. |
| 2. | The management has said the top 10 contractors, including them, carry out about 70% of its construction work | The statement is not stated in the offer document. |
In view of the above inconsistencies and misleading statements made in Article 1 and Article 2, we request you to kindly publish a suitable clarification in this regard to provide the readers a correct position vis-à-vis our company.
- A.K. Singh
Sr. GM/Co. Secretary, NBCC