Key takeaways of the call

Order backlog 9764 crore and of which road project order book was Rs 7995 (or 82%) and balance Rs 1769 crore was Power T&D order book. Of the road order book of Rs 7995 crore about Rs 5372 crore was HAM/BOT projects and EPC projects was Rs 2623 crore. There is no order inflow in Q2FY19.

Current order book does not include the Rs 794 crore orders received from Rail Vikas Nigam (RVNL) as the company is not yet got the LOI for it yet.

The company has emerged as lowest bidder (L-1) for orders worth RS 794 crore for 2 packages of RVNL in Q2FY19. The order value of Package 1: Sonagar to Japla was Rs Rs 385 crore and this package has to be completed within 42 months. Similarly the value of package 2 i.e. Japla to Gather was Rs 409 crore, which has to be completed within 42 months. This RVNL order is for construction of roadbed, bridges, installation of track, electrical, signaling and telecommunications works in Dhanbad Division of East Central Railway.

FC for all 5 HAM projects in time and submitted document to NHAI. Not got appointed date for 5 HAM project but expect appointed date for 3 projects in Q3FY19 and for another 2 projects in Q4FY19. While the land acquisition was very much in advanced stage for Belgaum-Khanapur, Khairatunda-Barwa Adda road and Ankleshwar-Manubar with land acquisition completed for over 80% of the total requirement and that for both the package for Tumkur-Shivamoga was completed only for 50% of the total requirement.

Strong execution of robust order book EPC revenue registered strong growth in Q2FY19.

Project tendering and finalization to pick up pace in next 3 months. The company has already submitted bids for orders worth Rs 30000 crore and expects new order inflow of about Rs 4000-5000 crore in H2FY19. The order intake is likely from roads and railways.

The company has invested about Rs 134 crore in HAM projects in Q2FY19. Balance equity invested in development projects was Rs 92 crore in FY19 and Rs 300 crore in FY20 and Rs 136 crore in FY21.

Expecting a revenue growth of 35-40% for FY19 with EBITDA margin in the range of 13%.

Power T&D execution for Q2FY19 was about Rs 336 crore.

H1FY19 margin was positively impacted by early completion bonus and GST refund on older projects. So adjusting for this the company expects 13% EBITDA margin for FY19.

GVR Infra is referred to NCLT and the company has receivables of Rs 82 crore pertaining to Chennai ORR, where GVR holds 60% stake and balance by the company.

Extension in Concession Period and Permission of Toll Collection from 8th September 2018 to 18th December 2018 for Ahmednagar to Ghodegaon and Ghodegaon to Wadala projects from Public Works Department, Maharashtra.