Key takeaways of the conference call

Order book as end of Dec 31, 2018 was Rs 9537.3 crore of which about Roads was Rs 7435 crore [or 78%]; Power T&D EPC was Rs 1356.8 crore [or 14%] and Railways was Rs 745 crore [ or 8%]. Of the road order book of Rs 7435 crore about Rs 4893.4 crore was Road BOT and Rs 2542 crore was Road EPC projects.

The company emerged as Lowest Bidder (L1) for a rural electrification project worth Rs 214.2 crore in Jharkhand. The project is for Jharkhand Bijli Vitran Nigam and has to be completed in 18 months.

Contribution of T&D business in Q3FY19 was about Rs 248 crore (up from Rs 128 crorein Q3Fy18).

Maintain the revenue growth guidance of 35-40% growth for FY19.

In 9mFY19 there is not much of traction on bidding and awarding of road projects. However the company expects the awarding to pickup in next couple of months.

The company received appointed date for Ankleshwar Manubar Expressway (HAM project) on December 10, 2018. The project won with a bid project cost of Rs 1687 crore has to be completed with-in 910 days from appointed date. Expect to get appointed date for all balance four project before March 2019.

Got favorable award in arbitration for various claims relating to Bhandara Road Project. The total award is for a claim of Rs 168.01 crore.

During Q3FY19, the company received Provisional Completion Certificate for 2 Annuity Projects i.e. Bagewadi Saundatti Road & Hungud Talikot Road. The Commercial Operation Date (COD) for both these projects is October 1, 2018. It has also got extension of 703 days in Concession Period for Ahmednagar Aurangabad Road (SH60). The extension is from December 19, 2018 - November 22, 2020.

The Ministry (MORTH) focus is to ensure that pre-construction activities are substantially completed before award of projects. NHAI decided to go for bidding/tender only after completion of land acquisition. Currently about projects with a value of about Rs 1 lakh crore are under bidding pending for award. Expect the month of February to see strong awarding and if that not happen before election code come into effect, there will be another four months delay.

The company has provided Rs 40 crore on prudent note against a receivables of Rs 60 crore from GVR Infra, which is under NCLT ambit.

Chennai ORR – Current stake is 50:50 between the company and GVR Infra. But GVR's 24% stake is pledged to the company so the company's exposure as far as Chennai ORR is covered. In case of Chennai ORR, the 24% stake in SPV is pledged and that is good enough to cover the receivable in that projects.

Cash balance at end of Dec 31, 2018 stood at Rs 30 crore.

Capex including WIP in 9mFY19 was 160 crore and for FY19 it will be about Rs 200 crore.

Land acquisition is considered completed only if 3G and 3H drawings are put in place and funds transferred into the account of the landowner. In case of Belgaum-Khanapur HAM road project about 90% of 3G is completed but only 26% of 3H is completed. In case of Karanataka II project while 91% of 3G is completed but 3H completion is way behind around 30-40%. In case of Karnataka Package I only about 36% of 3H is completed. In case of Khrar-Ludhiana about 89% 3G is completed and about 66% 3H is completed.

Since land acquisition has not completed for Karnataka Package I &II project there will be a delay of 2-3 month.

City Gas Distribution Business - Morgan Stanley India Infrastructure (MSII) has made an private equity investment of Rs 150 crore in Unison Enviro Private Limited (UEPL), a wholly owned subsidiary of the company. UEPL builds and operate CGD network across cities and towns in India. Fund to meet equity requirements of the City Gas Distribution Business. ABL & MSII will hold shares in UEPL in the ratio of 51:49. Initial investment will be Rs 35 crore from both the partners.

In case of 5 HAM projects, against an equity commitment of Rs 476 crore, the company has invested Rs 128 crore so far in current fiscal and balance will be invested in FY19-20 balance 4 projects appointed date is expected soon.

Other income for the quarter comprises largely of Interest income.