Financial Highlights:

The company for the quarter ended September 08, showed subdued results with its topline growth clocking 8% to Rs 402.61 crore. OPM contracted by 150 bps to 10.3% pulled down operating profits by 6% to Rs 41.44 crore. Other income fell by 31% to Rs 3.14 crore and thus PBIDT was down by 8% to Rs 44.58 crore. Interest cost fell by 17% to 2.89 crore and depreciation increased by 24% to Rs 4.69 crore and taxation increased by 8% to 12.75 crore, lead Net Profit down by 11% to Rs 24.25 crore.

Other key takeaways are as follows

The subdued growth in the top line was on the back of slow down in some projects. The company has slowed down work in some projects where it has not received timely payments. The other reason is pertaining to the change in service tax rules of material supply (free supply of cement and steel) from June 08. Orders from Northern region with worth of Rs 400 to 500 crore are free of cement and steel (material supply). But in the southern region all the projects except one are with material supply.

The total order book of the company for the quarter ended September 08 amounts to Rs 3000 crore, covering 74 projects. Hotels and other developers constitute most of the order book. The order execution period is around 15 months.

The new order inflows in the quarter are around Rs 370 crore covering 7 to 8 projects. Only one project of the company is on the base of price escalation clause and around Rs 150 crore of balance work is to be done on that project.

The BPTP project worth Rs 1000 crore is a SEZ located in NCR region (2 in Noida, 1 in Gurgaon, and 1 in Faridabad ) and covers around 10 million sq ft of area.

The company has raised Rs 40-50 crore through commercial papers with interest bearing 10.5% against working capital interest of 12.5%. Thus interest cost for the quarter ended September 08, was lower at Rs. 2.89 crore. Interest income of 1.80 crore is included in other income for the quarter ended September 08.

The company has bid for around Rs 2000 crore of projects, of which it expects to receive orders of Rs 700-800 crore in Nov-Dec.

The total debt on the books is around 112 crore, and cash on hand is Rs 35 crore as on 30^th September’08.

The inventory turn around ratio of the company is around 52-53 days and the debtor turn over ratio has increased by 5 days to 85 days from Q1 FY09.

The Net working capital as a function of turnover is around 25-27%, for the quarter ended September 08.

The company has 3 projects ranging Rs 60 to 70 crore each, from large developers where the work is slowed down for the FY 09. The company is yet to receive Rs 18 crore from the three projects.

Soul Space (one of its subsidiary), is about to sell 2 of the Bangalore based projects worth Rs 150 crore in the next two months. The company gets around 60% of the share from the sale of above two projects. Other than the above two projects, all the other buildings are on lease basis from this subsidiary.

The company expects its next half topline to be around 120% of H1FY09 and expects to maintain 10 - 12% of EBITA margins for FY 09.