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Ramky Infrastructure held a conference call on June 1, 2011. In the conference call the company was represented by Y R Nagaraja, Managing Director, Goutam Reddy, Executive Director and R S Garg, CFO.
Key takeaways of the conference call
Consolidated revenues for FY2010-11 were up 54% to Rs 3146.96 crore for the year ended March 31, 2011 and the EBITDA was Rs 459.29 crore reflecting 14.6% of revenue. The net profit after tax and minority interest was up by 62% to Rs 206.09 crore. Standalone sales for the fiscal was up 47% to Rs 2730.52 crore with the net profit being Rs 157.36 crore, translating into a growth of 53%.
For the quarter ended March 2011, the consolidated revenue was up by 54% to Rs 1283.88 crore and the net profit was up 37% to Rs 95 crore. On standalone basis the revenue was up 27% to Rs 1011.32 crore and its netprofit was up by 33% to Rs 62.50 crore.
The standalone company is investment vehicle for development projects as well as EPC construction company. The company has 14 BOT projects.
Order backlog of the company as on 31 March 2011 was at Rs 10998.84 crore. Of the total order backlog about Rs 1900 crore is building projects, Rs 2150 crore water and waste water treatment; Rs 4100 crore is road and bridges, Rs 620 crore is indsutrial building, Rs 620 crore Power T&D and Rs 1500 crore is irrigation.
Order inflow for the fiscal is about Rs 6000 crore and of which the external orders were worth Rs 3200 crore and about Rs 2800 was from own subsidiaries.
AP order exposure is Rs 3100 crore and of which from own subsidiary is about Rs 1500 crore (Narkatpally Road project is Rs 1200, ORR is Rs 300 crore). Remaining is attributable to state government project. Of the total order book of 1500 crore irrigation order book about Rs 1000 crore in from AP.
Of the total order book about Rs 4000 crore is from group captive projects and balance are external orders. Of the major group orders in the order book about Rs 2700 crore worth order are for BOT road projects predominantly of Srinahar Banihal, Shillong- Jorabat and Narkatpally-Addanki-Medarametla Road projects.
Since the company has build up its equipment base, the subcontracting component will go-down facilitating the standalone EBITDA margin to move up to about 11.5% from around 10.5% as of now. This will be subject to material cost inflation.
Pharma City - O&M revenue of pharma city to reach Rs 200 crore from current Rs 25 crore on full occupancy. The company is following % completion method. By FY14-15 the company expects full occupancy for pharma city. In total DTA area of 1100 acres barring 200 acres all other were already sold with an average realisation of Rs 32 lakh/ acres. Balance 200 acres land to be sold at a average realisation 60-70 lakh per acres. Ramky Pharma City made a net profit of Rs 42 crore (up from Rs 24 crore in FY10). On full completion, the company will make a PBT of around Rs 160-170 crore and a PAT of Rs 130-140 crore.
The company has completed Financial closure for Srinagar Banihal Road project (debt of Rs 1440 crore)in J&K, Shillong- Jorabat Road project(debt of Rs 800 crore) and Narkatpally-Addanki-Medarametla Road project (debt Rs 1060 crore). While the company has 50% equity interest in each of the Shillong and Narkatpally-Medarametla Road projects, its equity stake in Srinagar-Banihal project is about 74% stake.
Equity investment in 3 BOT projects is Rs 140 crore in FY11. The company has a commitment of Rs 150 crore in FY12 as the company has already given this Rs 150 crore in the form of working capital so there won't be any fresh cash flow from the company towards these projects.
All the 3 BOT projects of Shillong, Srinagar and Narketpally are in early stage of execution with work completion in the range of 8%.
Of the IPO Money, left out is Rs 24 crore. Equipment purchase money is not fully utilised as the company availed equipment finance. Hopefully in the second quarter that will be fully utilised.
The Hyderabad Township project is in the size of 1.5 mln sft of built up area and the company has sold about 75% of the space at an average realisation of Rs 3200/ sft. The average cost of construction and marketing including land and other cost is Rs 2400/sft. The company has already recognised 65% of the revenue from this project under percentage completion method.
Ramky Infra continues to focus on Water and Waste Water as one of its core areas. However in view of the huge demand from the Roads Sector, the Company has been equally focusing on this sector along with power T&D and terminal infrastructure.
Diversification continues to be one of Ramky's key growth drivers. The company has successfully moved into the EPC of BOP Segment by bagging a Material Handling Project at Sambalpur in Orissa. The Company is also in the process of venturing into the EPC of Hydro Power to tap the huge potential in the Power Sector.
To meet the growing manpower requirements, the Company added 687 employees during FY 11, taking the total number of employees to 2429 as on 31 March 2011.
Apart from Ramky pharma city the company has 4 industrial parks (3 in Chhattisgarh) the government has acquired land for these projects. The company will commence work on these project once it gets the land possession.
Captive power plant job will be taken up for the industrial parks project of the company. The company is targeting a captive power plant capacity of 500 mw in next 5 years to provide uninterrupted power supply to inhabitatnts. The company's first captive power plant project of 100 MW will be for Ramky pharma city at Vizag.
Consolidated debt is Rs 1200 crore and the standalone debt was around Rs 650 crore. Consolidated Debt will increase to Rs 2000 crore up from Rs 1200 crore as end of March 31, 2012 with working capital funding and debt of new BOT projects. The consolidated debt included the debt component of Rs 220-230 crore for ORR project, Rs 20-30 crore for Pharma City and that of other BOT road projects.
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