Key takeaways of the conference call

Operating performance of the company has been in line with the expectation considering tough macro environment. The new order booking so far in current fiscal is positive especially in road, water and building sectors.

Consolidated operational income of the company for the quarter ended Dec 2011 stood higher by 12.5% to Rs 939.89 crore with upside in revenue come largely from Developer business. The EBITDA increased by 32% to Rs 144.12 crore. Finally the net profit increased by 14% to Rs 53.16 crore.

The revenue of developer business for the quarter was up by 160% to Rs 178.84 crore that of construction business was nearly flat at 1%. The inter-segment sales to be knocked off for the quarter is Rs 53.77 crore as against Rs 26.43 crore in corresponding previous period. While the EBIT of construction business was up by 15.6% to Rs 85.46 crore that of developer business was up by 69.1% to Rs 47.82 crore.

Spurt in revenue and profits of development business is not due to any one off items.

Income for 9mFY12 grew by 32% to Rs 2450.23 crore. The EBITDA was up by 44% to Rs 405.24 crore and the net profit increased by 24% to Rs 142.19 crore.

Order book as end of Dec 31, 2011 stood at Rs 13878.08 crore of which cash contracts is 67% and captive projects from Project SPVs of the company are 33%. State Government orders accounts 52%, Central government 12% and private 36%.

Roads & Bridges accounts 44% of the current order backlog with balance split with - Buildings 17%, Water & waste water 16%, irrigation 11%, industrial 8% and power 4%. The Order intake for the quarter stood at Rs 2870.74 crore. In terms of geography too the order book is well diversified with South India accounting 39%, North 29%, west 11%, Central Zone 10% and East 11%.

Order intake for the Quarter and 9month ended Dec 2011 is Rs 2874.84 crore and Rs 4966.94 crore respectively.

The company has about Rs 200 crore in inventory which the company could not bill as the milestones in those projects could not be crossed, which will be done soon. This is the reason for increase in working capital too.

Equity commitment in all ongoing project SPVs is about Rs 1100 crore of which it has already invested Rs 550 crore. Equity commitment in project SPVs in Q4FY12 is about Rs 117 crore and about Rs 336 crore in FY13.

Slow moving orders of the current order backlog is worth about Rs 800-900 crore largely in irrigation segment especially in Andhra Pradesh. The company has demobilized in all of these slow moving projects as of now and there is no payment outstanding against it. However the company expects work on these projects to move starting from FY13.

Of order inflow from road sector in Q3FY12 which accounts for about 87% of the total order inflow of the quarter came majorly from two road projects i.e. six laning of Agra Etawah Bypass and four laning of Hospet-Chitradurga section of NH 2 and NH 13 respectively.

While the Six Laning of Agra - Etawah Bypass Section is worth about Rs 1207 crore that of Four Laning of Hospet - Chitradurga road project is worth about Rs 1033.65 crore. The other road project bagged during the quarter is upgradation of state highway section between Soundatti to Kamatagi worth about Rs 225.50 crore.

First year toll collection of Agra-Etawah Bypass Road is about Rs 134 crore.

The company expects the order inflow from overseas business to grow by 10% in FY13.

Standalone revenue mix - Roads & Buildings accounted for Rs 253 crore, Water & waste water accounted about Rs 230 crore, about Rs 95 crore from industrial, balance others including irrigation, power etc.