Key Highlights

Total orders in hand as on June'16 stands at around Rs 7450 crore on a consolidated basis. Of this order book, O&M orders would be of around Rs 600 crore. The company is currently executing more than 25 projects.

Of the total orders in hand, around 88% are from Roads and Highways, 78% from Housing and Buildings, 2% from Railways and rest from others. Around 62% of orders are from North and Western geography including Delhi, Haryana, Rajasthan, Uttarakhand, 24% is from Central geography particularly from MP and rest 14% from Eastern geography including Bihar, UP, Assam, Chattisgarh and West Bengal. 73% of orders are from NHAI, 22% from State governments and rest from others.

Of the total order book, the unexecuted consolidated order book stood at around Rs 5491 crore, of which around Rs 995 crore will be the O&M order book. And rest Rs 4500 will be the unexecuted EPC contracts as on June'16.

The company expects around Rs 3200 crore of orders to be won further in FY'17 going forward. The company has participated and bid for around 11500 crore of road projects and are at various stages. Most of these projects are EPC based projects and some are on hybrid model. These projects are on PAN India basis, with States like Rajasthan, Gujarat, Delhi and Karnataka being predominant.

Of the consolidated order book, around Rs 2900 crore of EPC orders relate to HAM projects. Here around 60% of the total funds are to be arranged by the company and rest 40% to be arranged by NHAI.

Consolidated debt/equity stands at around 1.91.

Of the June'16 quarter consolidated revenue of Rs 720 crore, EPC revenues stood at Rs 712 crore, up by 17% YoY and BOT revenue stood at around Rs 8 crore, up by 155% YoY on a smaller base of June'15 quarter. Ebidta margin for June'16 quarter for EPC segment stood at 10.5%.

MBL has signed an MoU with Piacentini, which is an Italian company engaged in construction and civil engineering business with expertise in major and complex maritime works. More details will be shared further as the year FY'17 progresses.

Central government has increased the focus on road development. In Apirl'15, the combined target for roads was set up at 10000 km, where NHAI share stood at 6000 km rest MORTH share. In April 2016 the government revised upward the target to 25000 km of award in FY'17, which includes around 15000 from NHAI and rest from MORTH agency.

In order to make time bound execution the government acquires around 80% of total land before any tendering of road projects.

Debtor's days are about 120 days. Working capital days stand at around 130 days for the company.

Under the hybrid HAM model so far around 13 projects amounting to around 1600 km of land has been awarded so far by the government.

For FY'17 management expects around Rs 2900 crore of topline with similar margins as in June'16 quarter

The company has won 2 Hybrid Annuity based projects namely Yamunagar (UP/Haryana Border section) of NH-73 in UP and Roorkee-Chutmalpur-Gagalheri station in UP and Uttarakhand. The total project costs of these projects is around Rs 2100 crore of which 40% will be funded by NHAI and the company's equity contribution will be around Rs 292 crore. Management has clarified that these 2 projects will also have healthy margins and the company has received these projects at 14% above NHAI estimates of Hybrid Annuity project.

The company does not require any equity funding for any of the existing 2 Operational BOT projects and 3 under construction BOT projects. The 3 under construction BOT projects are running as per schedule and management expects COD to be received for all these projects in FY'17, especially by the end of FY'17.

Further, management has clarified that it will not bid for any BOT project in next couple of years but will continue to bid for hybrid BOT projects.

Working capital appraisal of the company is in process and in the meantime Rs 4000 crore of orders were received by the company. The Promoter had pledged these shares for working capital requirement of the company. The de-pledging will happen post the sanction of this working capital limits. The pledged share remains at the same level and no de-pledging have started as of now, but it will start only post the new sanction of working capital which will happen soon.