Key takeaways of the call

Order book as end of June 2018 was Rs 4300 crore and order book as on today is Rs 4700 crore.

The company is looking at a sale of Rs 2000 crore for FY19 and an EBITDA margin of 13%.

Order under pipeline is about Rs 2000 crore in the focus area of company such as hospital and institutional building. The company has submitted 10 bids with Delhi Development Authority and expects bid opening will happen by next month.

Having built a robust order book the company is now focused on orders with better margin or that meets its target threshold margin.

Sales for the quarter would have been higher by 15% but for loss of sales to the tune of Rs 20 crore due to stoppage of construction due to tree cutting issue as far as Rs 50 crore CPWD redevelopment project in Delhi and a revenue loss of Rs 15 crore on account of halt of work for redesigning of Auditorium project in Kolkata.

The work on Kolkata auditorium project will commence in 1.5 months as the Chief Minister wants the auditorium to have a capacity of 2600 seats compared to earlier plan of 2400 seats. As far as CPWD redevelopment project in Delhi the tree to be felled is very less and with slight redesigning the project will get clearance work will commence.

Apart from this the muted sales in Q1FY19 is also due to high base as Q1FY18 had the benefit of pre GST invoicing request of customers.

Typically the quarter ended June will account only 20% of the revenue of a fiscal in the last 5 years but for last year. Q1FY18 accounted for 30% of the FY18 revenue as execution and billing/invoicing were fast tracked to Q1FY18 well before the implementation of GST in July 2017. Q1FY19 revenue was in line with empirical trend accounting 20% of the FY19 revenue guidance.

Talkatora project arbitration – The case is in last stretch with technical matters discussed and expect it to conclude in next 3 months.