Key takeaways of the call

The company in Q3FY19 & 9mFY19 has secured fresh orders worth Rs 4557 crore and Rs 11897 crore respectively. Thus the orders book as end of Dec 31, 2018 at Rs 34185 crore.

So far in Q4FY19 the company bagged orders worth Rs 7000 crore and thus the company expect to close the current fiscal with an order intake of about Rs 20000 crore.

The company is confident of surpassing earlier FY19 sales guidance of Rs 11000 crore. Expect the Q4FY19 revenue will be atleast 10% higher than Q3FY19 revenue. EBITDA margin for full year will be about 11.5-12%.

Advance to subsidiaries as end of Dec 31, 2018 was Rs 591 crore down from Rs 625 crore at the start of the current fiscal. The company got repayment of loan to the tune of Rs 50 crore in Jan 2019. NCC Urban has re-paid Rs 85 crore so far as against the target of Rs 100 crore for current fiscal. Investment in subsidiaries as end of Dec 31, 2019 was Rs 956 crore.

Capex for Q3FY19 and 9mFY19 was Rs 122 crore and Rs 323 crore respectively and the company expects the capex for FY19 will be about Rs 400 crore.

Gross Debt as end of Dec 31, 2018 was Rs 2850 crore compared to Rs 2500 crore as end of Sep 31, 2018. The increase in gross debt instead of expected fall is largely as the company have to make heavy capex on one large road project in Q3FY19 and that as well as collections not happening as expected due to election in five states. This has resulted increase in Gross debt.

By end of March 31, 2019 the company expects the standalone gross debt is expected to fell down to Rs 2160 crore [plus/minus Rs 50-100 crore] as collection is expected to happen in a big way in Q4FY19.

Expect a mobilization advance of Rs 250 crore in next 30-45 days on orders already bagged.

Electrical contribution in Q3 was higher and given higher margin

Telengana – collections was disturbed for 2 months due to elections. AP collections are normal with one month delay.

Neroji Nagar order the status quo continues as the hearing has not completed as expected by March 2019 expect outcome in court hearing.

Of the company's order book Andhra Pradesh accounts for about Rs 14000 crore of orders. And that was followed by Maharashtra, Uttar Pradesh, Delhi, Telengana, Karnataka, Bihar and Jharkhand.

The company in the month of January 2019, announced receipt of new orders totaling to Rs 4089.7 crore (exclusive of GST). Out of this, three orders totaling to Rs 922.5 crore pertain to Roads Division, five orders totaling to Rs 2580.6 crore pertain to Building Division and one order of Rs 586.6 crore pertains to Water Division. These orders are received from Central / state government agencies and do not include any internal orders.