Key takeaways of the conference call

Order backlog as end of Sep 2010 was Rs 4490 crore. The L1 orders are very small at about Rs 51 crore spread over two projects worth Rs 32 crore and Rs 19 crore.

In the second quarter the subdued profits is largely on account of cost overrun in the multilevel car parking project. The impact of the same on the profits is Rs 8 crroe and this has a drag on the bottomline.

Typically the fourth quarter is the best for the company and the second quarter has seen lower conversion of the order book on account of rain.

The escalation in cement and steel price is a concern. The company has two government projects on fixed price basis. These two contracts together worth about Rs 300 crore and the company has to take up the issue with the Government. As far as contracts linked to WPI the company will recover to the extent of 95% even though 100% recovery is not possible. In the pass-through contracts there is no problem.

The company has negotiated a BoP order with a private player and it has to get the LoA. The contract is Rs 240-300 crore and the project is an 2X150 MW project. The company is not pre-qualified for PSU orders as it does not have referrals.

The company expects an EBITDA margin of 9% for the H2FY11 and for full year the average EBITDA margin will be about 8.2% for FY11.

In BOT space - the company is looking at Urban infra especially multi level carparking projects, Roads (the company has PQ for NHAI project, the bidding for the same will be in fourth quarter), solar power upto 5MW.

Cost of debt for the company is 11.5%.

Around Rs 630 crore anticipated from airport project.