Key takeaways of the conference call

Current order book (including L1 orders) stand approx at Rs 3035 crore including the Rs 238.95 crore worth of orders announced in Feb 15, 2011. The order book mix is about 42% from roads, 5% from bridges & flyovers, 40% from buildings, 1% from sewerages, 10% from power distribution and the balance 3% is accounted by irrigation, railways and others.

The current development projects have an aggregate equity commitment of about Rs 345 crore upto FY2013 of which about Rs 75-80 crore in FY11, about Rs 120-30 crroe in FY12 and about Rs 130-140 crore in FY13. The company has already invested about Rs 55-57 crore in Supreme Manor Wada Bhiwandi infrastructure, which is entrusted with four laning of the Rs 430 crore BOT project of Manor Wada Bhiwandi Road in Thane by PWD of Maharashtra. The preference allotment to promoters will bring in about Rs 50-55 crore and this will will take care for the equity commitment for next one year along with internal accruals of about Rs 30-35 crore.

Slowdown in real estate segment is not going to impact the company as major portion of building order book of Rs 1150-1200 crore (or 40% share of total order book) is from government and government agencies/ state PSUs. The major building contract from private realty players is that from Ramprasad Developers in Delhi worth Rs 230 crore. This project is from a reputed developer and the project is well funded by leading multinational banks and their is no funding concerns to affect the project. This ramprasad project is also bagged after the promoter shortlisting candidates on the previous works.

As far the order from Ramky is concerned the payment to the company is to come from HSRDC.

All the projects part of order book is progressing as per schedule barring the NaviMumbai Hospital project which has been delayed on account of Soil testing issues.

Getting EPC job at fair value has become a challenge either with MMRDA or any other Tier II cities in Maharashtra etc .

On standalone basis the company bidded for Rs 1200-1300 crore worth of contracts in power distribution segment.

The company has bidded for 2-3 BOT projects of NHAI including one in Rajashtan and another in MP. The size of each order will be in the range of around Rs 700 crore.

Sand availability has become a threat apart from sharp escalation in prices of sand. The company managing the situation sourcing river sands from Gujarat and RMC of the company at Rajasthan and Guragaon. This kind of situation can't last long. Rajasthan & Gurgaon RMC is also brought to mumbai. The company has also used Crushed sand (from stone aggregates) mixed with river stand. Even the prices of crushed sand price has moved up from 900/ brass to 1600/ brass. On cubic meter basis there was increase in cement consumption to the tune of 3 kg and overall cost escalation is about Rs 300-400/ cubic meter. Coromandel cement started producing artificial sand. This kind of supply scenario could not sustain for long as the royalty is not going to government.

Capex – The company has spent not more than Rs 20 crore in the first nine months of current fiscal. Most of EPC projects such as Chitradurga are getting completed so demobilising is underway. So there is no need for big capex next fiscal and it could be a maximum of Rs 25 crore.

The gross block as end of Dec 2010 was Rs 225-230 crore, gross debt was Rs 350 crore and cash position was Rs 32.53 crore.

Average rate of interest cost is 11%. This is as it converts its wc into to FCNR.

The typical EBITDA Margins in Roads projects for the company is around 15-15.5%. Similarly in power projects it will be 20-20.5% and in case of other verticals it will range between 18-19%.

The Rs 220 crore Kasheli project involving construction of two bridges for up and downward in Thane Bhiwandi road is completed to the extent of 86-87%. The remaining portion of the project is expected to be completed by June 2011 and the toll collection is expected to start by June 2011. The company has 10% stake in the SPV for this project. project is is executed barring 2 bridges of up and downwards fromthane-bhiwandi. Other part will be by end of June 2011. The SPV start tolling by Sep-0ct 2011. The company has 10% stake in the SPV developing this project.

Tolling for at least one side of the 64 km Manor Wada Bhiwandi project is expected to commence in Nov 2011.

Revenue of the company for the quarter was up by 68% to Rs 240.29 crore and the growth in next quarter will be even better as the MHDCL power project, which was started one and half months ago and other newly started project will start contributing to the topline in a bigger way in Q4FY11 going forward. The company expects 45% growth annually.