MBL Infrastructure held its conference call after September 2015 quarter results

Anjanee Kumar Lakhotia, Chairman & Managing Director addressed the call

Highlights of the call

For the quarter ended September 2015, it registered a 17% rise in consolidated sales to Rs 412.56 crore. PAT fell 14% to Rs 18.88 crore.

For the six months ended September 2015, it registered a 19% rise in consolidated sales to Rs 1025.47 crore. PAT grew 7% to Rs 48.80 crore.

For the quarter ended September 2015, it registered a 17% rise in standalone sales to Rs 406.10 crore. PAT fell 17% to Rs 17.68 crore.

For the six months ended September 2015, it registered a 19% rise in standalone sales to Rs 1018.88 crore. PAT grew 5% to Rs 47.07 crore.

Second quarter is the weakest quarter due to monsoon season.

The company is in to EPC projects. Road and highways account for major portion of its projects.

Since last few months road and highways orders are seeing hectic activity. The management expects the industry to release Rs 10000 crore orders per month for the next 6 months in the road and highway sector.

The company expects to acquire orders worth Rs 3000 crore in next 2 quarters. These will be dominated by the road projects. Execution time would be 24-30 months varying from project to project.

Also it expects to win Rs 500 crore orders from railways and other infrastructure projects.

Consolidated new worth is Rs 705.3 crore

Net working capital cycle is 167 days, which the company plans to bring down significantly.

Cost of debt is approx 12% on consolidated basis.

Decline in net profit is due to onetime escalation of Rs 5 crore recognized in Q2 of last year for its Guwahati projects.

MBL has five projects in its BOT portfolio (two operational and three under construction) aggregating 427 km. The company expects to complete construction and start toll collection by September 2016.

Total Order book stands at Rs 3724.0 crore (contract value) as on Sept 2015.

Out of this Road and Highways account for 71%, Housing and building account for 15% and remaining is from railway and metros and other infra projects.

The company has Rs 2150 crore unexecuted order book as on as on Sept 2015.

The company expects to see good growth in its order book in the near future.

In FY 2016 the company expects Rs 2400 crore of sales, up around 20%. EBITDA is expected to be at around 10-12% and PAT is expected to be around 4.25-4.75%.

Debt at the standalone level is Rs 848 crore. And this has increased from Rs 711 crore as of March 2015. By the end of 216 it will come down significantly. .

BOT projects in the order book are worth Rs 250 crore.

Waraseoni-Lalbarra BOT project contributed Rs 1.70 crore by way of annuity and toll in first six months.