Key takeaways of the call

Order book of the company as end of June 30, 2016 stood at Rs 3759 crore. Secured order worth Rs 492 crore in Q1FY17. Order intake so far (as on July 25, 2016) in current fiscal stand at Rs 965.46 crore. L1 orders (excluding the orders converted/secured/announced of Rs 472.81 crore in July 25, 2016) is Rs 250 crore.

Share of government orders in the order books is 60% and private order is 40%. Order book mix is Institutional is 32%, commercial 6.19%, hospitals 11.53%, infrastructure 10%, residential private is 19%, residential government is Rs 9.64%.

The company expects a revenue growth of about 20% (or around Rs 1500-1600 crore) for FY17. As far as margin is concerned the company expects an EBITDA margin of about 13%-13.5% for FY17 and PAT margin of about 6.5%-7.5%. For next fiscal too the company is expecting a similar 20% growth in revenue.

Long term Debt as end of June 30, 2016 is Rs 110 crore and this includes Rs 25 crore of loan from promoters. Cost of debt is 11.5%. Debts by end of fiscal will be remain at current levels. Cash is Rs 80 crore and the cash position include bank guarantee of Rs 50-60 crore.

Kota Project: Start generating revenue but that is not significant right now and will gradually pickup. By end of current fiscal the revenue out of this project is expected to growth to a size of about Rs 1 crore per month.

Tenders under pipeline of Rs 1500-2000 crore. Governments either State or Central are focusing on building hospitals, educational institutions and affordable housing. So the company is confident of good order booking for current fiscal.

The company does not require fresh capex till it cross a sales of Rs 1800 crore. Afterward it require to make a capex of 10% of its incremental revenue. Maintenance capex will be 2.5% of revenue. Maintenannce capex of Rs 15-20 crore.

Gross block as end of June 30, 2016 was Rs 350 crore. Retention money stands at about Rs 133 crore. Retention money is part of recievables of more than six months.

The company made a provision for debtors is Rs 5 crore in Q1FY17. In corresponding previous period there is no such provision. This provision towards debtors is related to on order which is in arbitration.

Slow moving orders part of current order books is about Rs 500-600 crore. All these projects are moving slowly and not stalled. If any orders stalled for more than 3 months that will be removed from the order book.