Key takeaways of the call

Order book (excluding L1 orders) as end of December 31, 2017 was Rs 9644 crore. Of the total order book about 31.22% is BOT road project, 31.61% is EPC road projects, 14.44% is irrigation orders and 22.74% is mining orders. In addition there was L1 orders worth Rs 167 crore. New orders added during Q3FY18 was about Rs 2549 crore.

Execution was driven by transport which grew by 15%yoy with six HAM projects contributing Rs 186 crore to construction revenue in Q3FY18. Margin of transportation stood at 11.29% compared to 10.85% in corresponding previous period.

Expect to close FY18 with an revenue of Rs 3700 crore (down from Rs 3800 crroe stated earlier). The company expected to close FY18 with an EBIDA margin of 11.35%. The company having bagged fresh orders worth Rs 4432 crore in 9mFY18 expect to close FY18 with an OI flow of Rs 7000 crore. FY19 guidance: Revenue Rs 4300 core; EBITDA margin of 11.50%; OI 8000 crore.

Downward revision of STO guidance for FY18 by Rs 100 crore is largely due to delay in getting appointed date. The company recently got appointed for Ahmadabad-Rajkot after long delay. Similarly the appointed date for Rampur projects also came with a delay of over 12 months. The company expects appointed date for Warangal project only by first week of March 2018.

The company has submitted bids for NHAI EPC projects with an estimated project cost of Rs 2670 crore for which bids were submitted but not yet opened.

NHAI have about 56 EPC projects with a distance of 232000 km under tender/bidding pipeline. Financial bids for these projects are to be submitted before March 2018. The company PQ for all 13 packages of Mumbai Nagpur projects for which financial bids are to be submitted soon.

Irrigation there are orders with an estimated project cost of Rs 10268 crore is under bidding/tender pipeline in the states of MP, Karnataka and Rajasthan. Bids for these irrigation order are to be submitted before March 2018.

By end of FY18 the debt is expected to come down to Rs 1250 crore from about Rs 1450 crore level as end of Q3FY18.

Strong cash flow is expected going forward. Mobilization advance of Rs 127 crore is expected from 2 HAM projects i.e. Udaipur Bypass and Rampur-Kathgodam Package II in Q4FY18. Further the company expected the amount struck in Mysore-Bellary project is to get released as the project recently got COD in Dec 2017. In Q4FY18 the company expects Rs 10 crore of cash flow in Q4FY18. Further the company expects Rs 40 crore from Yamunanagar Panchkula project.

Claims worth Rs 620 crore are under arbitration currently and expect award soon.