Key takeaways of the conference call

Toll revenue received from the 10 operational toll road projects (apart from NSEL which is an annuity project) have increased by 13.9% to Rs 274.99 crore in Q1FY19 from Rs 241.42 crore in Q1FY18.

Of the seven HAM projects under implementation, the company has completed construction to the extent of 45% for Rampur Kathgodam (in Uttarakhand) Package 1 and applied for second grant. As far as Rampur Kathgodam Package 2 the company has completed construction for 14% as land is not yet made available in certain portion of the project. The company has completed 44% in case of Bhavnagar Talaja (in Gujarat) and has got second grant as well. The company has completed construction to the extent of 32% in case of Uno Kodinar (in Gujarat) as land not made available for certain portion of the project. The company has completed 27% of construction for Bangalore project (BRT Tiger Reserve Boundry-Bangalore) and Udaipur Byepass. As far as Waranga-Mahagaon project is concerned the construction is completed to the extent of 7.5% as DOA was issued only in Q1FY19.

Out of balance 5 HAM projects, the company has concluded Financial Closure (FC) for Jadhpur Ring road project and expects to conclude FC for rest of the projects by Sep 2018.

Overall traffic growth in Q1FY19 was 6.5% in its 11 operational road projects. It expects very healthy traffic growth in the coming period also. Strong growth in traffic in Q1FY19 was driven by Rohtak-Hisar and Rohtak-Panipat roads project. The company with pick-up in economy, expects traffic growth to increase in double digits which it have seen in past also.

Daily toll revenue was Rs 3.22 crore in Q1FY19 compared to Rs 2.88 crore in Q1FY18.

Outstanding order book as end of June 2018 was Rs 720 crore including maintenance work of 12 HAM project. The order book will get executed in next 24 months. Maintenance work of Dhule-Palesner, Hyderabad Yadgiri, Bijapur Hungund will commence in second half of current fiscal.

Equity infusion in HAM projects as on June 2018 was Rs 321 crore. Balance equity infusion in 12 HAM projects at gross level was Rs 1000 crore and net it was about Rs 470 crore.

The company is confident of achieving the fiscal start guidance of Rs 1200 crore of revenue from operational SPVs with an EBITDA margin of 85% for FY19. Similarly the company is also confident of achieving standalone revenue guidance of Rs 400 crore for FY19.

The company is confident of cash profit of Rs 450 crore for FY19 compared to Rs 280 crore in FY18.

 NHAI has projects worth Rs 36612 crore for which bids has to be submitted by end of Sep 2018. Expect competition not be high with only about 4-5 bids expected for a projects. In Q4FY18 there is only about 5-6 bids for a project.

EBITDA margin of Q1FY19 level to sustain for balance quarters of current fiscal.

Mobilization advance applied and due is about Rs 400 crore from six HAM projects which it expects in a month.

Commencement of construction of 7 HAM projects and additional 5 new HAM projects will add cash profit at standalone cash profit.

Debt at SPV level is Rs 6944 crore and of which about Rs 1800 crore is NCDs, which is a fixed rate for 3 years.

In the near term the company is not expecting any major increase in finance cost.