Key takeaways of conference call

Consolidated revenue for the quarter ended Sep 30, 2012 was higher by 1% to Rs 187.61 crore but its PAT was lower by 17% to Rs 3.51 crore. In Q2FY13 Clean Room Partitions and BMS segment grew by 38.5% yoy and real estate business grew by 45%. However EPC business degrew by 26% to Rs 78.10 crore.

EPC order backlog stood at Rs 2506 crore as end of Sep 2012 but that includes slow moving orders of HDIL, Renaissance as well as that of TN assembly. Excluding this slow-moving orders, the order backlog will be around Rs 1100 crore.

Order intake of EPC business is about Rs 52.5 crore in Q2FY13 and Rs 183.95 crore in H1FY13. EPC expects improvement in order execution going forward.

The company as a strategy is now focusing more on turnkey orders as that are with high value addition and thus better margin. EBITDA Margin in case of typical EPC projects/orders were about 15% but that in a turnkey orders it can go upto 25%.

Thus there is less focus on low margin highly competitive item rate contracts. Turnkey orders right from designing of about Rs 300 crore were picked up so far.

Some of the key turnkey orders bagged recently by the company include orders from Godrej properties, the order from Unitech is for Rs 70 crore for residential and multilevel car park at Chennai. Two orders worth Rs 70 crore each at Ludhiana (for hospital) and in Pune (for School).

In Q2FY13 the company has sold a commercial building i.e. ‘Al Monte' at Pune for a total consideration of Rs 29.38 crore and of that about Rs 28.88 crore is already collected.

Real Estate revenue in Q2FY13 includes the realization i.e. Almonte. Sales revenue of Real Estate business is about Rs 30 crore and that has dragged the margin. In Q1FY13 top-line about Rs 41 crore is of Phoenix. Almonte proceedings, fully booked in p&L. The company expects sell of another commercial project worth Rs 25 crore in next fiscal.

Real Estate new launches – to launch about 4.45 mln sft is expected to be launched and this are used by the component manufactures and this are spread over , orgadam Chennai, nashik, Coimbatore

Expects a revenue of Rs 170-180 will be real estate. Equal from bms and balance from hospital.

Of the bmp revnue of Rs 180 crore about Rs 60 crore is mep jobs and Rs 20 crore by bms.