Key takeaway

Standalone revenue for the quarter ended Jun 2014 was higher by 22% to Rs 685.51 crore. Of the revenue the share of transportation sector is Rs 479.34 crore (BOT is Rs 280.21 crore & EPC is Rs 199.13 crore), irrigation sector is Rs 67.84 crore, the mining sector Rs 136.37 crore and power generation was Rs 1.96 crore. With EBITDA margin was marginally higher by 10 bps to 10.4% the EBITDA was up by 24% to Rs 71.51 crore. The PAT was eventually higher by 67% to Rs 26.99 crore.

Order book as end of Jun 2014 was Rs 8336.08 crore and of which transportation order book is Rs 4195.70 crore (BOT is Rs 2850.69 crore & EPC is Rs 1345.01 crore), irrigation order book is Rs 1871.88 crore and mining order book is Rs 2268.51 crore.

The Chhindwara Project will be completed by Nov 2014. The Shreenathji-Udaipur (SUTPL), Bhilwara Rajsamand (BRTPL), and Rohtak Hisar (RHTPL) will complete by Jun 2015. The construction for Mysore Bellary project will start in H2FY15.

Average EBITDA margin for mining will be 18-20%, road sector will be 11-12% and for irrigation it will be about 7-8%.

The company is well geared to tap opportunities that crop up in all the three verticals of transportation, mining and irrigation.

Tendering and awarding of EPC projects by NHAI will start happening in couple of months. Projects of different ticket sizes are up for awarding. In case of BOT project the tendering and bidding will happen in H2FY15.

Thought process of NHAI as far as BOT is concerned is if a project grant is more than 20% award it as EPC and then toll it on completion by itself. Tendering of BOT projects, that did not elicit any interest when it was called for earlier, will happen after 2 months as NHAI has to work on it a bit more. The company continues to focus on both BOT as well as EPC. In case of BOT projects the company will surely bid if the project is lucrative and is within its focus geography/area.

In case of irrigation, any tenders can be expected only after 5 months as at-least 5 months is required for design from announcement date i.e. Budget announcements. Karnataka has floated tenders for irrigation projects worth Rs 4000-5000 crore and that will be finalized in couple of quarters.

The company is confident of improving current EBITDA margins going forward.

The company is currently executing or executed irrigation projects in the states of Gujarat, MP and UP.

Of the revenue of Rs 685.51 crore the share of irrigation and mining stood at Rs 67 crore and Rs 136 crore respectively. The transportation vertical revenue is Rs 479.34 crore.

H2FY15 will see strong contribution to top-line and profitability from Karnataka State Highway project and Rohtak Hisar project.

Mining - Large tenders were called by Orissa Power Corporation and there also projects from Tata. This gives strong project visibility.

Monetization of assets/projects, where it has minority stake is looked at but happening of that all depends on the valuation.

Maharashtra Check-post (MBCPNL) – of the total 11 check-posts about 9 has started tolling with tolling on 3 check-post start recently. The toll collection is about Rs 25 lakh/day.

Debt (net of cash) in the books of SIPL Holding company level is Rs 290-295 crore as end of June 2014.

Traffic in Hyderabad Yadgiri project has grown by 15-16% in Jan-May and post May 2014 it has grown by 20-22%. The traffic at ARR is up by 5-6% in Q1FY15 and in case of Bijapur Hungund the traffic grew by 6%.

Equity invested in MBCPNL, SUTPL, BRTPL and RHTPL as end of Jun 2014 is Rs 285.27 crore, Rs 103.72 crore, Rs 133.30 crore and Rs 63.72 crore respectively. The company will invest about Rs 200 crore, Rs 35 crore and Rs 66 crore in SUTPL, RHTPL and MBCPNL in 2014-16.

The company may end the year with a tax rate of about 24-25%.

The company sold old equipments with a gross block value of Rs 85-90 crore in Q1FY15 and the company bought equipments worth Rs 45-50 crore. The company may incur a capex of other Rs 30-35 crore for projects on hand.