Key takeaways of the conference call

Order intake so far in FY17 was Rs 1360 crore and order book as end of Sep 30, 2016 stand at Rs 4355 crore. Current order book will be executed over next 2-2.5 years. In addition the company is L1 in one order worth Rs 90 crore.

About 67% of current order book is from public sector and balance 33% is private sector. The share of private sector real estate project is just about 20%. Fixed price contract in the order book is just about Rs 140 crore.

Order pipeline is robust at about Rs 1500 crore with tenders largely coming in areas such as healthcare, education and bank buildings. The company in negotiation for some commercial real estate projects in Gurgaon.

Debt as end of Sep 30, 2016 stood at Rs 89 crore, which is largely a short term debt. Retention money amount to about Rs 138 crore as end of Sep 2016.

The company is on track for its FY17 revenue growth target of 15% and EBITDA margin of about 13-13.5%. The company expects its FY18 revenue to grow by about 20% with about 0.5% increase in margin.

Order inflow target for this fiscal is Rs 1600 crore and the company is not reviving the OI target.

By end of this year the impact of legacy order book will be finished.

De monetization will have only minimal impact. It is minimal as only 20% of its order book is exposed to private RE sector. The impact on cash payments to workers and contractors will be shorter.

Total receivables are Rs 550 crore including those from ongoing projects, slow moving projects. The company is in the process of picking up completed inventory from the private real estate clients from who owes the company. The company has identified flats worth Rs 80 crore and currently the paper works are underway. These Rs 80 crore is about 60-70% of outstanding against those handful of clients. The company will take over possession and sell it off.

The arbitration money of Rs 7 crore is expected in this Q3FY17.

Kota Project – This project is expected to bring in revenue of Rs 20 lakh /month starting next month. From Jan 2017 onwards revenue of Rs 30 lakh/ month is expected. From CY2018 onwards the company expects Rs 1 crore per month is expected. EBITDA margin is expected is 13-14%.

In the past 6 month the company picked up completed inventory as against receivables worth Rs 80 crore.

NGT order stalling execution of couple of project of the company in Bihar as well as monsoon has hurt the order book burnout in Q2FY17. Now execution of the stalled projects has restarted with go ahead mandate received last week. And the share of these two Bihar projects in the order book is about Rs 350 crore.