Key takeaways of the call

Order book (net of GST) as end of March 31, 2018 was Rs 32532 crore of which the building order book was Rs 14580 crore, the roads orders were Rs 4247 crore, the water orders were Rs 6277crore, the electrical orders were Rs 1094 crore, the irrigation orders were Rs 2521 crore, mining were Rs 1605 crore and others were Rs 431 crore.

Order intake in FY18 was Rs 25304 crore (net of GST was Rs 23266 crore) and of which building orders was Rs 12000 crore, the roads orders were Rs 4189 crore, the water orders were Rs 5500 crore, the electrical orders were RS 1585 crore, the irrigation orders were Rs 903 crore and others were Rs 460 crore.

The company target new order accretion of Rs 14000 crore in FY19.

The company target to achieve a top line growth of 45% for FY2018-19 to Rs 11000 crore (from Rs 7560 crore in FY18) considering the substantial order booking during FY18. Moreover about 50% of the FY18 order intake is fast track orders to be completed in 2 year time frame and this gives confidence of strong growth in revenue around 45% in FY19.

Reported EBITDA margin for FY18 was 11.3%. There was an impact of one off at EBITDA margin to the extent of 0.7%. So excluding the impact of one off at EBITDA margin excluding the impact of one off is 10.26% in FY18. The company expects to maintain EBITDA Margin of 10.3% for FY18-19.

Target sales 45% growth in FY19 or about 11000 crore of revenue in FY19. 50% of order book is fast track orders.

Nauroji Nagar order is a fast track order to be executed in 2 years. Similarly the affordable housing project in AP of about Rs 6500 crore has to be executed in 2 year and the company has completed Phase I and handed over possession to client within first year of completion.

PAT margin for Q4FY18 was 4.2% and for FY18 was at about 3.7%.

Mobilization advance jumped to Rs 1434.5 crore (vs Rs 572 crore) was due to order accretion as well as commencement of construction in projects. Mobilization advance from client now are increasingly interest bearing unlike earlier interest free advance. Thus the interest cost on mobilization advance has increased to Rs 72 crore in FY18 from about Rs 63 crore in FY17. The retention money was at Rs 1834 crore (vs Rs 1630 crore).

In FY18 the company received claims against 2-3 NHAI projects aggregating to about Rs 75-76 crore in FY18. The claim received against one project was accounted in Q4FY18 and its impact at EBITDA level was Rs 21 crore.

International business – Currently only one project has to be completed and that too will be completed in another 6 months. Management is thinking of closing international business. Selling on international market or bringing to India. Whatever losses incurred in international operation were already provided for.

Dubai Real Estate – The company entered into a tripartite agreement with local developer under which he will give 165000 square feet of developed space in 2 years time. The company's exposure to this project is Rs 225 crore.

Board in principle agreed to issue convertible preferential warrant for an amount aggregating to Rs 110 crore to AVSR Holdings. The warrant is issued to promoters as they want to maintain the promoter shareholding at a level that was before the QIP issue. Due to QIP issue the promoter holding dipped by 1.5%.

Impairment of Rs 34 crore in standalone financials is towards HSPPL/Himachal Sorang project. After arbitration award the liability was assessed at Rs 65 crore and thus its investment has diminished and that was written off in FY18.

TACA India power arbitration – The company has so far provided for Rs 81 crore. The company feels there is no more provision is required as some of the liability/claims will be in its favour. Even if there is any liability in future the provision required for it will not be not be more than Rs 20-30 crore.

Debt at Consolidated books was Rs 1839.8 crore and at standalone level was Rs 1300 crore.

Other income for FY18 include Rs 88.1 crore of interest income from group companies, Rs 35.8 crore is Interest on IT refund, Rs 8.5 crore is interest on deposit.