Key takeaways of the call

EPC Order Book at the end of Q2FY19 stands at approximately Rs 13200 crore, including Rs 12600 crore of construction order book.  Of the total order book ongoing BOT project is Rs 5057.9 crore and BOT/HAM project for which construction yet to commence are Rs 8161 crore.

Q2FY19 was all about strengthening the base as well as setting the platform for the following eight quarters.

All three HAM projects bagged have successfully achieved Financial Closures at Bid Project Cost despite a weak lending environment. The coming quarters will be more robust as the company will be commencing the construction activity on all three HAM projects.

Financial Closure for Hapur Moradabad BOT Project is underway.

Sindhudurg Airport construction is completed and trial run is on. The airport will commence operation by end of this fiscal.

Key projects have witnessed significant improvement in toll collection, which includes Kaithal-Rajasthan project

Mumbra bypass has been opened for traffic towards end of September 2018, accordingly coming quarters will see bounce back in traffic for MIPL.  

The construction also progressing well, even in monsoon quarter – we are set to fire on all engines.

Expecting good flow of bidding of TOT and HAM Projects over the next two quarters. Bulking up of bidding/awarding is not new and this was the trend in last few years and second half especially Q4FY19 could see strong order finalisation.  NHAI has lined up bids for project worth Rs 70000 crore, which will get awarded before model code of conduct comes into effect.

Expect to achieve the order inflow guidance of Rs 7000-8000 crore for FY19 if the bidding and awarding happens as expected/planned.

OI break up for Q2FY19 was Rs 26 crore is for Construction and Rs 27 crore for Toll.

HAM projects expected to give an margin of 17-18% and typical margin in BOT project is 25-27%.

Currently, six projects are under Construction Phase. Yedeshi Aurangabad and Karwar – Kundapur Project are at advance stage of construction.

IRB will participate in projects worth of Rs 1.5 trillion in next 4 to 5 years floated under PPP and ToT segments within Bharatmala Pariyojana.

Estimated equity commitment in FY19 will be Rs 857.6 crore, FY20 will be Rs 1337.4 crore and FY21 will be Rs 491.9 crore.

Agra-Etawah Project - Effective 20th Jan 2018, Agra Lucknow Expressway has started tolling at concessionary rate of 75% and because of the same witnessing some bit of traffic diversion. Toll revenue has been affected due to temporary impact of low tariff implemented on Lucknow Expressway and ongoing construction works on new 20km bypass stretch and few flyovers at busy junctions along Agra-Etawah project resulting in blocking vehicle movement significantly. All this will get streamlined as construction progresses, allowing smooth traffic movement.