Key take-aways of the call

Consolidated income of Rs 854.113 crore for Q2FY19 comprises income from operational SPV of Rs 295.992 crore; under construction SPVs Rs 555.726 crore and Standalone income of Rs 94.41 crore.

Traffic volumes continue to grow in Q2FY19 at a healthy rate. The company expects the momentum in traffic volumes to continue.

Higher traffic as well as substantial toll rate hike in MBCPNL the cash profits has increased by 53.06% in Q2FY19 as compared to Q2FY18.

Revenue of operational SPV for current fiscal is expected to be Rs 1200 crore. Revenue growth of 11-12% is expected for operational SPV for next fiscal.

Expected strong traffic momentum in H2FY19 is to boost cash profits from operational SPVs. Cash profit margin in Q2FY19 for operational SPVs stood at 86.4% in Q2FY19.

SIPL standalone has a current order book of Rs 660 crore towards routine maintenance of 12 HAM projects which is to be executed over a period of next 24 months. Of which Bijapur- Hungund and Hyderabd-Yadgiri, which will commence from current quarter is about Rs 84-85 crore and Rs 35 crore respectively. Cash flow from these two projects will start from current quarter.

Orders under pipeline – Around 37 projects are under pipeline by NHAI as per the listing in the NHAI website. Some of the project may be converted and awarded as EPC project instead of HAM to accelerate completion. So order awarding will all definitely happen by Q4FY19.

NHAI is keen on giving appointed date on 80% of un-encumbered land in possession so appointed date may shift one or two quarters.

The company expects the appointed date for Jodhpur RR project in a week's time and that for Bhimasar-Bhuj is in December.

As far as 3 HAM projects out of total 12 HAM project for which FC is pending to be completed the company has written to NHAI and expect to file the documents for two projects by November and for another by December.

The company has achieved financial closure for 8 HAM projects under 9.5% interest rate. However, interest rate has increased by about 25-50 bps in recent FC with liquidity issues in the system due to recent NBFC crisis.

As far as monetization of operating assets, the company is on continuous look out and is very active and things should happen at appropriate time.

Rohtak-Panipat – Currently the actual traffic is still lower than expected. However, expect the traffic to improve here-on, as court order is strictly implemented.

Bijapur-Hungund - The traffic is hit due to ongoing construction work in nearby stretches and the traffic is expected to come back once construction is completed in nearby stretches.

Only Bhimasar-Bhuj HAM project is funded through NBFC and all other three are by banks.

Expect to bag another two HAM projects with a project bid value of about Rs 2000-2500 crore for current fiscal.