Key takeaways of the conference call

Order backlog is 4333.4 crore as end of Dec 2010 and the company has bagged orders worth Rs 821.4 crore in January 2011 thus taking the overall order backlog to about Rs 5100 crore as of now. The company is L1 for orders worth Rs 1000 crore for TN government housing project.

Order booking in 9MFY11 was about Rs 1113.48 crore of which about 692.98 crore is commercial, 140.2 crore is infrastructure, Rs 226 crore is industrial and balance Rs 54.3 crore is residential. For the quarter the order inflow is Rs 311.7 crore of which the commercial is about Rs 167 crore.

Expects to close the fiscal with a order backlog of around Rs 5500 crore.

Signs of revival emerges in industrial and the downside growth concern receded. The enquires are coming from Auto, Tyres, breweries etc. While there is no fresh investment intentions announced in cement and steel sector the already announced is on.

The delay in achieving financial closure and obtaining approvals affects the execution of infra projects. However the rebound of IT/ITES sector augurs well for the company as it is one of its strong area for the company. On Hydrocarbon segment, the company has also bagged order from Nagarjuna Oil and the strong capex pipeline of CPCL also encouraging.

The company expects to close the fiscal with a sales turnover of Rs 2100-2150 crore. Expects a minimum growth of 15% next fiscal.

The company 's EBITDA margin consistently between 8.5-9.5% and it will be maintained.

Capex for current fiscal will be to a maximum of about Rs 35-40 crore. The company has spent about Rs Rs 30 crore and another 8-10 crore will be spent in Q4FY11. Next year capex is worked out.

Given the strong growth in affordable housing the company is to invest in low cost construction technologies. And in this regard it has to invest about Rs 30-40 crore. This capex in this regard to happen in next fiscal.

Out of infra project order book about 60% already has FC and balance 40% does not have financial closure

Solar power project - Alternate energy is going to be the future and the company wants to build capability. It has large land bank in Tuticorin, one of the places with best radiation suitable for solar power generation, so it got one project for 5 MW and has signed PPA with NTPC Vidyut Vyapar for reasonably good price. The Outlay is going to be Rs 60 crore of which about Rs 45 crore will be debt. The debt will be in the B/S of subsidiary unit. The project ROE will be 15%. The company have principal approval from 2 banks and one the equipment supply is identified the FC will be completed. Target to complete the project by Jan 2012. Guarantee given to NTPC by CCCL is Rs 7 crore. Rs 13/Kwh is the tariff quoted.

Chennai Airport – There were impediments 2 months ago and that has been cleared. And the project is on fast track. The work on domestic terminal will be completed by October 2011. Entire order by Dec 2011. The company has completed work about Rs 542.79 crore so far and balance Rs 600 crore will be completed in next 10 months. The company has booked about Rs 266.89 crore in 9MFY11 and about Rs 149 crore in Q3FY11.

The company has completed about 189.6 crore as far as the other Chennai Airpot project i.e. Adyar Bridge project. The company has booked about Rs 140.52 crore in 9MFY11.

Total investment in CCCL Infra by the company is Rs 22 crore.

Power sector - The company has bagged two orders one from Meenakshi Power and another from Ind bharat (@ Tuticorin). If it completes one of these private projects the company can target government orders directly.

Car parking project - The concession agreement yet to be signed and expect that to be signed this month.

Roads – CCCL Infras to take up road development projects. The company has prequalified for about 8 projects and out of that it will bid for 3-4 projects. The company has to bid as part of consortium for projects above Rs 1000 crore to PQ.

Working capital increased by 130 crore. Does not anticipate working capital to be better this quarter as the clients look for delaying payment as being year end.

Debt will be in the similar level for current fiscal and the borrowing will go up in next fiscal as it has couple of investment to make towards car parking project in Delhi, Solar power plant and low cost construction technology.