Transcript Availability
• Transcript of the Analyst Meet is available on the company's website.
• Discussed audited financial results for the quarter and year ended March 31, 2024.
Financial Performance
• Overall revenue remained flat; EPC segment saw a 9% year-on-year increase.
• Strong order book of Rs. 3,365 Crores, mainly from government projects.
• New sales bookings in real estate: 1,08,578 sq. ft. generating Rs 100 Crores.
• GMP business revenue increased by 15%.
• Net debt rose to Rs 86 Crores; credit rating upgraded to CRISIL BBB+.
• Q4 FY24 financial results:
• Standalone income: Rs 241 Crores
• Consolidated income: Rs 350 Crores
• Net profits: Rs 15 Crores (standalone), Rs 17 Crores (consolidated).
Profitability Concerns
• Decline in profitability despite revenue growth in GMP due to fluctuating commodity prices.
• EBITDA decreased from Rs 25 Crores to Rs 21 Crores.
• Acknowledgment of inflation and labor costs as potential project delays, but government projects have escalation clauses.
Project Selection Strategy
• Focus on projects with shorter completion timelines, particularly government hospital projects.
• Desire to diversify into private projects, especially in healthcare, IT, and data centers.
Real Estate Sector Insights
• Missed opportunities in real estate due to insufficient inventory; only 110,000 sq. ft. sold last year.
• Current capacity at 90% with a goal of reaching 8 million sq. ft. through Rs 20 Crores CAPEX.
• Order backlog of Rs 3,500 Crores; target to reduce to Rs 2,500 Crores and secure Rs 1,500 Crores in new orders by April 2025.
Upcoming Projects
• Updates on five planned project launches; three redevelopment projects nearing approval.
• Baner project in Pune may launch by year-end.
• All projects will require capital, with alternative funding plans in place.
Commercial Project Insights
• Tower of Future project costs will be shared at the company level, with expected gross margins of 30-35%.
Market Outlook
• Anticipated decline in real estate revenue due to lack of project completions, but improvements expected in FY24 and FY25.
• Post-election uptick in tendering activity, especially in Maharashtra.
• Focus on Mumbai, Coimbatore, and Pune for real estate expansion; cautious about entering Delhi NCR.
Promoter Ownership and Growth Outlook
• Promoter ownership differs from peers; does not significantly impact operations.
• No slow-moving projects in the EPC portfolio.
• Optimism for growth in both EPC and real estate sectors in the upcoming year.