Conference Call Details
• Date: June 3, 2024
• Time: 4:00 PM IST
• Compliance: SEBI Listing Regulations
• Contact: Signed by Neha Matnani, Company Secretary
Company Performance Highlights
• IPO Success: Raised 88 times the desired amount.
• Management Insights:
• Managing Director Manohar Lal Punglia emphasized extensive experience in infrastructure.
• Confidence in growth due to upcoming government initiatives.
• Revenue Breakdown:
• Water supply projects: 78%
• Roads: 12%
• Railways: 7%
• Financial Growth:
• Q4 FY24 revenue growth: 44%
• Net profit increase: 68%
• Completed projects worth Rs. 2,488 crores in FY24.
• Current order book: Rs. 4,717 crores.
Q&A Session Highlights
• Order Inflow Expectations:
• Ongoing bidding process complicates projections.
• Historical bidding success ratio: 17%.
• Anticipated margins: 13% to 14%.
• Debtor Days:
• Increased to 150 days due to election delays; expected normalization.
• Funding Sources:
• Mix of central and state government funding.
• Revenue Growth Target:
• Aiming for 15% to 20% growth based on current order book.
Strategic Insights
• Project Management:
• Advances for projects are typically interest-free.
• Positive operating cash flow expected as working capital issues resolve.
• Tender Process:
• Typically takes 1 to 2 months for outcomes.
• Delays expected due to Achaar Sahita period.
• Sales Growth Target:
• Historic sales growth rate of around 26% for FY25.
• Order book target: three times turnover.
• Debt Management:
• Conservative approach with a debt-to-equity ratio below one.
Competitive Landscape
• Market Competitors: Major competitors include L&T and NCC.
• Project Sizes: Comparable in Rajasthan and Uttar Pradesh, ranging from Rs. 100 crores to Rs. 1,000 crores.
Additional Insights
• Operating Margins: Aim to maintain margins between 13% to 14%.
• Future Contracts: Continuous bidding for contracts under Jal Jeevan Mission.
• Project Execution Concerns: No significant impact from elections; labor schedules managed to mitigate heat-related issues.
Conclusion
• The management expressed readiness for projected turnover without significant additional capital expenditure, emphasizing due diligence in procurement decisions. Further inquiries were invited at the end of the call.