Company Overview
• Established in 1961, transitioned from manufacturing insulators to infrastructure and IT/ITES-enabled services.
Key Highlights from the Conference Call
• Executives Present: K.V. Prakash (Whole-Time Director), B. Swaminathan (CFO).
• Successful Year: Discussion on ongoing projects and future plans.
Major Projects and Developments
• Porur Property Development:
• Advanced discussions for 1 million sq. ft. IT-ITES space.
• Expected rental yields: Rs. 80-90 per sq. ft.
• Upcoming Infrastructure Projects:
• Anticipated worth: Rs. 400-500 crores.
• Current order book: Rs. 284 crores.
• Existing projects include stormwater drains and a bus terminus.
• Kancheepuram Land:
• Significant land bank of 254 acres with pre-approved development potential.
• Investment model could be asset-light or asset-heavy.
Financial Insights
• Revenue Potential:
• Logistics park in Sriperumbudur could generate Rs. 10 crores/month.
• Construction costs for warehousing: Rs. 1,800 per sq. ft.
• Expected profit margins: 7-8%.
• Order Book and Execution:
• Current order book confirmed at Rs. 284 crores.
• Anticipated additional orders worth Rs. 400-500 crores in the next quarter.
Management and Strategy
• Working Capital Management:
• No bank limits; improved turnover and profitability.
• Promoters to infuse funds as needed.
• Future Plans:
• Plans to start paying dividends in 2025 (30-40% of profits).
• Projections of Rs. 200-300 crore revenue for FY24, increasing in FY25.
Challenges and Considerations
• Rising Construction Costs: Impacting profitability but optimistic about future growth.
• Initial Project Costs: Significant upfront expenditures expected in the first two quarters.
Conclusion
• The call concluded with gratitude expressed by CFO B. Swaminathan to investors, highlighting the company's optimistic outlook and strategic focus on infrastructure development.