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Net sales for Dec 18 quarter stood at Rs 86.58 crore down by 20%. OPM was however lower by 170 bps to 10.4% resulting in OP fall of 31% to Rs 8.99 crore. Other income was down by 42% to Rs 0.18 crore. Interest cost was higher by 12% to Rs 8.37 crore and depreciation was higher by 8% to Rs 1.11 crore. After providing total tax of Rs 0.66 crore, PAT for Dec 18 quarter stood at Rs 0.35 crore down by 90% YoY.
For the 9 months ended Dec 18, net sales were up by 11% to Rs 298.67 crore. OPM was down by 310 bps to 9.9% resulting in a 15% fall in the OP to Rs 29.69 crore. Other income was up by more than 944% to Rs 4.28 crore. Interest cost and depreciation cost stood at Rs 21.64 crore up by 4% on YoY basis and Rs 3.18 crore up by 1% respectively. Thus PBT stood at Rs 9.15 crore down by 22% YoY. After providing total tax of Rs 3.23 crore, PAT for 9 months ended Dec 18 stood at Rs 5.92 crore down by 18%.
Order Book
The company received new order in water sector worth Rs. 153 Crore from the West Bengal PHED which is funded by the Asian Development Bank. This is in addition to the order received from the same State from the WBSEDCL in the electrical sector worth Rs. 105.5 Crore. With these new orders, the Company has a robust order backlog (unexecuted portion of all orders) of around Rs. 2089 Crore.
It is pertinent to note that all the orders are either funded by Central Government of India, Multilateral Funding Agencies (ADB/WB/EIB/EXIM/AfDB/etc.) and State Government. There are no orders with the Private Sector. All ongoing jobs are by and large are progressively moving at a decent pace.
Outlook on Fresh Business: In addition to the recent orders, the Company is expecting one new order (L1 Position) of approx. Rs. 300 Crore which is for an Overseas Project in the Water Sector.
Management Commentary:
The Operational results for the Quarter were below management expectations. The dip in Q3FY19 Revenue was primarily on account of cash flow mismatch due to delay in pickup of revenues from new orders from RUDIP Hanumangarh and JKPDD Srinagar coupled with some delays in inflows from running projects including PGCIL, Rwanda and Uganda. The new projects have now started to pick up pace and at the same time, inflows from running projects have also started rolling in, albeit slowly. The Company is putting its best efforts and is confident of improving its cash flow leading to stable growth in Revenue over the next few Quarters. Given the healthy order book and L1 position, the medium to long-term prospects remain good. Meanwhile the Company continues to seek additional working capital through its bankers as well as through various other means of finance to fund its growth. The established track record of Management and diversified project portfolio (sectorial and geographical) has always been the key strength of the company.
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