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PNC Infratech hosted a conference call on Aug 17, 2017. In the conference call the company was represented by Yogesh Kumar Jain, MD and Chakresh Kumar Jain, MD & CFO.
Key takeaways of the conference call
Order book as end of June 30, 2017 was Rs 5065 crore. The order book does not include the bid project cost of the recently won 3 HAM projects amounting Rs 4154 crore. The EPC portion of this 3 HAM projects is expected to be about Rs 3600 crore.
Expect a revenue growth of 25-30% for FY18 and EBITDA margin of 13-13.5%. The revenue for FY19 is expected to grow by 20-25%.
Capex Rs 120 crore. Incurred a capex of Rs 23 crore in Q1FY18 and capex planned for FY18 full year was Rs 120 crore.
BOT portfolio of the company comprises 4 Toll road project, 2 annuity road project, 4 HAM project and 1 OMT project. Of the total 11 BOT projects 7 are fully operational and 1 is under construction and balance three are in advance state of FC. The company has invested about Rs 463 crore of equity in 7 operational BOT projects. The four HAM projects require equity infusion over next 3 years. About Rs 400 crore will be infused in FY18, FY19 and FY20. Currently executing 17 road project on EPC basis
The 4 HAM project won by the company are two laning of Dausa-Lalsot-Kauthun in Rajasthan with a bid project cost of Rs 881 crore, the six laning , 6 laning of Chitradurga Davanagere with a bid cost value of Rs 1434 crore, four laning of Jhansi Khajuraho Package I in UP&MP for a bid cost of Rs 1410 crore and Jhansi Khajuraho Package II in UP&MP for a bid cost of Rs 1310 crore.
Construction already commenced in case of Dausa-Kauthun HAM project. Of the EPC order size of Rs 745 crore for Dausa-Lalsot-Khauthun HAM project the company has executed work to the tune of Rs 90 crore.
The company is currently working on FC for balance 3 HAM projects and this will be done well within the stipulated 150 days. The company expects FC for all 3 HAM projects by Sep 2017.
Bidding is expected in next 2 months for HAM projects worth about Rs 3900 crore and two EPC project with a total value of about Rs 1500 crore.
The company has PQ for bidding orders worth Rs 17000 crore in Nagpur Mumbai Expressway, for which the tendering is expected next quarter.
Government of India target to complete about 15000 km of highway projects in FY18 a level as same as that of FY17. GOI also looks at completion of PMGSY/village road of 57000 km in FY18 with a target construction of 156 km per day compared to 130 km per day in FY17.
Rajasthan HAM project: FC was done with a debt portion of Rs 379 crore, equity of Rs 66 crore and NHAI grant of Rs 384 crore.
Chitradurga –Davanagere HAM project currently land is available for 53 km out of total 73 km. Land acquisition is pending only for Chitradurga Bye pass and the company expects 80% of land will be made available by November 2017. Current land availability for Jhansi-Khajuraho Package I is about 50% and the company expects 80% land availability by 15th of November 2017. In case of Jhansi-Khajuraho Package 2 the company expects 80% land availability by October 2017.
The company is looking to close the fiscal with an order book of about Rs 12000 crore.
Work on Lucknow airport is going on and unexecuted order book of this project is about Rs 137 crore. Similarly the unexecuted order book of Etah-Kasganj is Rs 226 crore and Agra Firozabad was Rs 53 crore.
Unexecuted order book in case of Nagina Kashipur was Rs 1156 crore, Varanasi-Gorakpur was RS 810 crore, Dausa Lalsot was Rs 655 crore, Aligarh-Moradabad was Rs 531 crore, Bhojpur Buxar was Rs 577 crore and Koilwar-Bhojpur was Rs 453 crore.
Q1FY18 sales include an amount of Rs 5.2 crore booked towards price variation clause in one project which was to the approved by the client. If that was excluded the margin will be marginally lower than reported.
Standalone debt as end of June 30, 2017 was Rs 170 debt and this include equipment financing of about Rs 91 crore. The company has applied for mobilization advance for Bihar projects and one other project. The company is eligible for 10% of mobilization advance in ham project. The company may end FY18 with a debt level of about Rs 150-200 crore including equipment financing.
Currently not pursuing any opportunity in Railway segment.
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