| – | They use a cluster based approach. Privatization of MSW management industry is a very huge potential to tap into. |
|---|---|
| – | Continue to focus on bidding projects in new states in clusters to increase profitability and efficiency. |
| – | Experience, credentials & financial strength makes us eligible to bid for most projects in MSW sector. |
| – | EBITDA reduced due to higher provisions. |
| – | Cost of borrowings reduced from 12.4% in March, 2020 to 9.7% in Dec, 2022. |
| – | C&T volumes have remained flattish. There are 16 ongoing projects. The Nashik C&T project started operations in Dec, 2022, revenues of which will be recognized from Q4 FY23. |
| – | MSW processing tonnage saw an uptick of 7%. Waste to Energy plant at Pimpri-Chinchwad will start operation in Q1 FY24. |
| – | The company under the guidance of its Board has initiated a process of creating a receivable reserve to reflect the nature of our business, which is aimed at providing comfort to the balance sheet and some cushion thereof. We have initiated disposal by creating a reserve of INR 14.2 crores in the quarter. As we go along, we hope to refine this receivable reserve calculation based on historical track record of managing receivables and adopting a credit default strategy in this limited space. These are expected to be realized in a forthcoming time. |
| – | New segment entered: collection, transportation, processing and disposal of construction and demolition waste in Mumbai City of 600 tons per day. This 20-year construction contract with BMC is worth INR 1,024 crores, that’s little over INR 1,000 crores over the 20-year of commissioning period. This is just the tipping fees. Processing of this waste and then sale of the same will generate more revenue. They are assuming that selling of processed waste will given additional 10% revenue of tipping fees. |
| – | Due to the high calorific value of our RDF, demands have been strong, resulting in record RDF sales of over 15,000 tons during the quarter. This trend is looking up based on the response we’re getting from our clients. |
| – | Vehicle scarppage facility will be announced mostly by end of 2023 and revenue generation will start in FY25. |
| – | They were expecting margins to normalize to 25-26% by Q4 FY23 or Q1FY24. This quarter margins have reduced due to provisions. Let’s see if they can manage the same. |
| Subscribe To Our Free Newsletter |
