Continuing the discussion from PSP Projects – Construction Company:
Order book as of December 5075 crores inflow during the past 9 months 1950
Now The company was recently awarded a project by Surat Municipal Corporation worth Rs.1,344.01 crore in January 2023, thereby taking outstanding order book to Rs.6,418 crore and order inflow as on FY23 to Rs.3,294 crore, surpassing order inflow guidance of Rs.2,500 crore according to the company.
During Q3FY23, revenue growth recorded was 2% YoY largely because of higher proportion of near completion projects during Q3FY2 As the company books profit when each stage of the project is completed this is possible
• Expects to compensate for any loss in revenue with a 20-25% growth in revenue next year, targeting Rs.2,700 crores
• Expects to maintain EBITDA margin of 11-13%
• The Surat Municipal project is expected to generate about Rs. 300 crores to Rs. 350 crores in revenue in the first year and the same for the remaining two years.
• The company is targeting about Rs. 100 crores each month from UP projects for Q4.
• The company’s CAPEX plan is expected to be within the range of 3% to 4% of revenue.
Promoters reply why execution is slow in this quarter
Patel-Shravan, you are absolutely right. The total revenue which everybody expected and even I expected is a little bit less than what we targeted and what we envisioned throughout the year. But the point here was little bit for the UP projects, now we are at the stage of finishing and MEP and each and everything has to be approved through PMC and again through the government. So, things are getting a little bit late at the approval level. But yes, you are absolutely right that we are falling short of about Rs.100 crores in this quarter and maybe Rs. 100 crores in the next quarter, but probably going ahead from here, now we have already started booking some of the revenues of MEP. Projects are in line except the hospital buildings which are a little bit late which will be completed next year. But major other projects are going on track. And now, we are also tracking a little bit more closely. So, I feel that we may fall short of about Rs.100 crores overall but let us still believe that probably we will be able to reach to Rs. 2,100 crores by this year. This quarter actually what I expected was about Rs. 600 crores and we have landed at Rs. 500 crores. So, I am still saying that maybe we may fall short of Rs.100 crores. Talking about next year revenue and compensating on what we have been doing today is yes, you are right that probably that can be considered that even if we fall short of Rs. 100 crores, then from Rs. 2,200 crores going for 20% or 25% growth, we should be able to in the position to go for Rs. 2,700 crores. so that this year’s revenue which we have made fall short of Rs. 100 crores can be compensated.
the company has a few disputes Bhiwandi project is in arbitration are the slow execution projects Bhiwandi and Pandharpur projects comprising 14% of the outstanding order book clarity from management is needed
2023-01-22T18:30:00Z UTC
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