Q4FY23 Concall Notes:
- Growth guidance is 18-20% for FY24 and FY25.
- Credit rating upgrade is expected by Q2FY24. The company was able to secure bank guarantees of Rs. 150 Cr from SBI during Q4FY23. Further, Rs. 250 Cr are expected before Q2FY24.
- Order book stands at Rs. 9513 crores till Q4FY23 (Public: 70%; Private: 30%). The guidance for FY24 is to maintain it at par with revenue guidance level atleast.
- Last year revenue was Rs. 1791 vs order book of Rs. 3400+ Cr.
- Working capital days to reduce by 20, bringing it down to 85 days(ex- retention money).
- Current asset turn is 4.23x. The expectation is to improve it to 4.75X during FY24.
- Around 150 Cr. of depreciation will be done in next 8 quarters besides the regular depreciation. It will come down to Rs. 50 Cr on annual basis, and will be comparable to the industry peers after 2 years.
- One time tax expense of Rs. 6.64 in Q4FY23, and it is non-recurring.
- Substantial settlements which have been written-off earlier are expected to be accrued to the bottom line in next 7-8 quarters.
- Enabling resolution has been taken for the QIB, and then it is upto the management to avail it or not. The decision will depend on the future growth prospects of the company.
I believe the bad times for Capacite are over and it will show good growth in the medium term.
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