Per concall, they said this was because of 1 time expense on UP project of c.5 Cr. UP project is expected to end next quarter and they do not foresee incurring this again. Overall margin guidance is at 11-12% in FY24 and going forward.
Another reason for dip is interest which is attributable to Surat diamond dispute receivable + UP receivable. If Surat diamond does not reconcile by March 24, then arbitration is reqd which might take an year. To curtail high interest cost, Co has passed QIP resolution recently. If its gets resolved, they expect to get debt to normal levels. Capex guidance stays at 4% of revenue. Precast facility is currently operating at 50% utilization though at a lower margins [EBITDA positive] which they expect would ramp if opportunity strikes (i.e; if someone is willing to pay a premium for early completion).
No provisions are made in books for Surat diamond dispute. Monitorable on bad debts.
Rev guidance for FY25 is 3000 Cr with margins of 11-12%. Mgmt did say in EPC project 1-1.5% fluctuations are normal.
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