Om Infra Limited Q3 & 9 MFY24 Earnings Conference Call
Revenue and Profitability
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Om Infra Limited reported its highest-ever revenue of Rs 818 crores in the 9 months ended December 31, 2023, an 81% year-on-year increase.
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Profitability improved with an EBITDA margin of 7.8% and a net profit margin of 5.3% for the 9-month period.
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The engineering segment maintained robust execution, while the real estate segment witnessed a pickup in sales, leading to overall revenue growth.
Order Book and Project Potential
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The outstanding order book remains strong at Rs 2,500 crores, providing revenue visibility for the next 2-3 years.
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The order book is well-diversified with a mix of hydro and water projects, Jal Jeevan Mission projects, and pumped storage projects.
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The company sees substantial potential in India’s hydro and water sector, particularly in hydropower and water supply projects.
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Om Infra aims to secure a significant market share in hydro mechanical equipment and generate steady revenue through project operation and maintenance.
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Growth prospects are enhanced by the emergence of pump storage projects, interlinking projects, and Jal Jeevan Mission projects.
Project Updates
NTPC Tapovan Vishnugad Hydroelectric Project
- NTPC paid 65% of the total claim amount (Rs 46 Crores) under the Vivaad Se Vishwas Scheme in December 2023.
Bhilwara Jaipur Toll Road Project
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Arbitration award reinstated after PWD government of Rajasthan’s appeal was dismissed by the commercial court.
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PWD government of Rajasthan has the option to appeal against the decision in the high court of Rajasthan.
MHADA Bandra Project in Mumbai
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Arbitration award partially in favor of the consortium.
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FSI enhancements and some reliefs granted, but additional rates applicable on BFSI enhanced FSI.
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Operationalization of the award subject to further legal proceedings by MHADA.
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Consortium has appealed against the arbitration award seeking additional relief.
Financial Highlights for Q3 FY24
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Revenue growth of 24% YoY to Rs. 245 Crores in the engineering segment and 140% YoY to Rs. 27 Crores in the real estate segment.
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Unbilled revenue considered for items with billing within 1 month after the end of the quarter.
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Income recognized from receipt of arbitration award under Vivaad Se Vishwas Scheme.
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Non-current liability reduced from Rs. 96 Crores in March 2021 to Rs. 62 Crores in September 2023.
Revenue and Expense Mismatch Clarification
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Change in revenue booking policy: unbilled revenue recognized only if billing is certain within one month.
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Rs. 25 Crores of unbilled revenue not recognized in Q3 due to uncertainty of billing in January.
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Expenses incurred for the work related to the unbilled revenue.
Sale of Land and Advances to Subsidiaries
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Land sold for Rs. 16 Crores in Gujarat Silo SPV, amount lying in that company.
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Rs. 25.93 Crores advances given to subsidiaries, Rs. 16 Crores already realized and will be paid to the main company soon.
Other Income Clarification
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Rs. 19 Crores of other income is interest income from the Vivaad Se Vishwas Scheme.
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Main supply income from the scheme classified under main income/turnover.
Pallacia Project Sales Update
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60% of units sold as of December 2023.
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Out of 152 units, 3,49,000 have been sold, with 2,96,000 remaining.
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Revenue of Rs. 300 Crores expected from remaining units.
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Rs. 313 Crores already realized from sold units.
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Total cash flow realization of Rs. 370 Crores expected in the next 2-3 years.
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Realization delayed due to stamp duty issues and people waiting to register units in their names.
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Expected revenue from Pallacia by the end of the financial year: Rs. 35-40 Crores.
Pumped Hydro Projects
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Current project: Kundah pump storage project in Tamil Nadu worth Rs. 150 Crores.
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Potential for adding 25,000 megawatts through pumped storage projects in India.
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Bidding process for these projects is slow due to DPR preparation, approvals, and financial closures.
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Some projects expected to come up for bidding in the next 6-12 months.
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Om Infra’s share in these projects could be limited to hydro-mechanical equipment (
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