GPTINFRANSEQ4 FY2022May 19, 2022

GPT Infraprojects Limited

4,348words
58turns
7analyst exchanges
1executives
Management on call
Atul Tantia
EXECUTIVE DIRECTOR & CFO, GPT INFRAPROJECTS
Key numbers — 40 extracted
Rs. 1.5
g performance and the board of directors have recommended to the shareholders a final dividend of Rs. 1.5 per share which taken along with the interim dividend announced in February of this year, works ou
Rs. 3
e which taken along with the interim dividend announced in February of this year, works out to be Rs. 3 per at the full year 2022, which is one of the highest ever dividend that we have declared. Now
Rs. 669 crore
ur financial performance during the full year ended FY2022. Our revenue from operation came in at Rs. 669 crores as against Rs. 573 crores for the previous year which is the growth of almost 17% year-on-year.
Rs. 573 crore
uring the full year ended FY2022. Our revenue from operation came in at Rs. 669 crores as against Rs. 573 crores for the previous year which is the growth of almost 17% year-on-year. This was backed by a sig
17%
n at Rs. 669 crores as against Rs. 573 crores for the previous year which is the growth of almost 17% year-on-year. This was backed by a significant execution in the infrastructure segment. The sta
Rs. 88 crore
ificant execution in the infrastructure segment. The standalone EBITDA for the full year stood at Rs. 88 crores as against Rs. 85 crores in FY2021. The EBITDA margins remains stable at 13.2% despite the headw
Rs. 85 crore
infrastructure segment. The standalone EBITDA for the full year stood at Rs. 88 crores as against Rs. 85 crores in FY2021. The EBITDA margins remains stable at 13.2% despite the headwinds in raw material pr
13.2%
r stood at Rs. 88 crores as against Rs. 85 crores in FY2021. The EBITDA margins remains stable at 13.2% despite the headwinds in raw material prices and the EBITDA has been north of the 13% hurdle rate
13%
stable at 13.2% despite the headwinds in raw material prices and the EBITDA has been north of the 13% hurdle rate that we have set historically for ourselves. For the past year, the company has not o
20.2%
insured that its cash management improves and as a result, we are happy to report a much stronger 20.2% year-on-year growth in the PAT at Rs. 24.7 crores in FY2022 as against Rs. 20.6 crores in FY2021.
Rs. 24.7 crore
s and as a result, we are happy to report a much stronger 20.2% year-on-year growth in the PAT at Rs. 24.7 crores in FY2022 as against Rs. 20.6 crores in FY2021. Some of the key steps that have helped profitabi
Rs. 20.6 crore
port a much stronger 20.2% year-on-year growth in the PAT at Rs. 24.7 crores in FY2022 as against Rs. 20.6 crores in FY2021. Some of the key steps that have helped profitability were as follows: We
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Guidance — 20 items
Coming to the segmental performance
opening
“With normalcy retuning in the next couple of months, we expect the business to ramp up to the levels of previous year in the coming quarters.”
Coming to the segmental performance
opening
“The execution of Ghazipur order is running smoothly and we expect the same to be completed by 2023.”
Coming to the segmental performance
opening
“Similarly, Mathura-Jhansi is also running very smoothly, and we expect the same to be completed in the next calendar year.”
Coming to the segmental performance
opening
“The operations have already started and given our past experience in constructing similar cable-stayed bridge in Burdwan, we expect the work to pickup soon.”
Coming to the segmental performance
opening
“In the concrete sleeper segment the GMR contract continues to progress well, and we expect the contract to complete over the next six months and our receivables to significantly reduce, which will also contribute to reduction in the working capital cycle.”
Coming to the segmental performance
opening
“With the budget having a strong focus on public capital expenditure especially towards our sector of operation and normalcy returning, we are confident enough to scale up our business going forward.”
Coming to the segmental performance
opening
“We are continuously exploring new opportunities and expect to get projects keeping in mind the management disciplines of healthy margins in the range of 13-14%.”
Atul Tantia
qa
“We expect to have a better strike rate in FY2023, because FY2022, due to COVID, the central government had relaxed the earnest money criteria for most of the tenders and they have withdrawn the relaxation of earnest money as it had led to unhealthy bidding discipline.”
Atul Tantia
qa
“So, we expect the tendering part to do much better this year.”
Atul Tantia
qa
“In terms of target to get new orders, obviously, we expect to maintain the 2.5x times FY2023 revenue when we close FY2023.”
Risks & concerns — 1 flagged
It might a one month or two months drag on the indices when they are published.
— Atul Tantia
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Q&A — 7 exchanges
Q
Sir, my first question, this is a critical year for the two big projects, RVNL projects that we are concluding, I think both projects put together should probably contribute Rs. 150-200 crores to the revenue. Once that is done, you have addressed some big projects coming up in the pipeline too. But if you could help us in terms of what is the near-term prospects of orders that you could win because last year, I understand that we had dip in terms of order inflow in comparison to what we did in FY2021, is there any thought given on what should be the order intake in this year, how is the execut
Atul Tantia
Our order book, like I said in my opening remarks is at Rs. 1,684 crores. The two contract that you mentioned Ghazipur, and Mathura-Jhansi contributed in FY2022 at Rs. 210 crores to be precise in terms of their contribution to the revenue of Rs. 670 crores. The unexecuted portion for those two contracts are part of Rs. 1,684 crores, obviously last year there was a dip in terms of the new order inflows from Rs. 932 crores in FY2021 to Rs. 531 crores in FY2022, a Rs. 400 crores dip. We expect to have a better strike rate in FY2023, because FY2022, due to COVID, the central government had relaxed
Q
Sir, my first question is on the revenue guidelines for the FY2023 and the EBITDA margin, I joined the call late, so sorry I am repeating that.
Atul Tantia
In terms of revenue guidance, we expect a revenue growth of almost 15-20% CAGR over the next three years and EBITDA margin would be, we have always maintained our EBITDA hurdle rate of 13%, so it will be north of 13% in terms of EBITDA. So, you think this EBITDA margin for this quarter was at blip and that will get back to 13%. If you heard the previous call the person who asked the question from Antique, Mr. Rohit. I think that across the industry this quarter due to the commodity price there has been a dip in the margins because the RBI indices do not immediately translate in terms of the ac
Q
I just wanted to know in the presentation you mentioned debt reductions and a reduction in booking capital debts. If there would not be any further improvement in this and what would be the targets you think?
Atul Tantia
Last year, we have done a debt reduction of Rs. 10 crores and that is FY2022 and this year the target is reduce debt by almost Rs. 15 crores.
Q
So, your press release talks about setting up of a subsidiary in Ghana, so can you please elaborate on like what is this for and give some more details about this?
Atul Tantia
Along the lines of South Africa and Namibia, the company is exploring to setup a concrete sleeper plant in Ghana and that is why the press release mentions that the board has approved the formation of a subsidiary in Ghana to set up a concrete sleeper plant. We are on the verge of finalizing the contract in Ghana, once that is finalized then we will obviously inform the stock exchanges and the public at large in terms of once the subsidiary is able to get the contract and that would entail setting up for concrete sleeper plant in Ghana on a single like we have done in South Africa and Namibia.
Q
Sir, I have couple of question, one mainly on the business model particularly on the infra side, are we working something on this bullet train project or something like that as well apart from the Bharatmala and PMGSY scheme?
Atul Tantia
We are not having contract for the bullet train, primarily L&T has most of those contracts. We are doing our contracts for DFCC, we are doing metro contracts but not on the bullet train. Okay, but is there any opportunity for us to do something? We have bid for one or two contracts we have not been successful, but we have bid for one or two bridges contract there but not been successful. Okay on the sleeper segment side is it very competitive among the peers as such. Is there any opportunity for us to improve upon the margins in that way? So. the sleeper actually how the margin is getting repo
Q
We have noticed in this particular month there was a huge volume in public market got traded substantially had volume, any new strategic partners have come in that you are aware of it?
Atul Tantia
I am saying that there is no strategic partner that is coming into the business. The promoter is continuing to hold 75% shareholding and if the trading volumes increase or decrease depends on the market how they see the sector and the company as such. No not at all, this is pretty unusual and very high almost 2-3% of the data backing the capital in few days, if not strategic any large investor that something you are aware of it. There is no large investor that has come in, it is well diversified holding that is why no large investors that is there.
Q
Thank you moderator once again. So, thank you everyone for participating in our Q4 FY2022 Earning Conference Call and the for the full year end of March 31, 2022. In case if you have any further question, you may get in touch with IR teams Stellar Relations or appreciate to get in touch with us directly. I hope you all are staying safe. Thank you and have a good day.
Management
Speaking time
Atul Tantia
24
Moderator
9
Mohit Kumar
7
Kalpesh Parikh
6
Rohit Natarajan
5
Sandeep Shah
2
Coming to the segmental performance
1
Atul Tanita
1
Vinita Pandya
1
Sadanand Shetty
1
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Opening remarks
Atul Tantia
Good morning, everyone and a warm welcome to GPT Infraprojects Limited Q4 and full year ended March 31st, 2022, Earning Conference Call. The Result Presentation along with our Press Release has already been uploaded on our website and that of the stock exchanges as well. We hope that you have had a chance to go through the same over the weekend. Today on the call, we also with us Stellar IR, our Investor Relation Advisors. At the onset, we are extremely happy to announce that the fourth quarter of fiscal 2022, has been one of the strongest quarters in the history of the company on back of strong execution, healthy cash flow due to realization of old receivables from customers leading to improvement in return ratios. We have always rewarded our shareholders on the back of strong performance and the board of directors have recommended to the shareholders a final dividend of Rs. 1.5 per share which taken along with the interim dividend announced in February of this year, works out to be R
Coming to the segmental performance
Our infrastructure segment displayed strong execution prowess for the full year 2022. During FY2022, the infrastructure segment witnessed a growth of 19.4% year-on-year to Rs. 573 crores. In the Q4 FY2022, the segments saw a growth of almost 29% year- on-year to Rs. 273 crores which was backed by a strong pick up in execution activities. The segment continues to be a major part of the business contributing almost 85% of the entire revenues in FY2022 and 95% of the EBIT for the year. The order book for the segment stood at Rs. 1,549 crores. Now coming to the sleeper segment. Revenues for the segment came in at for Rs. 28 crores for Q4 FY2022 and Rs. 101 crores for the full year FY2022. The muted performance of this segment can be attributed to the COVID related disruption in the South African business which has also resulted an impact on the margins as well. With normalcy retuning in the next couple of months, we expect the business to ramp up to the levels of previous year in the comin
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