CEMPRONSENovember 10, 2022

Cemindia Projects Limited

5,490words
70turns
6analyst exchanges
2executives
Management on call
Prasad Patwardhan
CFO
Anshuman Ashit
ICICI SECURITIES
Key numbers — 40 extracted
INR 1,035 crore
year ending September '22. During this quarter, we have reported total operating income of about INR 1,035 crore. This represents a 28% growth on a Y-o-Y basis. PAT has come in at about INR 20 crore, which is, a
28%
this quarter, we have reported total operating income of about INR 1,035 crore. This represents a 28% growth on a Y-o-Y basis. PAT has come in at about INR 20 crore, which is, again, a 33% growth as c
INR 20 crore
of about INR 1,035 crore. This represents a 28% growth on a Y-o-Y basis. PAT has come in at about INR 20 crore, which is, again, a 33% growth as compared to last year. On a six- monthly basis, our total operati
33%
epresents a 28% growth on a Y-o-Y basis. PAT has come in at about INR 20 crore, which is, again, a 33% growth as compared to last year. On a six- monthly basis, our total operating income is INR 2,130 c
INR 2,130 crore
gain, a 33% growth as compared to last year. On a six- monthly basis, our total operating income is INR 2,130 crore, which is, again represents a 30% growth year-on-year. PAT has come in at about INR 50 crore for
30%
a six- monthly basis, our total operating income is INR 2,130 crore, which is, again represents a 30% growth year-on-year. PAT has come in at about INR 50 crore for six months as compared to INR 33 cr
INR 50 crore
is INR 2,130 crore, which is, again represents a 30% growth year-on-year. PAT has come in at about INR 50 crore for six months as compared to INR 33 crore one year ago. Our debt-to-equity ratio continues to b
INR 33 crore
nts a 30% growth year-on-year. PAT has come in at about INR 50 crore for six months as compared to INR 33 crore one year ago. Our debt-to-equity ratio continues to be in a pretty healthy state. We have not let
INR 21,000 crore
ad has told,. We have secured some jobs during this quarter. So today, our work in hand is around INR 21,000 crore plus. I would like to highlight a few projects of your interest, and then I'll pick up your ques
2%
questions. Like the Chennai Metro, two underground jobs we have started. We had hardly make around 2% progress. But once the procurement of the TBM, the procurement of the trenching machines are all i
38%
pleted in tunnel part, finishing what is going on. Bengaluru Metro, we have done and a progress of 38% so far. Job on hand increased a little bit. So if we consider the increased job, the progress is
35%
r. Job on hand increased a little bit. So if we consider the increased job, the progress is around 35%. Marine job coming from Udangudi, almost 75% progress we have done. Apart from that, there are few
Advertisement
Guidance — 20 items
Prasad Patwardhan
qa
“And is this is the trajectory which expect in H2 or do you think there will be some improvement?”
Prasad Patwardhan
qa
“And the kind of revenue you expect in H2, can you just throw some color?”
Prasad Patwardhan
qa
“This is especially true in respect of the Mumbai Metro project when the project is coming to an end, and we expect to complete the project in a year or so.”
Mohit Kumar
qa
“Well, if you look at the top line, the Mumbai Metro project would have contributed about INR60 crore to our top line in this quarter had we taken that into account for the recording purpose.”
Mohit Kumar
qa
“And the margin that we are recognizing on this project on a pretax basis is about INR36 crore, so nearly 60% margin.”
Mohit Kumar
qa
“But because of certain thresholds and since the project is nearing completion, there is some release of margin which was held back earlier and getting released in this quarter.”
Jayanta Basu
qa
“So if we have achieved some milestone in this quarter and we are releasing some of the margins in this quarter, the reporting of numbers will be, to some extent, lumpy.”
Jayanta Basu
qa
“If we are seeing something getting reported in the previous quarter, it is not necessary that the similar thing will be seen in the current quarters.”
Jayanta Basu
qa
“In the past also, we have said this that during the course of this year as well, input cost, we see a moderation in the input cost, steel, cement, etc , we hope to see an improvement in the margin going forward.”
Jayanta Basu
qa
“And we continue to stick to that view, and we expect to see improvement in the margins, say, from Q4 onwards.”
Risks & concerns — 1 flagged
So that was the question, why this is -- why there was a decline in the EBITDA margin of the other projects.
— Mohit Kumar
Advertisement
Q&A — 6 exchanges
Q
So two questions. One is, sir, while, of course, the revenue has been pretty good for the quarter, but the margins, I see the gross margin declined by 5% and your EBITDA margin, again, declined by 3% Q-o-Q. So what explains this? And is this is the trajectory which expect in H2 or do you think there will be some improvement? And the kind of revenue you expect in H2, can you just throw some color? Thank you, Mohit, for your question. To begin with, I would like to clarify that the results that we are reporting and the format in which we are reporting the results, that is a standardized format a
Mohit Kumar
Is it possible to share our share of revenue from associate and the EBITDA number? Well, if you look at the top line, the Mumbai Metro project would have contributed about INR60 crore to our top line in this quarter had we taken that into account for the recording purpose. And the margin that we are recognizing on this project on a pretax basis is about INR36 crore, so nearly 60% margin. This is not really reflective of the performance in this quarter. But because of certain thresholds and since the project is nearing completion, there is some release of margin which was held back earlier and
Q
Few questions from my side. First of all, we said the work in hand is around roughly INR 21,000 odd crore. And we see, if I look at the order book, the June order book was standing at INR20,400 crore, let’s convert it to INR20,500 crore. Now what is the order inflow we are seeing? And how is the traction going ahead specifically for the road construction segment? I understand about the project we have been going on. But I just wanted to know the order inflow from the railroad construction, and specifically, how order inflow has been going ahead now? Okay. Road, as you know, that we secured one
Pujan Shah
Okay. So what's the total order inflow for this quarter will be? This quarter, the order inflow has been about INR 1,000 crore. But overall, Q2 FY22, our order inflow to-date has been about INR 8,000 crore. And in addition to that, we are lowest on orders worth about INR2,500 crore. And that may come this quarter. That is likely to materialize and be awarded to us during this quarter, that is, Q3 FY23. Okay. And sir, my second question would be on our revenue guidance. So in a previous con call, we have said that we have decided around INR 1,500 crore per quarter. And now we are easing up to 2
Q
Sir, my question is regarding margins because one of our peers have recently reported their results and they are consistently reporting EBITDA margins of 14%, 15% and we are at 8%. So there is a huge gap between our peers and our margin. So what is the reason why we are taking such low-margin jobs? Actually, Prasad has explained a little bit. But even if you consider that around 8.8% is the margin or 9- point-something if you calculate in a different way. But basically, we have to consider that whatever job even we are executing now, it has got the legacy of a few bad jobs, and we are not draw
Jayanta Basu
So first, I'll answer your first query that if you see our results three years back, it used to be around 14% of EBITDA. Correct, Prasad? Yes. November 10, 2022 ITD Cementation India Limited Even it is more than 14% EBITDA. Recent past, we secured two jobs, which has not given us margin. In fact, we have lost a lot of money there, and the effect is going on now. But that definitely, it will not continue more than before beyond this year, as I have said before. So next year, should we see normalized margin? Yes, yes. The next question is from the line of Pushkar Jain from Joindre Capital. Congr
Q
Sir, firstly, congratulations on the robust order book, continued order book wins in this quarter. Sir, my question was regarding the Bengaluru Metro project. So what is the kind of contribution that we have achieved in this quarter?
Jayanta Basu
Bengaluru, we have underground and elevated, both. So you're asking which one? Sir, for both of them, what was the revenue and the margins that we have made during this quarter for the Bengaluru Metro projects, both ones? Yes, the revenue contribution has been in the range of INR 60-odd crore. And in this quarter, we have booked some losses on this project of around INR25 crore. That is for the elevated. That is for the elevated metro. The underground metro project is performing very well. It is doing about INR30 crore a month of turnover. And in terms of the margin profile as well, it is doin
Q
Just wanted to check, you talked about this INR 200 crore of revenue this year, which probably has not reached the threshold level of recognizing the margins. Can you elaborate a little more on that?
Jayanta Basu
Okay. As a policy, unless we have 10% progress, we don't recognize the margin on that project. So if you consider jobs we just recently secured, one job at Delhi, Kasturba Nagar and then CMRL, Chennai Metro two jobs and one marine job, those we have done work revenue wise will be around INR200 crore plus. But we have not recognized any margin on them because it is less than 10%. Sir, if I were to adjust this, I mean, if I would account for the fact that this INR200 crore of revenue has not attracted any margins, then your actual margin turns out to be closer to about 10.5%, a little more than
Q
Congratulations on the robust order book that we have. Sir, I have one question on the Ganga Expressway. So last time, you had said that we were awaiting the financial closure on the project for Adani to happen. After that, we'll start the execution of the project. So has that happened? Just checking that.
Jayanta Basu
Yes, that has happened. So you started the construction of the road. And sir, what is the time line of this? Time line is 27 months, and third of November is the zero date. 3rd of November is the zero date.
Speaking time
Prasad Patwardhan
18
Jayanta Basu
15
Moderator
9
Bajrang Kumar Bafna
5
Abhay Lodha
5
Mohit Kumar
3
Nikhil Kanodia
3
Anshuman Ashit
3
Pujan Shah
2
Vipul Shah
2
Advertisement
Opening remarks
Prasad Patwardhan
need assistance during the conference call, please signal an operator by pressing ‘*’, then ‘0’ on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anshuman Ashit from ICICI Securities. Thank you, and over to you, sir. Thank you, Neerav. On behalf of ICICI Securities, I would like to welcome you all to the Q2 FY '23 post results conference call of ITD Cementation India Limited. Today, we are pleased to host their Management / Senior Management, which is represented by Mr. Jayanta Basu, Managing Director and Mr. Prasad Patwardhan, CFO. The meeting will start with a brief by Mr. Patwardhan and Mr. Basu, after which we will open the lines for the Q&A session. Thank you, and over to you, sir. Thank you. Good afternoon, everyone. This is Prasad Patwardhan, and I would like to thank you for joining us in this Q2 FY '23 earnings con call. I will start with a brief on our financial performance for the quarter and half year ending S
Jayanta Basu
Well, thank you, all, for joining this con call. This is Jayanta Basu. Good afternoon to all of you. We are able to maintain the same revenue tempo what we had in the first quarter, very close to first quarter, falling slightly with the first quarter and balance, Prasad has told,. We have secured some jobs during this quarter. So today, our work in hand is around INR 21,000 crore plus. I would like to highlight a few projects of your interest, and then I'll pick up your questions. Like the Chennai Metro, two underground jobs we have started. We had hardly make around 2% progress. But once the procurement of the TBM, the procurement of the trenching machines are all in place. So now, hopefully, from May onwards, we'll be able to start the tunneling work on Chennai metro. Even in Mumbai Metro as well, all the work has been mostly completed in tunnel part, finishing what is going on. Bengaluru Metro, we have done and a progress of 38% so far. Job on hand increased a little bit. So if we c
Advertisement
← All transcriptsCEMPRO stock page →