- Revenue from Operations (Q3 FY24): INR481 crores (compared to INR443 crores in Q3 FY23).
- EBITDA (Q3 FY24): INR89 crores (compared to INR90 crores in Q3 FY23).
- EBITDA Margin (Q3 FY24): 18.5%.
- EBIT (Q3 FY24): INR63 crores (compared to INR56 crores in Q3 FY23).
- EBIT Margin (Q3 FY24): 13% (compared to 12.4% in Q3 FY23).
- PAT (Q3 FY24): INR30 crores (compared to INR23 crores in Q3 FY23).
- PAT Margin (Q3 FY24): 6.1% (compared to 5.1% in Q3 FY23).
- Revenue from Operations (9 months FY24): INR1,333 crores (compared to INR1,352 crores in 9 months FY23).
- EBITDA (9 months FY24): INR243 crores (compared to INR275 crores in 9 months FY23).
- EBITDA Margin (9 months FY24): 18% (compared to 20% in 9 months FY23).
- EBIT (9 months FY24): INR163 crores (compared to INR167 crores in 9 months FY23).
- EBIT Margin (9 months FY24): 11.4% (compared to 12.3% in 9 months FY23).
- PAT (9 months FY24): INR69 crores (compared to INR74 crores in 9 months FY23).
- PAT Margin (9 months FY24): 5.1% (compared to 5.4% in 9 months FY23).
- Gross Debt: INR345 crores.
- Gross Debt-to-Equity Ratio: 0.27.
- Net Debt: INR190 crores.
- Net Debt-to-Equity Ratio: 0.15 times.
- Working Capital Cycle (Q3 FY24): 123 days (compared to 152 days in Q2 FY24).
- Order Book: INR9,670 crores as of December 31, '23.
- Order Book Composition: 65% public sector, 35% private sector.
Release Date: February 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Capacit'e Infraprojects Ltd (BOM:540710, Financial) achieved its highest ever quarterly revenue and profit after tax in Q3 FY24.
- The company has a diverse order book from both public and private sector clients, indicating strong market demand.
- Equity infusion and additional non-fund based limits from banks have significantly improved liquidity.
- The working capital cycle improved to 123 days in Q3 FY24 from 152 days in Q2 FY24.
- The company is optimistic about sustained growth due to a strong order pipeline and execution capabilities.
Negative Points
- EBITDA for Q3 FY24 was slightly lower at INR89 crores compared to INR90 crores in Q3 FY23.
- EBITDA margin for 9 months FY24 decreased to 18% from 20% in 9 months FY23.
- PAT for 9 months FY24 stood at INR69 crores, down from INR74 crores in 9 months FY23.
- Gross debt stood at INR345 crores, with a gross debt-to-equity ratio of 0.27, indicating a significant debt load.
- The company has not yet fully recognized INR3,000 crores of MHADA projects, which could impact future revenue recognition.
Q & A Highlights
Q: Congratulations on delivering improved quarterly performance. Can you give some detail in terms of key orders which contributed to the quarterly revenue this quarter? Also, how is the billing happening for CIDCO, and what are the collection figures at present? Lastly, which key orders will contribute to next financial year's revenue?
A: Practically all ongoing projects have contributed this quarter. Project-wise details can be taken from our IR department. We see significant improvement in Q4 across projects, with CIDCO being the biggest contributor on a volume basis. MHADA has started contributing INR17-18 crores per month, Raymond INR22 crores, and M3M INR13-14 crores. We expect this to continue into Q4, which would again be the highest revenue-grossing quarter in the company's history. For CIDCO, we expect INR600-750 crores of revenue next financial year, with a monthly run rate reaching INR50 crores from April onwards.
Q: Can you provide a bifurcation of your order inflow in the 9-month FY24 in terms of the current quarter package Q3? What are you expecting as an order inflow in Q4?
A: We have a target of INR2,200 crores for the full year FY24 and are on track. We are L1 in one major project, which should complete our yearly target. In Q4, we expect two repeat orders from existing clients and one project from the public sector.
Q: Now that the funds are in place, how do you foresee the fourth quarter playing out? Is the 25% growth in FY25 contingent on any further fundraise?
A: The liquidity position is more than comfortable, and we have no plans for further equity raises. With the tie-up of INR225 crores from State Bank of India and additional limits from UBI and PNB, we are well-equipped to achieve our growth targets. We expect to start grossing INR200 crores of revenue from February onwards, aiming for INR600 crores in Q4.
Q: What is the expected run rate for CIDCO and MHADA projects in FY25?
A: For CIDCO, we expect INR600-750 crores in FY25. MHADA is currently at INR16 crores per month, with two more buildings starting soon. From July, we anticipate INR20 crores per month, increasing to INR25 crores per month from October onwards.
Q: What are the working capital limits post-QIP, and what are the plans for further tie-ups?
A: The total assessed limits, excluding CIDCO and MCGM, are INR113 crores. Fund-based limits are fully tied up, and out of the remaining INR400 crores gap, INR225 crores has been tied up from State Bank of India. The remaining INR175 crores will be tied up from Punjab National Bank and UBI by March.
Q: What is the bid pipeline size, and what are the major segments targeted?
A: Over the next five months, we will be bidding for projects worth INR29,000 crores in the public sector. The private sector will be on an invitation basis, likely resulting in repeat orders from existing clients. We see strong traction in commercial buildings, healthcare, and residential projects.
Q: How has the recent fundraise impacted execution levels, and what are the expectations for the next few quarters?
A: The first target is to achieve a run rate of INR200 crores per month, which we are hopeful of achieving from this month. With the fundraise and bank limits in place, we are well-equipped to achieve quarterly revenue of INR800 crores in the midterm. We are targeting 25% growth for the next financial year.
Q: What steps have been taken to improve execution on a quarterly basis?
A: We have ramped up execution significantly, as seen in the last quarter. With the QIP funds in place, we expect a serious ramp-up in Q4 and continued growth in the next financial year. We are committed to maintaining a 25% growth rate and will be responsible in choosing private sector clients.
Q: What is the status of the credit rating upgrade post-QIP?
A: The documents have been provided to the rating agencies, and they are on the job. We should hear from them very soon. The QIP raise is an additional bonus, and we expect interest cost savings from Q4 onwards.
Q: What is the current nine-month order book, and what do you expect for the full financial year?
A: We have received orders worth INR1,725 crores and expect to close the financial year with INR2,200 crores of additional orders.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
