Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- G R Infraprojects Ltd (BOM:543317, Financial) has a strong track record of delivering excellent projects with a focus on quality and governance.
- The company has improved its debt-equity ratio to 0.10, which is one of the best in the sector.
- The order book stands robust at INR 26,680 crores, providing a solid pipeline for future projects.
- The company has commenced development activity in the power transmission service segment, indicating diversification.
- G R Infraprojects Ltd is targeting a significant order pipeline of INR 1,50,000 crores in various sectors, showing confidence in future growth.
Negative Points
- Revenue from operations decreased significantly from INR 1,574 crores to INR 1,128 crores year-over-year due to heavy rainfall and lesser executable order books.
- EBITDA margin declined from 12.1% to 10% compared to the previous year, indicating reduced profitability.
- The company expects a 5% to 10% degrowth in the current financial year due to execution challenges.
- Working capital days increased by 41 days, indicating inefficiencies in managing receivables and inventory.
- The company faces delays in receiving appointed dates for several projects, impacting execution timelines.
Q & A Highlights
Q: Can you provide an update on the revenue guidance for FY 2025 and expectations for FY 2026?
A: (CFO) For the current financial year, we expect a 5% to 10% decline in revenue. However, for FY 2026, we anticipate returning to a growth trajectory with double-digit growth, contingent on securing new projects and the competitive landscape.
Q: How much order inflow has been received so far, and what is the target for the rest of the year?
A: (CFO) We have received orders worth INR 5,000 crores so far, including an EPC project in Maharashtra. Our target for the year is INR 20,000 crores, with INR 15,000 crores expected in the remaining months.
Q: What is the outlook on margins given the current low levels?
A: (CFO) The current low margins are due to underutilization of capacity. We expect margins to improve to 14-15% once we secure more projects and fully utilize our capacity. For the remainder of this year, margins are expected to be around 12-13%.
Q: Can you elaborate on the working capital situation and its future outlook?
A: (CFO) Excluding the impact of SPVs, our working capital has improved. We aim to maintain debt levels and reduce interest costs. The focus is on efficient capital management to support business operations.
Q: What is the status of the appointed dates for pending projects?
A: (CFO) We expect appointed dates for three projects in the next one to two months and for the remaining two projects by the last quarter of the financial year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
