5 projects start generating revenues in FY13: Gammon Infra

4985 Investors following Gammon Infra. Share this News with them.

0

Like this story, share it with millions of investors on M3

5 projects start generating revenues in FY13: Gammon Infra

Five of our assets, four of road and one of port, will start generating revenues over the next five quarters, says Parag Parikh, chief financial officer of Gammon Infrastructure.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Gammon Infra See previous management interviews See what other Experts & Brokerages are saying about Gammon Infra Gammon Infra BSE | NSE 31/05/12 Are Mutual Funds betting on Gammon Infra?

Five of our assets, four of road and one of port, will start generating revenues over the next five quarters, says Parag Parikh, chief financial officer of Gammon Infrastructure . These include the Kosi bridge project, the Gorakhpur Annuity Bypass, the annuity project of Patna-Muzzaffarpur, a bridge across the Godavari river in Rajahmundry as well as the container port in Mumbai. "In the following financial year, we would see all of these projects having full annualized revenue," said Parikh, adding that these projects will help the company with internal accruals as well as refinancing.

He goes on to say that activity in the infrastructure space will pick up and that things seem to be on the mend.

Below is an edited transcript of his interview with Latha Venkatesh and Gautam Broker. Also watch the accompanying video.

Q: Interest rates have begun to peak out and things seems to be in on the mend at least in the equity market, so do you think we are going to see an improvement from here on or doest it still look like its bleak?

A: Activity has picked up over the last few months, it is just that it has been a little cyclical. There have been few opportunities that have been coming up for bidding and then there was again a lull over the later part of the last month. We are expecting again a few opportunities coming up for bidding in Q4.

One has seen a see-saw of opportunities and there have been times when many opportunities have got bundled up together. For us as well we have been able to take advantage of a few of them and there once again comes a lull period in between.

Q: We understand that good bit of your projects will get into BOT and start generating revenues in FY13. Can you give us an idea of how many projects will get completed in the fiscal year?

A: Yes we are in a unique position and it is probably a very good time for us where we have five assets, four of road and one of port, getting commissioned over the next five quarters. We have the Kosi Bridge which is estimated to be completing by the end of this financial year; we have the Gorakhpur Annuity Bypass which we are attempting to finish by June. These two are annuity projects followed by a third annuity project of Patna- Muzzaffarpur, which is scheduled to complete by 2013.

Besides these three annuity jobs, we have a toll bridge across the Godavari river in Rajahmundry as well as the container port that we are constructing in the backyard of Mumbai, both being completed at the end of Q3 of the next financial year. So it is going to be pretty interesting and good times for us where all these projects will start generating revenues over the next financial year. In the following financial year, we would see all of these projects having full annualized revenue.

Q: Once your rights issue is completed, do you think your equity raising for FY13 would be in place?

A: Yes that is right. Today when you look at GIPLs balance sheet, it has debt of over Rs 180 crore as of March 31 last year; it has not significantly grown over the current period. The rights issue enables us to retire this debt which is there standing on our books. Also, with the five projects coming up for commissioning, it gives us the ability to generate revenues, internal accruals as well as potentially look at refinancing.