Current order book at Rs 3,800cr, says Unity Infra

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Current order book at Rs 3,800cr, says Unity Infra

In an interview to CNBC-TV18, Madhav Nadkarni, chief financial officer of Unity Infra Projects spoke about the latest happenings in his company and the road ahead.

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In an interview to CNBC-TV18, Madhav Nadkarni, chief financial officer of Unity Infra Projects spoke about the latest happenings in his company and the road ahead.

Below is the edited transcript of the interview. Also watch the accompanying video.

Q: Last time you indicated that you were L1 bidder for orders which were worth about Rs 1500 crore and you were expecting to receive the Letter of Intent (LoI) from the government. Has there been a significant slowdown in the allotment by the government?

A: Yes. In fact almost two and half months back the decisions of the tenders were open and we were L1 bidder for two major projects amounting to Rs 1100 crore. And we are waiting. Normally, the central government issues LoI within one and half-two months. But because of the present situation and environment it is taking substantial time.

Q: Give us a sense of your current order book which you are executing and what is the on ground reality? What challenges are you facing in terms of execution?

A: At present, order book is almost Rs 3800 crore, 54% is coming from the building segment and 30% from water and balance from transportation.

 As far as challenges are concerned, execution is fine but getting certification from government delays the process. Previously when you used to submit the bill, you'd get certified copies in a month's time. However, now everybody is a bit skeptical.

Q: You spoke about some delay by the government in allotting orders. Are you expecting any weakness or any slowdown from the government with respect to opening up of future bids or any kind of projects?

A: There are opportunities in pipeline. But unfortunately, there is no rollout of plan coming out in a big way, maybe because of election process in Mumbai Municipal Corporation or in few states, going forward. But we hope this rollout process will materialise faster. There is a real slowdown everywhere.

Q: You also have real estate which you could possibly look to monetize. Are you looking at that more aggressively? What are your plans with regards to the real estate to balance out what you are seeing on the infra space?

A: We are pursuing real estate development as far as Bangalore project is concerned. All approvals should be in place in the next few days and we are trying to launch Bangalore project in first quarter of the next calendar year. So we are focusing on that and we will utilise our man and machinery more effectively in those projects as there are delays in getting the orders.