Expect nearly 13.5% margins on new orders: Unity Infra

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Expect nearly 13.5% margins on new orders: Unity Infra

"Building contributes around 61% to our order book, 23% comes from water and balance from transportation," he elaborated.

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Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ News and Notices about Unity Infraproj See interviews with Unity Infraproj Management See what other Experts & Brokerages are saying about Unity Infraproj See previous Results of Unity Infraproj

Infra player, Unity Infra Projects has bagged an new worth Rs 414 crore from HSCC.

"In the building segment, to get Rs 400 crore and above order takes us into a different league altogether," Madhav Nadkarni, chief financial officer of Unity Infra told CNBC-TV18. 

The company's total order book stands at Rs 4,420 crore. "Building contributes around 61% to our order book, 23% comes from water and balance from transportation," he elaborated.

Nadkarni expects to achieve around 13.5% margins on the new orders.

Below is the edited transcript of Nadkarni's interview with CNBC-TV18. Also watch the accompanying video.

Q: Can you take us through the details of this order and what does it take your order book to?

A: This is a very important order for us. It is Rs 414 crore Lady Hardinge Hospital in Delhi from HSCC. In building segment, to get Rs 400 crore and above order takes us into a different league altogether because there were only three players who were shortlisted.

Another order is worth Rs 71 crore auditorium at Pusa in Delhi. So this order book comes to around Rs 4,420 crore and building contributes around 61% to our order book, 23% comes from water and balance from transportation.

Q: What are the margins in this particular order?

A: At EBITDA level around 13-13.5% should be achieved in earnings.

Q: What's happening with the real estate part of the business?

A: We are looking out for our equity stake in some SPVs of real estate at Nagpur and Bangalore. We are launching in Bangalore in this quarter, so talks are going on for joint development.

Q: What we could expect in terms of guidance from the company going forward because you showed a 10-12% growth in the previous quarter. What are we scaling it up to then?

A: Initially, we are targeting 20-25% in this financial year and going forward around 30% for next financial year. For this particular order also we were L1 for last six-six and a half months, but process at government level has been substantially delayed.

Another L1 position of around Rs 600 crore is awaited from last six months. In this financial year we should have around 18-20% of growth. We hope to maintain that next year also because these big ticket size orders will contribute in next financial year in a bigger way.