New projects to add Rs 16-20cr to topline: Unity Infra

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New projects to add Rs 16-20cr to topline: Unity Infra

Madhan Nadkarni, CFO of Unity Infraprojects, tells CNBC-TV18 that the new orders worth Rs 140 crore will add Rs 16-20 crore to their topline this financial year.

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Unity Infraprojects yesterday announced that it bagged orders worth Rs 139 crore . Speaking to CNBC-TV18, chief financial officer, Madhan Nadkarni, said that they expect these projects to be completed within 18-24 months and add 16-20 crore to the company's topline this financial year.

Speaking about the orders bagged, Nadkarni said "One project is in Dwarka, Dehli to build an office building for NHAI. The other one is to build a corporate office and residential accommodation for ECGC in Andheri, Mumbai."

Nadkarni goes on to say that they are all set to achieve 20-25% growth in this fiscal. "We have an order book of almost Rs 3936 crore after adding these projects, so we hope to achieve that," he explained.

Below is an edited transcript of his interview with Reema Tendulkar and Ekta Batra. Also watch the accompanying video.

Q: It seems like you are on a slat of orders wins but just take us through this particular order win of around Rs 140 crore. When do you start executing and give us more details on this?

A: Out of this, one project is Dwarka in New Delhi for Rs 51 crore. It's an office building for NHAI and will be completed in 18 months. As far as the other project is concerned, it is for ECGC corporate office and residential accommodation at Andheri. It is worth Rs 88 crore and is to be completed in 24 months. We are starting both projects in next 5-6 days.

Q: Earlier you spoke about a 20-25% growth in FY12. Is that likely to happen? What's the current status with respect to that?

A: Yes definitely. In the first six months we already had a 12-13% growth and next six months are the best for construction industry. As far as this quarter is concerned, we are on a very good track. So we hope to have around 20-25% growth in this financial year. We have an order book of almost Rs 3936 crore after adding these projects, so we hope to achieve that.

Q: Give us a sense of how much you are bidding for going forward and what we could expect in the next couple of months in terms of a possible inflow of orders for you?

A: Rs 2700 crore bids are yet to be opened and on an average Rs 1500-1800 every month fresh bidding is going on. So we hope to meet our original target of Rs 4500-5000 crore fresh orders.

Q: Give us a quick sense on what the execution picture looks like once you do have these order inflows and when could we see some sort of contribution to the top line from these orders?

A: As far as these orders are concerned, they will be completed by around 18-24 months. So around Rs 16-20 crore topline in this financial year is visible. As far as overall execution is concerned, we are not facing any issues because there are no material constraints and labour constraints.

Q: Could you give us an update on what the debt on the books is and what the interest cost is likely to be in this quarter?

A: Around Rs 825 crore is debt on our books and we are finalizing this particular quarter should be approximately in the range of Rs 25-27 crore.

Q: Any plans to reduce this debt?

A: Yes definitely in the next quarter we should be in a position to reduce debt as I mentioned that there are few receivables and real estate entity which is coming in January and February. So hopefully we should be in a position to reduce debt levels.

Q: Give us a sense of what you could do on the margin front then?

A: We don't expect any decline in EBITDA margins. We hope to maintain EBITDA margin.