Tantia Constructions to raise Rs 250cr via QIP

Q: How are you planning to deploy these funds once they come in and how much would you use for debt and how much for acquisitions?

A: Most of the funds from the equity raising will be either for entering into the build-operate-transfer (BOT) space pan-India or we will look into acquisitions outside the country. We also are looking into capital investment in the country.

Q: What is your orderbook at this point in time and can you give us some timeline like how much was it say in March? I want to know if QoQ you will be able to improve the orderbook or you think people are still dragging their feet on their projects?

A: We are adding about Rs 300-500 crore every quarter. So there is no dragging the feet or any slowdown in the order acquisition. My orderbook today is Rs 2,000 crore and growing.

Q: Which are your biggest and most profitable orders right now? You have done Rs 115 crore in this quarter - how much you can think you can notch up to in next couple of quarters?

A: As the industry goes, the last two-quarters of the year are always more profitable as well as of higher turnover because its not monsoon season at that time. We are looking at a target of an Rs 550 for this year. In terms of profitable segments, its primarily urban infra and railways which we are focusing on for higher revenue and higher EBITDA margins.

Q: You made loss in some quarters last year. What was the problem and are you firmly in the black now?

A: The loss was an aberration. It was due to high volatility in the resources - prices of steel and cement had gone up very high. Secondly, we had some derivatives options for hedging our foreign currency convertible bonds (FCCBs), which was an aberration, it was not in the cost of our business for which we faced loses. But after that we have grown every quarter in turnover, EBITDA as well as PAT. We are completely and truly in the black now.

Q: So will you be able to maintain your margins at 13.5% or do you see them higher?

A: Yes, that is, on the conservative side.