Current project traffic to grow 10-12% in FY12: IL&FS Trans

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Current project traffic to grow 10-12% in FY12: IL&FS Trans

Mukund Sapre, executive director, IL&FS Transportation told CNBC-TV18 that maximum contribution to the company's revenues in the third quarter came from its construction vertical.

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Mukund Sapre, executive director, IL&FS Transportation told CNBC-TV18 that maximum contribution to the company's revenues in the third quarter came from its construction vertical.

"On a quarter-to--quarter basis, we have around 74% rise in the revenue. The maximum contribution has come out of the construction happening at sites or through development, he said.

The company expects to see 10-12% traffic growth in its current projects in FY12.  "Three of my projects have shown 15-20% growth as of now. So, taking the average because in February-March the traffic goes down, we should see a 10-15% rise on the traffic on various operating project, "he added.

Sapre further informed that the company expects many new project bids to take place in March .

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

Q: If you can take us through the numbers this time around and explain to us the margin picture and what are you expecting from it going forward?

A:On a quarter-to--quarter basis we have around 74% rise in the revenue, which is at around Rs 1,268 crore. EBITDA margins are around 28% which is around Rs 350 crore, 47% more than on a QoQ basis. All the revenues have been through the various projects which are under construction. So, the maximum contribution has come out of the construction happening at sites or throught development.

Q: Your net profit from the quarter ago levels has fallen, you did about Rs 116 crore in September 30 quarter. You have done Rs 87-88 crore this time around. Any reason why the profit fell QoQ?

A: The revenue mix for us is dependent on which component revenue is coming from. Most of the revenues have come out from construction, that's the reason that you will find that numbers are little bit lesser than earlier quarter.

Q: But construction activity in Q3 wasn't good? Is that what you are saying?

A: I am saying in terms of EBITDA margins, we have differential of EBITDA margins on various activities. We have PDF, supervision fees and construction development contracts. Also, the contribution of construction is more in this quarter.

Q: What is the blended margin? I think year ago you all did 30%?

A: As far as EBITDA levels in terms of blended margins is concerned, we should be touching around 30-35%, this time its around 28%.

Q: If you can throw some light on the traffic growth, what's its been like this quarter and what are you expecting?

A: We keep monitoring traffic regularly on all our projects. Everybody is talking of things not happening, but good thing we have observed is most of the projects have shown a very good traffic rise.

I would say that we can hope that this year we shall be touching around 10-12% of traffic growth happening on almost on all operating projects of ours.