In an interview KK Mohanty, MD, Gammon Infrastructure, talked about the company's fourth quarter earnings and explained how the company's projects becoming operational will help it service its debts going forward.
In an interview with CNBC-TV18, KK Mohanty, MD of Gammon Infra said that the newly acquired projects can add Rs 175-200 crore to the company's revenue on an annual basis.
KK Mohanty, managing director, Gammon Infra says the company currently has a debt of Rs 4,000 crore. However, he hopes to be cash surplus post the 9 assets' stake sale to Brookfield.
The bank has lent close to Rs 2000 crore to the infra company.
Kishor Kumar Mohanty, Managing Director (MD) of Gammon Infra said the move is a positive one as it will help in reducing halted projects and add to revenue in long run.
Gammon Infra Managing Director KK Mohanty expects to get the capital from the deal in the next 30-45 days, adding that the company is currently awaiting shareholders approval for divesting the assets, he adds.
Speaking to CNBC-TV18, YD Murthy, Executive Vice President-Finance, NCC Limited says that he is confident of getting substantial orders for the smart city project and is looking forward to the new capital city of Amravati.
Speaking to CNBC-TV18, Kishor Kumar Mohanty, MD, Gammon Infrastructure says the company benefited from fall in interest costs due to repayment of IDFC loan.
The traffic growth of Indira Container terminal is likely to be around 15 percent, said KK Mohanty, MD, Gammon Infrastructure.
KK Mohanty, MD of Gammon Infrastructure said 50 percent of the company's total debt is in operational projects. However, servicing the same is not a big challenge.
Kishor Kumar Mohanty, MD of Gammon infrastructure, discusses company's earnings for the fourth quarter and its future outlook.
In an interview with CNBC-TV18‘s Ekta Batra and Anuj Singhal, KK Mohanty, Managing Director, Gammon Infrastructure, discussed state of the infrastructure sector and the company‘s own projects.
In the December quarter, Gammon Infra received arrears worth Rs 35 crore on account of a project, says MD Kishor Kumar Mohanty
Discussing the details of the deal, Kishor Kumar Mohanty, MD, Gammon Infrastructure, said it makes an investment sense for both parties as Sadbhav was a minority stakeholder.
MD KK Mohanty said the cost of funds is a critical aspect to make industry globally competitive. The company is on the verge of completing three projects and has operational assets worth Rs 2,500 crore.
KK Mohanty believes the scheme will be more effective at lower interest rates.
The company's net sales were up 11 percent at Rs 173.5 crore against Rs 155.3 crore.
Because of the negative economic environment, it will be difficult for banks to fund the large ticket infrastructure projects.
Gammon Infra feels that the infrastructure sector may see no recovery till 2014 polls as there will be political indecisions and lack of stability. The PPP projects may also see a rise in debts in case banks decided to pass on rate hikes to the customers.
In an interview to CNBC-TV18, Kishor Kumar Mohanty, MD, Gammon Infrastructure projects speaks about the Land Acquisition Bill and why it needs to be implemented properly.
For doing Rs 1,000 crore revenues in FY14, Gammon Infra has to do around Rs 250 crore revenues each quarter, which seems challenging with big ticket orders being hard to come by and those in kitty should be completed on time.
Parag Parikh, ED & CFO of Gammon Infra believes that the new exit norms are a welcome move by CCEA. He told CNBC-TV18 that it is not a solution for projects, which are not viable fundamentally. However, substitution is open for all viable commissioned projects, he added.
While commenting on the future of his company, KK Mohanty of Gammon Infrastructure said, "We are intending to put three more projects into operation. We will be completing Godavari Bridge, Patna-Hajipur Highway and one of the power project or port projects". These projects will be completed from quarter three onwards.
Gammon Infrastructure Projects has received financial closures for five road projects spread across different states. The company received a total grant of over Rs 1,000 crore for these projects.
Parag Parikh ED & CFO, Gammon Infrastructure Projects, says that the company has posted cash profit of Rs 122 crore for nine months in FY13.