Aim to grow 20-25% in FY17 on back of current orderbook: PNC

PNC Infra is expecting an EBITDA margin of 13-14 percent from a new Rs 868 crore UP highway project that it has bagged, says the company MD Yogesh Jain.

In an interview with CNBC-TV18, he said that the company expects to growth by 20-25 percent in FY17 on the back of its current orderbook which stands at Rs 4600 crore after acquiring the new project.

Read more: PNC Infratech bags EPC project worth Rs 868crBelow is the verbatim transcript of Yogesh Jain’s interview with Reema Tendulkar and Nigel D’Souza on CNBC-TV18. Reema: First some details about this order win. Rs 868 crore, what will be the margins, the timeline of execution and what does this order take your order book to? A: This is a project which is four laning of Varanasi-Gorakhpur section of NH29. This is NHAI project in Uttar Pradesh on EPC mode. The project cost is Rs 868 crore so we are expecting margin from this project is around 13-14 percent EBITDA margin. Nigel: What about the timelines, how fast do you have to complete this project and what does it take your total order book to? A: The project is to be completed within 30 months. Letter of intent (LOI) is expected before end of this financial year. With this project our total order book is now in terms of contract pending execution is now over Rs 4,600 crore which includes three projects where we are L1. Reema: What is the size of the three projects where you are currently L1? A: First project is Varanasi- Gorakhpur, that is the Rs 868 crore and one is Sharda Sahayak Feeder Canal highway project that is cost around Rs 293 crore. Third one is Aligarh-Moradabad that is costing around Rs 644 crore. So, we are expecting LOI from these three projects in this month. Nigel: You were targeting a growth of around 25 percent for FY17. Any change for that or are you sticking with that guidance? A: Same, we are expecting growth around 20-25 percent in both standalone and consolidated revenues. Reema: You indicated that your total order book stands at Rs 4,600 crore which includes three L1 projects which are roughly totaling to Rs 1,800 crore that is on the order book. Could you tell us how the order inflows have been say since the start of the year? In Q4 your January to March quarter what has been the total order inflows that you have actually won and has it improved? A: We can say we have secured six new projects in this financial year, current financial year. Our total project value is Rs 2,800 crore. Nigel: Your Rae Bareli-Jaunpur is in advanced stage of construction. It is expected to be commissioned in the next few weeks so we have been hearing about this for sometime so could you give us some update when exactly will this be commissioned? A: This project is almost, we have completed and now we are waiting for commissioning. It will be commissioned within 15 days. Nigel: What can we expect post the commissioning of this particular project? A: We have completed this project almost three months before. So, we are expecting three months bonus in this project. Nigel: Revenue, can you give us some numbers about revenues? A: This is a annuity project so around Rs 68 crore is annuity, six months annuity is there.