Speaking to CNBC-TV 18, Nalin Gupta, Managing Director of J Kumar Infraprojects says he anticipates the company's revenues to grow to Rs 1,700 crore this year.
J Kumar Infraprojects is targetting a 15-20 percent growth in revenues to Rs 1,700 crore this year, the company's Managing Director, Nalin Gupta told CNBC-TV18.
The current order book is worth Rs 4,200 crore for the company, he said.
Having quoted competitively, Gupta expects J Kumar to bag two of the seven packages for Mumbai metro (phase-III). On the company's capital raising plans, Gupta said those would depend on the size of the projects.
"If the orders are large we may go in for a blend of debt and capital market but on the upfront there are no immediate plans with the company to come to the capital market," he said.
The current debt-equity ratio of the company stands at 0.65, Gupta said.
Below is the edited transcript of Nalin Gupta's interview with Reema Tendulkar & Mangalam Maloo on CNBC-TV18.
Reema: How was FY15 for the company because the results indicate that there was a bit of a delay in execution. How is the situation on the ground now?
A: With regards to execution, the type of delays that happen in utilities or land acquisitions etc, is basically a routine thing but still the company had made a topline growth of close to around 15 percent in FY15 and this year also we hope to have around 15-20 percent growth in the topline of the company and the projects are running well smooth now and as most of the projects which were taken up two years back are now fully on the run and the show is going good. So, I do not see any major setbacks or delays in the ongoing projects.
Mangalam: You fell short of your FY15 guidance of revenues of about Rs 1,400 crore marginally and this miss has come largely on account of Q4. So in this context do you still guide for revenues of about Rs 1,700 crore in the next financial year?
A: This is the focus of the company and the anticipated figures look to be close to around Rs 1,700 crore; Rs 1600-1700 crore topline is what we are expecting and with the order book of Rs 4,200 crore that's there in the kitty of J Kumar, we expect that this should be a reasonable figure between Rs 1,600 and 1,700 crore should be there for FY16.
Reema: The big driver to the company\\'s financials over the next two-three years can be the orders that you might win from the Mumbai Metro phase three, as you have qualified for all the seven packages which this project is divided into. Two part question: is there a timeline on by when we are expecting these orders to trickle in and realistically out of the seven packages for which you qualified how many can the government award in FY16?
A: J Kumar is serious about Mumbai Metro and we have quoted competitively. So we have high hopes of bagging this order but with respect to your question of how many packages we would win. We have been prequalified for all the seven packages for bidding. However, there is a cap of maximum two packages that can be awarded to J Kumar.
Therefore, we have high hopes with regards to this but mentioning exactly like how many packages J Kumar would be L1, is difficult to say and as per the Sebi norms I am not suppose to speak much on that. However, I would say that J Kumar is serious about it and we expect Mumbai Metro to award all the seven packages by September 2015.
Mangalam: In that case if the company does go ahead and win some of these projects clubbed with a kind of pickup that you are seeing in National Highways Authority of India (NHAI) ordering as well. So would the company\\'s balance sheet have the bandwidth to support these projects or would you need to come to the capital markets to raise some money for anticipated equity requirements as well?
A: As of now J Kumar does not have any immediate plans to come to the capital market and in case J Kumar wins these packages of Mumbai Metro or any other larger orders, initially with the internal cash accruals of the company. J Kumar has a debt equity ratio of 0.65, so we are in a comfortable position to arrange for money with this debts. It depends on what size of projects J Kumar eventually wins and if the orders are large we may go in for a blend of debt and capital market but on the upfront there are no immediate plans with the company to come to the capital market.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.