Highway oders to give equity returns of 15-16%: PNC Infra

PNC Infratech has been declared L1 (lowest bidder) for orders worth Rs 881 crore for laning of National Highway in Rajasthan. The order is under a hybrid annuity model, said Yogesh Jain, MD of the company. The execution time is expected to be 6 months and equity return to be around 15-16 percent.  After bagging this order, the company aims to grow at 20 percent in FY17, he added. The current orderbook for the company is Rs 5,200 crore and order worth Rs 3,700 crore is also expected this fiscal.  "We expect our total orderbook to be Rs 8,000 crore by FY17-end," he added. Below is the transcript of Yogesh Jain’s interview to Reema Tendulkar and Ekta Batra on CNBC-TV18.Reema: If you could tell us what does this mean for the company’s financials?A: We are declared lowest bidder in this hybrid model package in the Rajasthan state. It is Dausa-Lalsot-Kauthun highway which is part of NH-11A. The project cost is around Rs 881 crore.Ekta: When does project execution begin and what are the margins?A: Execution will begin within six months because this is a hybrid model package because the financial closure will take around five months. The margin is around, equity return will be 15-16 percent. Reema: How much will you accrue in terms of revenue in FY18 on account of this win?A: From this package, we are expecting growth around 20 percent in this financial year.Reema: Is that not lower than 25 percent that you had told us? The last time we spoke, you had guided for a 25 percent revenue growth. Now, you are saying a 20 percent revenue growth?A: We are expecting 20 percent minimum side.Ekta: So, the range is 20-25 percent. What is the incremental order flow that we can expect for the company in the second half?A: We have already submitted three hybrid model package. Two are in Punjab, that is Kharar-Ludhiana and Rupnagar-Phagwara and one in Gujarat, this is on NH-8 in Gujarat State. So, we are expecting one or two hybrid model package in the next quarter.Ekta: And the quantum of it would be how much? How much would the order be worth?A: We have already submitted around the total cost of this package is already Rs 3,700 crore. Reema: So this is over and above your order book of Rs 5,200 crore?A: Yes, presently, our order book is around Rs 5,200 crore, but we are expecting our order book at the last of this financial year around Rs 8,000 crore.