In an interview to CNBC-TV18, Satish Parakh, MD of Ashoka Buildcon spoke about the latest happenings in the company and the road ahead. He said that company has been witnessing slowdown in toll collection over past three quarters across India. Given this sluggishness, he doesn’t expect positive growth over next few quarters.
Also Read: EPC biz turnover to improve by 15% ahead, says Ashoka Buildcon Below is the edited transcript of Satish Parakh’s interview with CNBC-TV18 Q: Can you tell us whether you are noticing any pressure on toll collections in any of the areas where you collect toll? A: In the last three quarters growth has not been achieved as expected. It is almost flat. This is happening all over the country. Q: Which are the specific roads where you are noticing the slowdown? A: There is slowdown in Dhankuni and our highway projects like Belgaum-Dharwad. Q: What is the extent of the fall in collection if you can give us an year-on-year (Y-o-Y) comparison or a quarter-on-quarter (Q-o-Q) comparison? A: There is no fall, but we are not seeing the expected growth instead of 5 percentages, it is just one-two percent. Q: The report suggest that toll companies like yours and even another one - one of your peer companies -- have seen a decline sequentially in toll collections, that has not happened? A: There is decline in one of the projects, but overall average there is a rise of 1-2 percent. Q: The decline was in Dhankuni-Kharagpur? A: Dhankuni-Kharagpur is almost flat. Q: Where was the decline? A: Decline was in Belgaum-Dharwad and Bhandara project. Q: Given the fact that the economy is slowed down plus the toll collections have not been so high, what is going to happen with respect to rates or the tolls, do you expect that to be cut or going up, could you give us an outlook? A: Toll rates are related to inflation. We have a 3 percent fix rise and 40 percent of inflation. Q: Have you all been able to pass it on or because of the slowdown it is difficult to pass on this, we have seen that in the case of many other consumer goods as well where the companies have been unable to pas on inflation linked cost? A: Yes, the rates are being governed by government. So they are passed on to the consumers.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
