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Last Updated : May 31, 2016 12:52 PM IST | Source: CNBC-TV18

Delayed execution of new orders hampered Q4: MBL Infra

MBL Infrastructures bagged orders worth Rs 3,190 crore in Q4 FY16, and AK Lakhotia, Chairman and CEO of the company expects the profitability of these orders to be recognised in FY17.

MBL Infrastructures' topline grew 13 percent to Rs 625 crore but the bottomline was flat at around Rs 14 crore due to pressure on EBITDA margins in the fourth quarter of FY16. 

The company bagged orders worth Rs 3,190 crore in Q4 FY16, and a delay in their execution led to low EBITDA margins, said AK Lakhotia, Chairman and CEO.

The profitability of these orders will be recognised in FY17, Lakhotia maintained.

MBL Infra, a low geared company, has Rs 125 crore of long-term borrowing on a standalone basis, he said.  

Lakhotia also mentioned that the company is in no need to raise money.


Below is the verbatim transcript of AK Lakhotia's interview with Ekta Batra & Anuj Singhal on CNBC-TV18.

Anuj: I want to understand your order inflow for FY16 because your guidance of Rs 3,500 crore?

A: During the year we had order inflow of Rs 3,600 crore odd and during the last quarter we had orders of Rs 3,149 crore.

Anuj: The other point is why your margins came under so much pressure. Your topline was fine, it grew 13 percent but your bottomline was flat because of pressure on margins?

A: Actually this is due to accounting standards. The margins have grown; from Rs 80 crore profit after tax (PAT) on standalone basis it has grown to Rs 85 crore but because we received many orders during the last quarter, their execution is in place, their profitability has not been recognised. This will be recognised in the current year '16-17.

Ekta: What is your balance sheet looking like right now? Could you take us through what your fresh incremental debt might have been, short-term or long-term, which you have taken on board in Q4?

A: We are still a low geared organisation with low long-term gearing. We have total Rs 125 crore of long-term borrowings on the standalone basis. If we take the working capital, the debt to equity ratio is 1.21. If we take the build, operate and transfer (BOT) projects, it is well within 2:1.

Ekta: Any funding requirements in FY17 which could be via debt or equity?

A: No. Of course working capital tie-up will be there for the current year but other than that we do not need. The cash flow from operations - they are sufficient to take care of that. During the current year we had a cash flow of 137 from operations which is a positive sign and going forward we expect to fund our growth by way of our cash accruals.
First Published on May 31, 2016 12:41 pm
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