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Last Updated : Feb 13, 2017 05:14 PM IST | Source: CNBC-TV18

See 12-14 percent EBITDA margins going forward: MBL Infra

Infrastructure engineering company MBL Infrastructures posted weak results for third quarter ending December with revenues declining three percent on a nine month basis.

Infrastructure engineering company MBL Infrastructures posted weak results for the third quarter with revenues declining three percent on a nine-month basis.

In an interview to CNBC-TV18, AK Lakhotia, Chairman & Managing Director of the company said the company faced an exceptional onetime loss of Rs 219.79 crore and going forward the margins are sustainable at the same level. He said the company is aiming margin range of 12-14 percent going forward.

According to Lakhotia, consolidated revenues for FY17 would be around Rs 2,100-2,200 crore. Revenue will increase to Rs 2,700 crore for the same period in FY18.

The company is looking to reduce debt by adopting various strategies like monetising assets as well as bringing strategic investors on board, he said.

Below is the verbatim transcript of AK Lakhotia's interview to Sumaira Abidi and Prashant Nair on CNBC-TV18.

Prashant: Your nine months revenues are down 3 percent. The guidance essentially was for 24 percent growth. Could you update the number in terms of guidance for the full year and FY18 as well?

A: We should see the topline closing anywhere between Rs 2,100 and Rs 2,200. The guidance for '17-18 will be Rs 2,700.

Sumaira: At 13 percent would you say that the margins are sustainable or is it an impact of some one-off that we are seeing this time?

A: The margins are sustainable. Of course this year we had exceptional item of Rs 219.79 crore losses, one time, but going forward the margins are going to be strengthen.

Prashant: Could you give us a range for margins?

A: It should be northward, from 10.5 to 12-14 percent EBITDA.

Sumaira: Your finance costs continue to remain high. Is there no benefit that you are seeing of reduction in the cost of borrowing?

A: No. We expect that there should be regular downfall of the finance cost. We have adopted three stage strategies - 1) by selling of our build, operate and transfer (BOT) projects and thereby lowering the borrowings 2) by introducing financial partner in our BOT projects and thereby lowering the financial cost and 3) to have strategic tie-up with the bankers to convert a part of the borrowing to convertible instruments. This way we are aiming toward lowering our borrowing and that should help us to reduce our finance cost and increase our profitability.

For entire interview, watch accompanying video.
First Published on Feb 13, 2017 04:17 pm
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