After having posted a net profit of Rs 20.9 crore in the second quarter of FY15, KK Mohanty, managing director, Gammon Infra says the company will be in the black in the next quarter.
Speaking to CNBC-TV18, Mohanty says the company is now eyeing a topline of RS 250 crore in the quarters to come.
The company's net sales were up 11 percent at Rs 173.5 crore against Rs 155.3 crore.
Below is the verbatim transcript of KK Mohanty’s interview to CNBC-TV18’s Latha Venkatesh and Sonia Shenoy.
Sonia: You have reported a profit this time around but that is because of a tax writeback of Rs 23 crore. Can you tell us operationally how has the company performed, what have the margins been versus same time last year and has there been any improvement at all?
A: Yes, our quarter-on-quarter comparison our top line has gone up and we have come from red to black now, we have posted Rs 20 crore profit in quarter. On nine month result because we closed our annual accounts in nine months, we have a top line of Rs 520 crore and a total loss of Rs 40 crore. That is against one exceptional item of exiting two projects where loss was Rs 39 crore in that. So we have improved the performance, the top line has gone up and the profit has also come back to black.
The EBITDA level is okay considering that we have started operating couple of projects and some of the EPC income has started coming in.
Latha: When at the EBITDA level will you get into the black? You have a tax writeback in the nine month period of Rs 21 crore and Rs 22-23 crore tax writeback in the current quarter. At a pre tax level you are still about Rs 61 crore in the red for nine months and about Rs 1.5 crore in the red for this quarter. When at the pretax level do you get into the black?
A: The pretax in the next quarter onwards will be into the black because the exceptional item is over now and two of the projects have started implementation. We have also started collecting toll from Vijayawada and three more projects are likely to be completed in next couple of months. So we will have much better results for the future quarters and especially for the next annual.
Latha: So what is the next quarter or the next six months likely to look like in terms of revenues? What will be the quarterly run rate in the next two quarters?
A: We should cross around Rs 250 crore topline.
Sonia: You did mention that some of the EPC income has come into this quarter. Which are the projects and what is the quantum?
A: Sidhi – Singrauli and we have taken around Rs 45 crore.
Sonia: Going forward what are the projects that you are expecting to accrue in the second half of the year?
A: Two projects, Vijayawada we have started but we have not taken the EPC contract bills ahead. So Sidhi – Singrauli and Vijayawada Gundugolanu will be under implementation. Besides that there are three projects – Pravara, Hajipur-Muzaffarpur road and Godavari Bridge. These three projects are likely to be completed between two-three months time. So all these projects will give a top line of additional annualised Rs 350-400 crore so nearly Rs 100 crore we can get out of that in the full quarter.
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