By the year-end, orderbook is expected to be around Rs 7500 cr plus and margins to sustain at 10 percent, said Manoj Tulsian, Wholetime Director and CFO, JMC Projects.
The Prabhudas Lilladher Infrastructure Conference that kicked off on January 10 was largely triggered by the announcement from the government that it is meaningfully increasing the amount of road network.
The government plans 35000 Kilometers of roads at an annual outlay of Rs 5.3 lakh crore over next 3-4 years, which will increase the amount of roads that will be bid by NHAI.
Sharing the impact of these developments on their order book, Manoj Tulsian, Wholetime Director and CFO, JMC Projects said their current orderbook stands at Rs 7000 crore and in the last eight months they have declared orders worth Rs 2000 crore, adding that their L1 position is at Rs 1200 crore.
By the year-end, orderbook is expected to be around Rs 7500 crore plus compared to the Rs 6500 crore they started the year with, said Tulsian.
With regards to margins, he said they are currently at 10 percent and with the quality of orderbook they are generating, they will be able to maintain it at these levels if not higher.
So, for the current year they expect growth to be around 20 percent and around 15 percent for the next year as of now, he said.
Breaking up the orderbook of Rs 7000 crore, he said 75 percent of it is buildings and 25 percent is infrastructure. The orderbook ratio of private to government stands at 60:40.
With regards to debt, he said their standalone debt is at Rs 700 crore and consolidated debt (including build-operate-transfer BOT) projects it is around Rs 2000 crore. The company has been able to reduce the interest rates on 3 out of 4 project, said Tulsian.
He said the traffic growth in BOT projects has been good, he said, adding that on average on the 4 projects growth has been to the tune of 7-8 percent.According to him, because of the traffic growth, the valuations of their projects would also be more realistic.