This article first appeared on GuruFocus.<\/p>\n
For the complete transcript of the earnings call, please refer to the full earnings call transcript.<\/p>\n
Order book remains robust at Rs 13,535 crore, with a strong pipeline of Rs 22,000 crore in public sector and Rs 5,000 crore in private sector for FY27.<\/p>\n
Management is confident of achieving FY27 order inflow target of Rs 4,500-5,000 crore, with Q2 expected to exceed the upper band.<\/p>\n
Execution momentum is improving: NBCC revenue is expected to jump from Rs 20 crore to Rs 60 crore per month, and IIT Bombay project has started.<\/p>\n
Promoter share pledge has been reduced from 85.5 lakh shares to 50 lakh shares, with a target for full release by end of FY27.<\/p>\n
Working capital improvement is on track, with a target to reduce net working capital days by 25-30 days in FY27, following a 40-day reduction last year.<\/p>\n
The company expects a substantial portion of the Rs 10 crore additional provision to be reversed in Q3\/Q4 as inflation indices catch up with commodity prices.<\/p>\n
Q1 FY27 revenue growth was only 7% YoY, impacted by labor shortages and project delays, with EBITDA margin declining to 15.7% from 17.2%.<\/p>\n
An additional provision of Rs 10 crore was taken due to commodity price volatility, particularly non-ferrous metals, which is not yet reflected in government inflation indices.<\/p>\n
Execution was hampered by project-specific delays, such as IIT Bombay (started late due to permissions) and CIDCO (land handover pending), leading to slower revenue conversion.<\/p>\n
Gross debt increased to Rs 522 crore due to a temporary shift in payments, though management expects reduction on a yearly basis.<\/p>\n
The company faces risks from potential Delhi NCR construction bans (NGT) in Q3, which could impact revenue if extended beyond the factored 20 days.<\/p>\n
Contract assets and debtors remain high at ~78% of revenue, though improving, with significant unbilled revenue in projects like CIDCO and MADA.<\/p>\n
Warning! GuruFocus has detected 3 Warning Sign with BOM:540710.<\/p>\n