Atlantaa

Q4 FY19 Earnings Call Analysis

Construction

Full Stock Analysis
fundraise: No informationcapex: Yesrevenue: Category 1margin: No informationorderbook: Yes
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fundraise

Any current/future new fundraising through debt or equity?

- No explicit mention of new fundraising through debt or equity in the provided transcript. - The company is aggressively pursuing receivables to reduce existing debt and generate growth capital. - On standalone basis, Atlanta Limited plans to become debt-free by June or September of the next financial year. - On a group basis, substantial debt reduction is targeted within the next couple of years. - The strategy involves focusing on EPC and HAM projects, and converting land bank into real estate opportunities for growth capital. - No direct statements indicating plans for fresh debt or equity raising at the time of this call.
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capex

Any current/future capex/capital investment/strategic investment?

- Atlanta Limited is actively pursuing EPC and hybrid annuity based project bids, focusing on adding Rs. 5 to Rs. 10 billion worth of EPC work annually. - The company holds three ongoing real estate projects with a total cost of Rs. 5.9 billion, including Atlanta Enclave (Thane), Olympic Lifestyle (Jodhpur), and Atlanta Heights (Mumbai). - For future strategy, Atlanta follows a practice of purchasing land for setting up plants and camps during projects, later converting the land into real estate opportunities as economic activities grow. - The company has its own land bank in Thane and other locations acquired years ago when prices were low, and is exploring similar opportunities in Nagpur. - No explicit mention of new standalone capital expenditure or strategic investment beyond ongoing project developments and land acquisition strategy was detailed in the call.
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revenue

Future growth expectations in sales/revenue/volumes?

- Atlanta Limited is targeting a 50% year-on-year growth for the next 5 years (Page 5). - The company is working to expand its order book to about Rs. 2000 Crores by the next fiscal year (Page 4). - Focus remains on bidding for EPC and hybrid annuity projects, aiming to add Rs. 5 to Rs. 10 billion value in EPC work every fiscal (Page 3). - Concentration is on road and highway projects in states like Assam, Gujarat, Maharashtra, UP, and Bihar, with plans for significant presence in upcoming projects including Bharatmala (Pages 4 and 5). - Real estate projects are ongoing with phased developments expected to complete by 2020-2021, contributing to future growth (Page 3).
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margin

Future growth expectations in earnings/operating earnings/profits/EPS?

- Atlanta Limited targets a **50% year-on-year growth for the next 5 years** as stated by Managing Director Rikiin Bbarot. - The company is focused on expanding its EPC order book from Rs. 344.6 million currently to about Rs. 2000 Crores by the next fiscal year. - The strategy includes bidding aggressively on EPC and HAM projects, particularly in Gujarat, Maharashtra, Assam, UP, and Bihar. - Debt-reduction plans aim to make Atlanta debt-free on a standalone basis by June or September of the next financial year, improving financial leverage and profitability. - With completion and monetization of real estate projects and arbitration claims recovery, the company expects better profit margins going forward. - Current EPC margin pressures due to execution mix may ease as the order book grows and more arbitration-related high-margin revenues come in.
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orderbook

Current/ Expected Orderbook/ Pending Orders?

- As of December 31, 2017, Atlanta Limited's EPC order book stood at Rs. 3.446 billion (Rs. 3446 million). - The company is actively working to expand this order book. - The target is to grow the order book to about Rs. 20 billion (Rs. 2000 Crores) by the next fiscal year. - Currently, the entire EPC order book pertains to roads and highways; the company is not active in mining at this time. - Atlanta Limited is prequalified to bid for projects worth over Rs. 14 billion. - The company focuses on bidding for EPC and hybrid annuity-based projects.