Any current/future new fundraising through debt or equity?

The promoters' unsecured loans will be converted into equity in the current financial year, reducing promoter debt on the books. The Company has an enabling resolution to raise up to ₹200 crores through QIP (Qualified Institutional Placement), monitoring the best interest of the Company before deciding on any equity dilution. No specific timeline for further equity fundraising mentioned; management remains open but cautious. Additional bank guarantee sanctions of ₹300 crores are under process with various banks (PNB, SBI, UBI) to support execution. Current non-fund-based limits are ₹150 crores

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

The CAPEX plan for FY '24 is pegged at ₹55-60 crores, up from the earlier guidance of ₹40 crores due to new projects received in Q1. Total CAPEX addition in Q1 FY '24 was ₹12.77 crores. The company expects an increase of about ₹20 crores in CAPEX because of new projects secured. No specific mention of strategic investments or future expansion beyond the current CAPEX plan was provided. The focus appears to be on efficiently executing ongoing projects and managing working capital rather than large-scale future capital investments at this time.

Future growth expectations in sales/revenue/volumes?

Revenue guidance for FY '24 is around ₹2,100 crores, including escalation. Strong order inflow target of ₹2,200 crores to maintain 3.5x to 4x order book. Growth expected to accelerate from Q3 FY '24 onwards, with H2 revenue targeted at ₹1,300-1,350 crores. Asset turns expected between 4.7 to 4.9 in FY '24. EBITDA margins guided at 17% to 18% for FY '24. For FY '25, the company targets at least 25% year-on-year revenue growth on the expanded base. Funding and bank guarantee limits are being expanded to support projected growth. Robust bid pipeline across private and government sectors with qual

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

The company targets a revenue of around ₹2,100 crores for FY '24, with strong growth expected from Q3 onwards. For FY '25, Capacit'e aims for at least 25% year-on-year revenue growth over the expanded base. EBITDA margin guidance remains steady at 17%-18%, with management hopeful for a positive surprise. EBIT margins for high-rise projects are expected to range between 14%-23%, averaging around 17%-18%. Profitability in Q1 FY '24 was lower compared to last year due to cash flow-linked revenue recognition but expected to improve with enhanced liquidity. Debt reduction plans foresee a

Current/ Expected Orderbook/ Pending Orders?

As of March 31, 2023, the standalone order book stood at ₹10,245 crores. The order book mix is approximately 63% public sector and 37% private sector. The company is targeting order inflows of around ₹2,200 crores for FY '24 to maintain a 3.5 to 4x order book. Already booked close to ₹1,200 crores in the current year. The company qualifies for RLDA (Railway Land Development Authority) projects, airport projects, housing projects, and hospital projects (up to ₹600-800 crores standalone). The order book is dynamic with flexibility to hold 35-45% private sector share based on client quality. The

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Capacite Infraprojects LtdQ2 FY23Construction

Capacite Infraprojects Ltd Q2 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹265P/E: 10.8Market Cap: ₹2.1K CrSector: Construction

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Revenue guidance for FY '24 is around ₹2,100 crores, including escalation.
→Strong order inflow target of ₹2,200 crores to maintain 3.5x to 4x order book.
→Growth expected to accelerate from Q3 FY '24 onwards, with H2 revenue targeted at ₹1,300-1,350 crores.
→Asset turns expected between 4.7 to 4.9 in FY '24.
→EBITDA margins guided at 17% to 18% for FY '24.
→For FY '25, the company targets at least 25% year-on-year revenue growth on the expanded base.
→Funding and bank guarantee limits are being expanded to support projected growth.
→Robust bid pipeline across private and government sectors with qualification for projects up to ₹800 crores.
→Balanced project mix aiming for ~70% government and 30% private sector revenue over next two years.

Margin guidance

Category 3

→The company targets a revenue of around ₹2,100 crores for FY '24, with strong growth expected from Q3 onwards.
→For FY '25, Capacit'e aims for at least 25% year-on-year revenue growth over the expanded base.
→EBITDA margin guidance remains steady at 17%-18%, with management hopeful for a positive surprise.
→EBIT margins for high-rise projects are expected to range between 14%-23%, averaging around 17%-18%.
→Profitability in Q1 FY '24 was lower compared to last year due to cash flow-linked revenue recognition but expected to improve with enhanced liquidity.
→Debt reduction plans foresee a gross debt decrease of about ₹80 crores in the current financial year.
→Improved liquidity and working capital management, aided by equity infusion and better bank guarantees, will support sustained operational performance and earnings growth.

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Fundraise plans

Yes

→The promoters' unsecured loans will be converted into equity in the current financial year, reducing promoter debt on the books.
→The Company has an enabling resolution to raise up to ₹200 crores through QIP (Qualified Institutional Placement), monitoring the best interest of the Company before deciding on any equity dilution.
→No specific timeline for further equity fundraising mentioned; management remains open but cautious.
→Additional bank guarantee sanctions of ₹300 crores are under process with various banks (PNB, SBI, UBI) to support execution.
→Current non-fund-based limits are ₹150 crores, and fund-based limits sanctioned are ₹165 crores, with some headroom available.
→Overall, debt reduction of about ₹80 crores is expected in the current financial year through repayments and conversions.

Order book

→As of March 31, 2023, the standalone order book stood at ₹10,245 crores.
→The order book mix is approximately 63% public sector and 37% private sector.
→The company is targeting order inflows of around ₹2,200 crores for FY '24 to maintain a 3.5 to 4x order book.
→Already booked close to ₹1,200 crores in the current year.
→The company qualifies for RLDA (Railway Land Development Authority) projects, airport projects, housing projects, and hospital projects (up to ₹600-800 crores standalone).
→The order book is dynamic with flexibility to hold 35-45% private sector share based on client quality.
→The firm expects continued strong bids and inflows to surpass targets, with visibility of a robust mix of government and private sector ideally at 70:30 over next two years.

Capex plans

Yes

→The CAPEX plan for FY '24 is pegged at ₹55-60 crores, up from the earlier guidance of ₹40 crores due to new projects received in Q1.
→Total CAPEX addition in Q1 FY '24 was ₹12.77 crores.
→The company expects an increase of about ₹20 crores in CAPEX because of new projects secured.
→No specific mention of strategic investments or future expansion beyond the current CAPEX plan was provided.
→The focus appears to be on efficiently executing ongoing projects and managing working capital rather than large-scale future capital investments at this time.

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