Gayatri Projects LtdQ2 FY20Construction

Gayatri Projects Ltd

Q2 FY20 Earnings Call Analysis

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

N/A

Order

Capex

N/A

0 of 3 growth signals are positive — mixed outlook.

Revenue guidance

Category 4

→FY21 revenue growth expected to be flat due to slow operational scale-up affected by COVID-19 and monsoon delays.
→Scale of operations anticipated to pick up only from the second half (H2) of FY21 onwards.
→Order inflow target for FY21 is between INR 30 to 40 billion.
→Strong bid pipeline of INR 340 billion in road projects and INR 240 billion in irrigation projects provides high growth visibility for the next 3 to 4 years.
→The company's book-to-bill ratio stands at 3.8 times, indicating robust order backlog relative to revenue.
→The company is focusing on maintaining EBITDA margins at a minimum of 15%.
→No aggressive bidding; tenders are being pursued selectively to maintain margins.

Category 3

→Gayatri Projects expects flat revenue growth for FY21, with operational scale picking up from H2 onwards.
→The company aims to maintain EBITDA margins at a minimum of 15%.
→Order inflow target is set at ₹30 to ₹40 billion for FY21.
→The strong existing order book of ₹130 billion and a bid pipeline worth ₹340 billion (roads) and ₹240 billion (irrigation) provide high revenue visibility for the next 3 to 4 years.
→EBITDA margins may be impacted short-term by specific project delays (e.g., Varanasi project) but have rights to recover additional costs over time.
→Interest cost reduction is expected gradually by FY22 following debt restructuring efforts.
→The company is focused on balance sheet deleveraging and expects operational normalization post-pandemic to support earnings stability and growth.

Get access to all 5 sections — revenue, margin, fundraise, orderbook, and capex — for Gayatri Projects Ltd and 1,400+ other companies.

→There is no explicit mention of any new fundraising through debt or equity during the call.
→Discussion mainly revolves around deleveraging and balance-sheet improvement efforts.
→The company reduced long-term debt by ₹2.3 billion in FY20 and is up to date on debt servicing.
→They are working on restructuring debt, aiming to convert part of term loans into bank guarantees to reduce costs.
→Interest rate reduction of a couple of hundred basis points is being sought, with possible benefits expected by FY22.
→No new equity fundraising mentioned; focus remains on operating in an asset-light EPC model.
→The company is handling arbitration awards and reconciliations to improve cash flows and reduce debt.

→Gayatri Projects has a current EPC order book of ₹130 billion.
→The book-to-bill ratio is 3.8 times, providing growth visibility for the next 3 to 4 years.
→The company did not participate in aggressive bidding during FY20 but selectively participated in tenders maintaining margins.
→In Q1 FY21, the company won a water supply project worth ₹1.4 billion.
→There is a strong bid pipeline with:
→ - ₹340 billion in road projects.
→ - ₹240 billion in irrigation projects.
→Execution was impacted due to COVID-19 and monsoon; operations resumed at 50-60% levels with expected normalization in H2 FY21.

→No specific current or future capex or strategic investments were detailed in the transcript.
→The company is focusing on an asset-light business model with pure EPC orders.
→There was mention of attempting to convert a 600-acre landholding (Bhandara Thermal Power Project) into a solar project to reduce exposure and possibly sell it off, indicating a potential shift towards renewable energy assets.
→No explicit mention of new large capital expenditures or strategic investments.
→Emphasis is on deleveraging, balance-sheet improvement, and order book execution rather than new investments.

How does Gayatri Projects Ltd rank vs peers in Construction?

Pro feature

1Gayatri Projects Ltd

Rev 4Mar 3

See full Construction sector rankings

Want more stocks like Gayatri Projects Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.