Current/ Expected Orderbook/ Pending Orders?

Current order book stands at approximately ₹12,500 crores. The order book backlog is strong at ₹12,400+ crores with a book-to-bill ratio of 3x. Major focus on the Delhi-Saharanpur elevated expressway project (~₹1,300 crores) and new water projects. Purvanchal Expressway project is near completion. Jal Jeevan surface water project (phase 1) valued around ₹800 crores is progressing as per schedule. Phase 2 of Jal Jeevan projects involves DPRs for about 1,400 villages; contracts expected to start soon. Bidding for irrigation projects, including recent bids in Karnataka, though the bidding pipelin

Any current/future new fundraising through debt or equity?

Gayatri Projects Limited has signed a definitive agreement with Interups USA for a preferential allotment of 75 million equity shares valued at Rs. 337 crores, subject to shareholder approval at the upcoming AGM. The equity infusion aims to partially pay down long-term debt and transition the company’s accounts from default to regular status. The funds from this equity issuance are expected to be received within a week or so after the AGM, around early September 2021. There is mention of possible further investment from this strategic investor, but the board has yet to decide and discussions a

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

Gayatri Projects Limited has signed a definitive agreement with Interups USA for a strategic investment. The initial investment amounts to Rs. 337 crores via preferential allotment of 75 million equity shares. There is mention of a possible follow-on investment after this initial amount, with discussions ongoing; no final decision made yet. The strategic investor aims to maintain a promoter stake of 51-49% and needs to conduct due diligence for the second phase of investment. Additional investments could be used partly to repay long-term debt and partly for working capital to speed up existing

Future growth expectations in sales/revenue/volumes?

FY22 revenue growth guidance is conservative at 0% to 5%, considering Q1 impacted by COVID and Q2 expected to be weak due to monsoon. Management expects FY23 to be strong with around 15% revenue growth as all projects in the order book are in full swing. The existing order book, valued at approximately ₹12,500 crores, is expected to be completed in the next 2 to 2.5 years, supporting revenue growth. New project focus includes the Delhi-Saharanpur elevated expressway and water projects under the Jal Jeevan mission. Execution ramp-up post-COVID disruptions and normalization of commodity prices a

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

FY21 top line was about ₹3,900 crores. FY22 revenue growth guidance is between 0% to 5%, conservatively due to COVID-19 impacts. Q2 is expected to be seasonally weak with flattish or marginal revenue growth. FY23 outlook is positive with expected growth around 15%, driven by full execution of existing order book. Present order book is strong at ₹12,500 crores with a book-to-bill ratio of 3x. Project execution is ramping up, including large projects like Delhi-Saharanpur elevated expressway and Jal Jeevan water projects. EBITDA margins under pressure due to high commodity prices but expected to

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Gayatri Projects LtdQ2 FY21Construction

Gayatri Projects Ltd Q2 FY21 Earnings Call Analysis

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

Price: ₹21.9P/E: 9.4Market Cap: ₹838 CrSector: Construction

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

N/A

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→FY22 revenue growth guidance is conservative at 0% to 5%, considering Q1 impacted by COVID and Q2 expected to be weak due to monsoon.
→Management expects FY23 to be strong with around 15% revenue growth as all projects in the order book are in full swing.
→The existing order book, valued at approximately ₹12,500 crores, is expected to be completed in the next 2 to 2.5 years, supporting revenue growth.
→New project focus includes the Delhi-Saharanpur elevated expressway and water projects under the Jal Jeevan mission.
→Execution ramp-up post-COVID disruptions and normalization of commodity prices are anticipated to aid higher turnover.
→Order book has a strong book-to-bill ratio of about 3x, indicating steady future project inflow and revenue visibility.

Margin guidance

Category 3

→FY21 top line was about ₹3,900 crores.
→FY22 revenue growth guidance is between 0% to 5%, conservatively due to COVID-19 impacts.
→Q2 is expected to be seasonally weak with flattish or marginal revenue growth.
→FY23 outlook is positive with expected growth around 15%, driven by full execution of existing order book.
→Present order book is strong at ₹12,500 crores with a book-to-bill ratio of 3x.
→Project execution is ramping up, including large projects like Delhi-Saharanpur elevated expressway and Jal Jeevan water projects.
→EBITDA margins under pressure due to high commodity prices but expected to normalize as escalation formulas catch up.
→PAT improved in Q1 FY22 to ₹23 crores from a loss of ₹12 crores in Q1 FY21.
→Equity infusion of ₹337 crores expected to reduce debt and improve financial health, supporting future profitability.

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Fundraise plans

Yes

→Gayatri Projects Limited has signed a definitive agreement with Interups USA for a preferential allotment of 75 million equity shares valued at Rs. 337 crores, subject to shareholder approval at the upcoming AGM.
→The equity infusion aims to partially pay down long-term debt and transition the company’s accounts from default to regular status.
→The funds from this equity issuance are expected to be received within a week or so after the AGM, around early September 2021.
→There is mention of possible further investment from this strategic investor, but the board has yet to decide and discussions are ongoing.
→Currently, the company is not talking to any banks for restructuring despite being at default since the new equity and receivables are expected to bring the company current within a quarter.
→No explicit mention of new debt fundraising plans at present.

Order book

→Current order book stands at approximately ₹12,500 crores.
→The order book backlog is strong at ₹12,400+ crores with a book-to-bill ratio of 3x.
→Major focus on the Delhi-Saharanpur elevated expressway project (~₹1,300 crores) and new water projects.
→Purvanchal Expressway project is near completion.
→Jal Jeevan surface water project (phase 1) valued around ₹800 crores is progressing as per schedule.
→Phase 2 of Jal Jeevan projects involves DPRs for about 1,400 villages; contracts expected to start soon.
→Bidding for irrigation projects, including recent bids in Karnataka, though the bidding pipeline is currently not very active.
→Enough bank guarantees available for new order inflows worth ₹3,000-5,000 crores annually.

Capex plans

→Gayatri Projects Limited has signed a definitive agreement with Interups USA for a strategic investment.
→The initial investment amounts to Rs. 337 crores via preferential allotment of 75 million equity shares.
→There is mention of a possible follow-on investment after this initial amount, with discussions ongoing; no final decision made yet.
→The strategic investor aims to maintain a promoter stake of 51-49% and needs to conduct due diligence for the second phase of investment.
→Additional investments could be used partly to repay long-term debt and partly for working capital to speed up existing projects.
→No other specific capex or capital investment plans were detailed in this call.
→The company expects the funds from this strategic investment shortly after shareholder approval in their upcoming EGM on August 28, 2021.

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