Any current/future new fundraising through debt or equity?

The company is pursuing a strategic equity infusion, with a preferential allotment announced to a strategic investor; the deal is in follow-up to conclusion (Page 3). There are personal asset monetization plans by promoters, aiming to infuse a couple of hundred crores into the company to alleviate liquidity issues; expected within the next couple of months (Pages 6-7). Discussions are ongoing with banks for restructuring debt repayment schedules to align with cash flows; restructuring process expected to complete within three months (Pages 10-11). The company is also in early talks with other

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

The company is in advanced discussions with a strategic investor; the deal is expected to close in the next 2-3 weeks, though there have been some structural issues with the US-based investor. Parallelly, the company is also exploring other strategic investors, including some Middle East investors, as a Plan B in case the current deal does not materialize. Promoters are working on personal asset monetization to infuse a couple of hundred crores of capital to mitigate liquidity tightness. No new project bidding is currently happening, focusing instead on consolidating recently won water project

Future growth expectations in sales/revenue/volumes?

The company is currently not bidding for new NHAI HAM projects but is focusing on consolidating its water projects, where it has already secured orders worth nearly ₹5000 Crores in the last two to three quarters. New irrigation tenders are scarce due to COVID-related delays, but the company expects new Jal Jeevan Mission orders after March 2022. Revenue guidance for the full year is expected to be around the same as the previous year or up to 10% higher. Plans to resume bidding for new projects will depend on the progress achieved in the current water projects. Early completion bonuses

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

Revenue guidance for the full year is expected to be around last year's level or up to 10% higher. EBITDA margins are anticipated to improve and potentially return to previous levels of 12-13% by the next quarter, aided by normalization of bank guarantee commission rates and easing commodity prices. Early completion bonuses from key projects like Purvanchal Expressway are expected to generate cash inflows (~₹140-160 Crores), supporting liquidity. Arbitration claims and settlements, including expected amounts of ₹200-400 Crores by March 2022, may provide additional financial relief. The

Current/ Expected Orderbook/ Pending Orders?

Current order book is approximately ₹12,000 to ₹14,000 Crores as mentioned by Sandeep Reddy on page 8. The company has won water projects orders worth nearly ₹5,000 Crores in the last two to three quarters (page 11). No significant bidding is happening currently, especially for NHAI HAM projects, as the company is focusing on consolidating existing water projects (page 11). There are no active irrigation tenders currently due to state government delays pushed by the COVID second wave; new tenders expected after March 2022 (pages 9 and 11). Jal Jeevan Mission order book stands at nearly ₹4,000

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Gayatri Projects LtdQ3 FY21Construction

Gayatri Projects Ltd Q3 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 4

Margin

Category 3

Fundraise

Yes

Order

Capex

N/A

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4

→The company is currently not bidding for new NHAI HAM projects but is focusing on consolidating its water projects, where it has already secured orders worth nearly ₹5000 Crores in the last two to three quarters.
→New irrigation tenders are scarce due to COVID-related delays, but the company expects new Jal Jeevan Mission orders after March 2022.
→Revenue guidance for the full year is expected to be around the same as the previous year or up to 10% higher.
→Plans to resume bidding for new projects will depend on the progress achieved in the current water projects.
→Early completion bonuses from the Purvanchal Expressway project (₹140-160 Crores) are expected to support cash flow and growth.
→Resolution of arbitration claims, expected to bring ₹200-400 Crores by March 2022, may positively influence financials.

Margin guidance

Category 3

→Revenue guidance for the full year is expected to be around last year's level or up to 10% higher.
→EBITDA margins are anticipated to improve and potentially return to previous levels of 12-13% by the next quarter, aided by normalization of bank guarantee commission rates and easing commodity prices.
→Early completion bonuses from key projects like Purvanchal Expressway are expected to generate cash inflows (~₹140-160 Crores), supporting liquidity.
→Arbitration claims and settlements, including expected amounts of ₹200-400 Crores by March 2022, may provide additional financial relief.
→The company is not currently bidding on new projects but focusing on consolidating awarded water and irrigation projects (~₹5000 Crores) with expectations to resume bidding after progress.
→Debt restructuring discussions with banks are ongoing, aiming for completion within three months to align repayments with cash flows, aiding financial stability and growth.

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Fundraise plans

Yes

→The company is pursuing a strategic equity infusion, with a preferential allotment announced to a strategic investor; the deal is in follow-up to conclusion (Page 3).
→There are personal asset monetization plans by promoters, aiming to infuse a couple of hundred crores into the company to alleviate liquidity issues; expected within the next couple of months (Pages 6-7).
→Discussions are ongoing with banks for restructuring debt repayment schedules to align with cash flows; restructuring process expected to complete within three months (Pages 10-11).
→The company is also in early talks with other strategic investors, including some from the Middle East, as a parallel exercise in case the current equity infusion does not materialize (Page 6).
→No new debt fundraise explicitly mentioned beyond restructuring discussions with banks at this stage.

Order book

→Current order book is approximately ₹12,000 to ₹14,000 Crores as mentioned by Sandeep Reddy on page 8.
→The company has won water projects orders worth nearly ₹5,000 Crores in the last two to three quarters (page 11).
→No significant bidding is happening currently, especially for NHAI HAM projects, as the company is focusing on consolidating existing water projects (page 11).
→There are no active irrigation tenders currently due to state government delays pushed by the COVID second wave; new tenders expected after March 2022 (pages 9 and 11).
→Jal Jeevan Mission order book stands at nearly ₹4,000 Crores, with no new tenders currently but expecting new orders post-March 2022 (page 9).

Capex plans

→The company is in advanced discussions with a strategic investor; the deal is expected to close in the next 2-3 weeks, though there have been some structural issues with the US-based investor.
→Parallelly, the company is also exploring other strategic investors, including some Middle East investors, as a Plan B in case the current deal does not materialize.
→Promoters are working on personal asset monetization to infuse a couple of hundred crores of capital to mitigate liquidity tightness.
→No new project bidding is currently happening, focusing instead on consolidating recently won water projects worth nearly ₹5000 Crores.
→The company is concentrating on managing cash flows and restructuring debt with banks rather than fresh capex at this stage.

How does Gayatri Projects Ltd rank vs peers in Construction?

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1Gayatri Projects Ltd

Rev 4Mar 3

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