Gayatri Projects Ltd

- The transcript does not mention any plans for new fundraising through debt or equity in the current or near future. - The company is focused on deleveraging and balance sheet strengthening as a key strategy priority. - They expect cash inflows of approximately 400 to 600 crores over the next six months, directed entirely toward debt reduction. - They are in an advanced stage of monetizing arbitration awards worth around 210-220 crores via bank guarantee route, which will help reduce debt. - Interest costs remain high but efforts are underway to reduce rates starting Q4FY21 through negotiations with banks. - No explicit mention of issuing new equity or raising fresh debt beyond working capital and refinancing discussions.

- No additional capex on equipment is expected for water projects, as these are less capital intensive compared to roads. - Water projects mostly involve supply of materials rather than heavy capital expenditure. - The company aims to maintain around 60% exposure to road projects and does not plan to increase capex there. - Strategic focus includes diversifying into waterworks and irrigation projects without significant new equipment investments. - Existing resources, equipment, and manpower tied up in road projects will be utilized for roads and water projects. - Overall, the company is maintaining an asset-light business model focusing on EPC orders without large new capital investments.

- The company expects execution to significantly pick up from the second half (H2) of the fiscal year. - FY21 revenue is expected to be the same as FY20, recovering from COVID-19 related disruptions. - Management is confident of achieving 4%-5% full-year revenue growth after a 13% degrowth in the first half due to COVID lockdowns and severe monsoon. - Order inflow guidance for the year is between ₹3,000 to ₹4,000 crores with strong bidding pipeline in both roads and water segments. - The focus is on maintaining revenue from road projects around 60% of the order book and increasing the share of water and irrigation projects to about 35%. - The company aims for healthy EBITDA margins of 14%-15% and plans order book execution at an annual turnover exceeding ₹5,000 crores. - Cash inflows from arbitration awards (~₹220 crores) will support debt reduction and working capital.

- Execution and revenue growth expected to pick up materially in H2FY21, returning to pre-Covid levels. - Company confident of maintaining FY21 revenue in line with FY20, aiming for 4-5% growth after 13% degrowth in H1 due to Covid and severe monsoon. - EBITDA margins targeted at 14-15%, expected to improve as execution normalizes and labor/raw material shortages ease. - Order inflow guidance for FY21 is ₹3,000-4,000 crores, focusing more on irrigation and water projects alongside roads. - Waterworks and irrigation projects expected to increase share from 29% to around 35% of order book, balancing 65% roads. - Company expects improved credit rating within a few quarters, supporting better financing costs. - Interest cost expected to decline toward 10-10.5% from Q4 onwards, aiding profitability. - Monetization of arbitration awards (~₹220 crores) and debt reduction (₹400-600 crores inflow planned) will strengthen the balance sheet and support future earnings growth.

- Current pure-play EPC order book stands at ₹12,000 crores, with a book-to-bill ratio of 3.7 times, indicating growth visibility for the next 3-4 years. - The company is targeting an order inflow of ₹3,000 to ₹4,000 crores for the current financial year. - Order inflow in the first half of the year has been poor (~₹150-₹200 crores per quarter), with focus on consolidating existing orders. - Strategy involves shifting focus from roads (currently ~65% of order book) to irrigation and water projects, aiming for ₹3,000 crores in irrigation/water and ₹1,000 crores in roads in future order book. - There is a significant bidding pipeline with about ₹7,000-8,000 crores EPC bids and ₹5,000 to ₹10,000 crores in water projects pipeline. - The company is not pursuing HAM projects actively; most NHAI orders are HAM, which represents about 70% of NHAI bids. - Execution expected to pick up significantly from H2 onwards.