Ircon International Ltd

- IRCON itself is not currently borrowing; the debt is raised by SPVs on a project financing basis with rates typically between 7.75% to 8.25%. - Equity investments have been made into road projects (~1,100 crores), coal JVs (~550 crores), renewable projects (~5 crores), and PMC work company (~65 crores). - Future equity commitments include around 800 crores for road projects and about 100 crores for coal projects, to be paid over the next two years. - The company is plowing back profits into these projects and aims to complete them quickly to start generating returns. - No specific mention of upcoming new fundraising through debt or equity beyond these existing obligations and commitments. - Dividend payout will follow DIPAM and DPE guidelines, with priority given to reinvestment in projects.

- IRCON has invested in several sectors via SPVs/JVs including roads (approx. ₹1,100 crores), coal (approx. ₹550 crores), renewable energy (marginal ₹5 crores), and PMC work (₹65 crores). - Future equity investment commitments include around ₹800 crores in road projects and about ₹100 crores in coal projects, expected to be paid over the next two years. - The company is deploying funds for ongoing projects including highway SPVs, coal projects, and renewable energy projects. - Current CAPEX for the core company is approximately ₹300 crores. - IRCON is focusing on funding projects through project financing and equity, adhering to DIPAM and DPE guidelines for dividend and capital management. - No immediate plans mentioned for buyback; the priority is to complete ongoing projects efficiently to start generating profits. - New orders and investments will be carefully evaluated with a focus on execution rather than aggressive new order inflows in the short term.

- IRCON expects significant revenue growth in FY23, targeting a turnover between ₹8,000 to ₹10,000 crore, up from ₹6,900 crore in FY22. - The company aims to focus more on execution in the current year, leveraging a strong order book of around ₹42,000 crore. - By the end of FY23, revenues could potentially reach ₹9,000 to ₹10,000 crore if execution proceeds well. - Order inflows for new projects are currently low, with project proposals worth ₹500–700 crore in the pipeline, mainly expected to materialize in the third quarter or later. - Execution cycles for projects typically span 4–5 years, with concentrated turnover in the middle years. - International business is a focus area for new orders, alongside domestic projects. - EBITDA margins are projected at around 8.5% to 9%, with PAT around 7% to 7.5%, albeit with some expected margin pressure due to increased competition.

- FY23 revenue guidance is strong with expected execution turnover between Rs. 8,000 to Rs. 10,000 crores, up from Rs. 6,900 crores in FY22. - Margin pressure expected due to increased competitive bidding; EBITDA margins anticipated at 8.5% to 9% currently, with a potential decline by around 1% over next 2-3 years. - PAT margins projected at 7% to 7.5% for near term, possibly declining slightly due to margin squeeze trends. - Growth driven primarily by execution of a robust order book of Rs. 42,066 crores, with a typical project execution cycle of 4 to 5 years. - Equity investments in roads, coal, and renewable sectors support long-term profitability through SPVs and JVs. - Dividend payouts to continue as per DIPAM/DPE guidelines, balancing reinvestment in projects and shareholder returns.

- As of June 30, 2022, IRCON's order book stood at Rs. 42,066 crore. - The order book comprises a mix of nomination-based (53%) and competition-based (47%) projects. - The typical execution cycle is about 4 to 5 years. - For FY23, execution is the primary focus rather than new order inflows. - Order inflow in Q1 FY23 was marginal due to focus on execution. - The company expects order inflows to increase from the third quarter onwards. - Current pipeline for bidding (domestic and international combined) is around Rs. 500 to 700 crore. - Future commitments include approximately Rs. 800 crore to be paid in road projects over the next two years. - Total equity investments in JVs/SPVs approximate Rs. 1,200 crore with a combined loan/quasi-equity of Rs. 1,800 crore. - Targeted order intake for FY23 is between Rs. 8,000 to 10,000 crore.