Any current/future new fundraising through debt or equity?

The company does not foresee needing a Qualified Institutional Placement (QIP) currently for the balance four HAM projects; funding is expected through lenders or bankers. (Page 9) A preferential or rights issue is being evaluated to raise the balance equity requirement for the HAM projects. (Page 9) The company has already infused Rs. 120-130 crores equity and plans to infuse an additional Rs. 100-120 crores from promoters and sponsor company over the next 6-12 months for HAM projects. (Page 5) Bankers have mandated approximately 50% of equity infusion upfront for the first two projects pr

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

MEP Infrastructure is undertaking six HAM (Hybrid Annuity Model) projects with a total EPC (Engineering, Procurement, and Construction) value of around Rs. 3,500 to 3,800 crores, expected to be completed over 2 to 2.5 years. The equity requirement for these six projects is approximately Rs. 380 to 400 crores, with Rs. 120-130 crores already infused; additional equity infusion of Rs. 100-120 crores is planned over the next 6 to 12 months. Financial closure for Nagpur 1 and 2 projects has been completed; financial closure for Arawali-Kante-Wakad and Talaja-Mahuva to be completed by late 2016 or

Future growth expectations in sales/revenue/volumes?

The company expects construction revenue from six hybrid annuity projects to start soon, with Nagpur 1 and 2 projects' construction beginning in December. Estimated construction revenue for FY17 is around Rs. 1,300 to 1,400 crores, increasing to Rs. 1,500 to 1,600 crores in FY18. The total work for these six projects is approximately Rs. 3,500 to Rs. 3,800 crores, to be completed over 2 to 2.5 years. Addition of six hybrid annuity projects strengthens long-term revenue visibility with a current order book of about Rs. 3,837 crores. The company maintains an asset-light philosophy while targetin

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

MEP Infrastructure has a strong order book with six hybrid annuity projects valued at approx. Rs. 3,837 crores, providing long-term revenue visibility. Financial closure achieved for first two hybrid annuity projects; remaining four expected to close by early 2017, enabling construction revenue recognition starting FY17. Construction revenue for six HAM projects anticipated around Rs. 1,300-1,400 crores in FY17 and Rs. 1,500-1,600 crores in FY18. Equity infusion planned (~Rs. 380-400 crores total) to support project execution over FY17-FY19. Despite demonetization impact, operational toll reve

Current/ Expected Orderbook/ Pending Orders?

MEP Infrastructure has added six hybrid annuity model (HAM) projects, boosting long-term revenue visibility while staying asset-light. The hybrid annuity order book stands at around Rs. 3,837 crores, representing about 14.35% market share. The six HAM projects include Nagpur Ring Road 1 & 2, Arawali-Kante-Wakad, Talaja-Mahuva, and Mahuva-Kagavadar in Gujarat. Financial closure has been achieved for Nagpur 1 and 2; closure for Arawali-Kante-Wakad expected by late December 2016 or early January 2017. Total work across these six projects is approximately Rs. 3,500 crores EPC cost. Construction re

MEP Infrastructure Developers LtdQ2 FY17Transport Infrastructure

MEP Infrastructure Developers Ltd Q2 FY17 Earnings Call Analysis

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

Price: ₹0.64Market Cap: ₹12 CrSector: Transport Infrastructure

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

Capex

Yes

2 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

The company expects construction revenue from six hybrid annuity projects to start soon, with Nagpur 1 and 2 projects' construction beginning in December.
Estimated construction revenue for FY17 is around Rs. 1,300 to 1,400 crores, increasing to Rs. 1,500 to 1,600 crores in FY18.
The total work for these six projects is approximately Rs. 3,500 to Rs. 3,800 crores, to be completed over 2 to 2.5 years.
Addition of six hybrid annuity projects strengthens long-term revenue visibility with a current order book of about Rs. 3,837 crores.
The company maintains an asset-light philosophy while targeting a significant market share (14.35%) in hybrid annuity projects.
New awards under the hybrid annuity model by NHAI and Ministry of Road Transport indicate a growing market opportunity.

Margin guidance

Category 3

MEP Infrastructure has a strong order book with six hybrid annuity projects valued at approx. Rs. 3,837 crores, providing long-term revenue visibility.
Financial closure achieved for first two hybrid annuity projects; remaining four expected to close by early 2017, enabling construction revenue recognition starting FY17.
Construction revenue for six HAM projects anticipated around Rs. 1,300-1,400 crores in FY17 and Rs. 1,500-1,600 crores in FY18.
Equity infusion planned (~Rs. 380-400 crores total) to support project execution over FY17-FY19.
Despite demonetization impact, operational toll revenues remained stable; commercial traffic dip is recovering.
New accounting standards (Ind-AS) require quarterly provisioning for maintenance obligations, impacting current profitability but reflecting robust long-term policies.
The company aims to maintain asset-light growth with increasing revenues from toll and hybrid annuity projects, positioning for steady improvements in earnings and EPS over the medium term.

See what MEP Infrastructure Developers Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

Yes

The company does not foresee needing a Qualified Institutional Placement (QIP) currently for the balance four HAM projects; funding is expected through lenders or bankers. (Page 9)
A preferential or rights issue is being evaluated to raise the balance equity requirement for the HAM projects. (Page 9)
The company has already infused Rs. 120-130 crores equity and plans to infuse an additional Rs. 100-120 crores from promoters and sponsor company over the next 6-12 months for HAM projects. (Page 5)
Bankers have mandated approximately 50% of equity infusion upfront for the first two projects prior to disbursement and monetary disbursal is also prorated to equity contribution for some lenders. (Page 6)
Total equity requirement for the six HAM projects from the company is around Rs. 380-400 crores. (Page 5)
There is no mention of fresh debt raising other than ongoing sanction and disbursement from existing lenders. (Pages 9 & 15)

Order book

MEP Infrastructure has added six hybrid annuity model (HAM) projects, boosting long-term revenue visibility while staying asset-light.
The hybrid annuity order book stands at around Rs. 3,837 crores, representing about 14.35% market share.
The six HAM projects include Nagpur Ring Road 1 & 2, Arawali-Kante-Wakad, Talaja-Mahuva, and Mahuva-Kagavadar in Gujarat.
Financial closure has been achieved for Nagpur 1 and 2; closure for Arawali-Kante-Wakad expected by late December 2016 or early January 2017.
Total work across these six projects is approximately Rs. 3,500 crores EPC cost.
Construction revenue from these projects expected to start FY17 end, with projected revenues of Rs. 1,300-1,400 crores (first year) and Rs. 1,500-1,600 crores (second year).
Additional equity infusion planned via preferential/rights issue to meet equity requirements of Rs. 380-400 crores.
No immediate requirement for QIP for pending four projects; internal approvals available.

See what MEP Infrastructure Developers Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes

MEP Infrastructure is undertaking six HAM (Hybrid Annuity Model) projects with a total EPC (Engineering, Procurement, and Construction) value of around Rs. 3,500 to 3,800 crores, expected to be completed over 2 to 2.5 years.
The equity requirement for these six projects is approximately Rs. 380 to 400 crores, with Rs. 120-130 crores already infused; additional equity infusion of Rs. 100-120 crores is planned over the next 6 to 12 months.
Financial closure for Nagpur 1 and 2 projects has been completed; financial closure for Arawali-Kante-Wakad and Talaja-Mahuva to be completed by late 2016 or early 2017.
Construction revenue from HAM projects is expected to start with Nagpur projects from December 2016; annualized construction revenue could be Rs. 1,300-1,400 crores in FY17 and Rs. 1,500-1,600 crores in FY18.
MEP is evaluating strategic partnerships for TOT (Toll Operate Transfer) projects in response to government monetization plans and potential bundling of around 75 projects.

Track MEP Infrastructure Developers Ltd — get its next earnings analysis in your feed

How does MEP Infrastructure Developers Ltd rank vs peers in Transport Infrastructure?

Pro feature

ThisMEP Infrastructure Developers Ltd

Rev 3Mar 3

See where MEP Infrastructure Developers Ltd sits in Transport InfrastructureSee which companies these are, and every other name in the sector.Open rankings

How does MEP Infrastructure Developers Ltd rank in Transport Infrastructure?

Compare MEP Infrastructure Developers Ltd against every Transport Infrastructure company (Q2 FY17) on revenue, margins and earnings-call signals.

View Transport Infrastructure leaderboard →

What MEP Infrastructure Developers Ltd's management said in earlier quarters

Others in Transport Infrastructure this season

Cube Highways Trust (Q2 FY27)
The Trust has raised ₹1,150 crore through a 7.50% coupon NCD with a 5-year tenor as part of its broader liability management and to fund acquisitions. Key…
GMR Airports Ltd (Q2 FY27)
Q2FY27 Revenue from Operations: INR 41.0 billion, up 11.6% YoY (Page 54) . Key investor presentation takeaways from GMR Airports Ltd's Q2 FY27 investor presenta
Adani Ports & Special Economic Zone Ltd (Q2 FY27)
Q2 FY27 revenue: ₹11,340 Cr, up 24% YoY (Page 18) . Key investor presentation takeaways from Adani Ports & Special Economic Zone Ltd's Q2 FY27 investor presenta
JSW Infrastructure Ltd (Q2 FY27)
As of Q2 FY27, JSW Infrastructure Limited has outstanding Purchase Orders (POs) worth approximately INR 6,000 crores. Key concall takeaways from JSW…

Compare:vs Adani Ports & Special Economic Zone Ltd vs GMR Airports Ltd vs JSW Infrastructure Ltd

🔎 Who's planning the most growth?

Companies ranked by management's own guidance — revenue, margins, capex and order book, from every earnings call in India.

See rankings →

MEP Infrastructure Developers Ltd Q2 FY17 Earnings Call Analysis

Revenue guidance

Fundraise plans

Capex plans

How does MEP Infrastructure Developers Ltd rank in Transport Infrastructure?

Continue your research

What MEP Infrastructure Developers Ltd's management said in earlier quarters

Others in Transport Infrastructure this season