RKEC Projects

- The company aims to regain growth with turnover reaching Rs. 300 crores in FY 21-22. - Plan to stabilize turnover between Rs. 300 to 500 crores over the next three years. - After stabilization, the company intends to scale up to Rs. 1000 crores turnover. - They anticipate opening 3-4 major projects sized around Rs. 200 crores each in the current financial year. - The company has bid for two projects totaling around Rs. 1000 crores, expecting results within a month. - Additional order intake of Rs. 600 to 1000 crores is possible in the current year, subject to enhancement of credit limits. - Growth will be supported by resolving working capital constraints and availability of bank credit lines. - Management prefers steady growth by developing internal talent and strong foundation before rapid scaling.

- The company is currently practically debt-free. - A planned capital expenditure (capex) of around ₹50 crores is expected, which may lead to some debt inflow. - Management mentioned no significant increase in debt is currently planned; debt-equity ratio expected to remain more or less stable, likely below 1. - The company is arranging working capital through multiple banking sources, including applying for annuity facilities and increasing credit limits. - No explicit mention of raising equity capital in the discussed transcript. - Focus is on managing working capital constraints and securing adequate bank funding to support business growth. - Concall discussions indicate readiness to increase credit limits to accommodate higher order bidding capacity.

- The company plans a capital expenditure (capex) of around ₹50 crores. - This capex is intended to support new jobs and business growth. - Current fixed assets have been flat at about ₹55 crores for the past two years. - The existing asset base is comfortable for present operations but will require enhancement with new projects. - The company is practically debt-free, so funding for this capex is not expected to be an issue. - Capex will include own manufacturing of equipment to maintain margins and improve operational efficiency. - The strategic focus is on optimizing operational capabilities and efficient project management to capture industry growth.

- The company plans to stabilize turnover between ₹300-500 crores for about three years before scaling up further towards ₹1000 crores (Page 9). - They expect growth in turnover to lead to slightly reduced profit percentages but do not anticipate substantial drops in EBITDA margins in the near term (Pages 9-10). - The EBITDA margin target of 15-16% is considered sustainable given current conditions (Page 7). - Profit after tax saw a drop in FY21 mainly due to lower turnover and sustained expenditure levels; however, the company aims for better profitability as turnover recovers (Page 4). - The company is confident of mitigating working capital constraints and improving turnover and profitability in FY22 and onwards (Pages 4, 6). - Planned capex of around ₹50 crores is expected to support growth without debt concerns, which could positively impact future earnings (Pages 11, 14).

- As of 31 March 2021, the unexecuted order book stood at Rs. 883 crores. - Post 1 April 2021, a fresh order of Rs. 134 crores was received, totaling approximately Rs. 1017 crores in orders on hand. - Major ongoing projects include: - Farakka project with unexecuted order value of around Rs. 288 crores. - Jetty construction for Indian Navy at Visakhapatnam (approx. Rs. 140 crores). - Two projects at Haldia Dock Complex (approx. Rs. 200 crores combined). - Fisheries harbor construction at Kakinada, Uppada (Rs. 134 crores). - Project in Honnavar, Karnataka (approx. Rs. 75 crores). - The company expects to complete 8 to 9 projects within the current financial year and can take additional orders worth Rs. 600 to 700 crores given current resource availability and credit enhancement. - Two large bids totaling around Rs. 1000 crores are under technical evaluation, with outcomes expected within one to two months. - The company is actively bidding for more projects worth around Rs. 600 crores.