RKEC Projects Q4 FY18 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
Yes
Order
Yes
Capex
Yes
3 of 5 growth signals are positive.
Full analysisRevenue guidance
Category 2- The company expects a 20% to 25% increase in revenue every year. (Page 10)
- For FY19, a growth of around 30% to 35% in revenue is anticipated. (Page 10)
- Order book is expected to reach around Rs. 1,300 crores by the third quarter of FY19. (Page 12)
- Execution of Rs. 300 crores from the Rs. 820 crores order book planned in FY19, with the balance carried forward. (Page 17)
- Additional order inflows of approximately Rs. 500 crores expected, targeting a total order book of around Rs. 1,000 crores by the end of FY19. (Page 17)
- The company expects to maintain PAT margins between 7% to 9% through FY19 despite CAPEX and shift in project mix. (Page 18)
- CAPEX planned in the range of Rs. 50 to 60 crores to support growth, especially in the bridge segment. (Page 16-18)
See what RKEC Projects management said on margin guidance — free account, 30 seconds.
Fundraise plans
Yes- No current plans for raising further equity such as Follow-on Public Offer (FPO). (Page 7)
- For financial assistance, the company may have to pledge promoter shares as collateral to banks due to tightening bank norms; without collateral, banks are not giving bank guarantees or financial assistance. (Page 7)
- Company is approaching private sector banks and Non-Banking Financial Companies (NBFCs) for cash credit limits and banking facilities, aiming for better interest rates. (Page 15)
- Credit limits are being enhanced with existing banks (e.g., Vijaya Bank) to support increased working capital requirements. (Page 12)
- No explicit mention of new debt issuance, but working capital limits and bank guarantees are being expanded. (Pages 12, 15)
See what RKEC Projects management said on order book — free account, 30 seconds.
Capex plans
Yes- Current year CAPEX planned around Rs. 35 crores to Rs. 40 crores (Page 7).
- CAPEX might increase to Rs. 50 crores to Rs. 60 crores as the company enters the bridge segment, requiring purchase of equipment and machinery (Pages 16-17).
- CAPEX is driven by ongoing and upcoming EPC projects, dependent on design specifics, especially span length which affects equipment costs (Page 17).
- Strategy involves striking a balance between owning equipment and hiring to optimize margins (Page 17).
- Some equipment costs are mitigated by in-house development of machinery, reducing costs by 30-40% compared to purchasing externally (Page 19).
- Potential strategic moves include negotiations with professionals for R&D and technology upgrade (Page 8).
Track RKEC Projects — get its next earnings analysis in your feed
Margin guidance
Category 3- Revenue growth expected at 20% to 25% annually, with 30%-35% growth projected for FY19.
- PAT margin guidance maintained between 7% to 9%.
- Order book expected to rise to around Rs. 1,300 crores by FY19 Q3.
- Execution order book of approx. Rs. 1,000 crores by FY19 end with bridges constituting Rs. 600-700 crores.
- New growth segment in bridges with expected Rs. 50-60 crores CAPEX for equipment.
- Margins expected to be maintained despite CAPEX and higher equipment hire, supported by better project execution and completion.
- Government payments stable with some delays, expected to improve so profitability will be sustained.
- Earnings growth will benefit from completion bonuses on ongoing projects, with advances and receivables management improving cash flow.
- No dilution expected; capital raising not currently planned, with financing done through pledging shares if needed.
Order book
Yes- Current confirmed order book: Approximately Rs. 826 crores, including Rs. 500 crores with a Chinese partner.
- Expected execution of Rs. 300 crores in FY19, reducing unexecuted orders to around Rs. 500 crores.
- Additional orders expected: Around Rs. 500 crores; total order book expected to reach Rs. 1,000 crores by end of FY19.
- Breakdown of unexecuted order book by end FY19: Rs. 600-700 crores in bridges, 75-80% from Central Government, 20-25% State Government.
- New bids under submission: Around Rs. 1,300 crores with an expected success rate of 40-50%.
- Focus on bridge segment with Rs. 1,000 crores of new bridge projects expected this year.
- Drone subsidiary received Rs. 8.07 crores orders, expecting additional Rs. 10 crores.
How does RKEC Projects rank vs peers in Construction?
Pro featureHow does RKEC Projects rank in Construction?
Compare RKEC Projects against every Construction company (Q4 FY18) on revenue, margins and earnings-call signals.
Continue your research
What RKEC Projects's management said in earlier quarters
Others in Construction this season
- Techno Elec.Engg (Q1 FY27)
Revenue grew by 25% this quarter; order inflow momentum is strong with an order book around INR11,000 crores, providing good visibility. Key concall takeaways…
- Globe Civil Projects Ltd (Q1 FY27)
Current order book is around INR 700 crores as of August 2026. Key concall takeaways from Globe Civil Projects Ltd's Q1 FY27 earnings call — and how it ranks…
- Power Mech Proj. (Q1 FY27)
Power plant construction alone to grow modestly by 5%-7% annually due to capacity limits. Key concall takeaways from Power Mech Projects Ltd's Q1 FY27 earnings…
- MBL Infrast (Q3 FY17)
As of December 31, 2016, the total order book stood at Rs 6,243.52 crores (Page 12). Key concall takeaways from MBL Infrast's Q3 FY17 earnings call — and how…