RPP Infra Projects LtdQ4 FY18Construction

RPP Infra Projects Ltd

Q4 FY18 Earnings Call Analysis

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Revenue guidance

Category 3

→FY2017 revenue projected at around Rs. 400 Crores but likely to achieve Rs. 340-350 Crores due to demonetization impact.
→FY2018 revenue expected to grow to approximately Rs. 450 Crores.
→Order book expected to grow from Rs. 784 Crores (Dec 2016) to around Rs. 900-1000 Crores by April 2017.
→Additional Rs. 300 Crores worth of L1 orders likely to be awarded, supporting growth.
→Focus on increasing order book gradually, targeting Rs. 1000 Crores by April 2017 and potential doubling thereafter.
→Business growth driven primarily by infrastructure and water segments, which typically yield higher margins (infra 12-15%, water 15-20%).
→Participation in government schemes (AMRUT, PMKSY, PMGSY) expected to sustain order inflows.
→Expansion through joint ventures and increased bidding in larger projects anticipated.
→EBITDA margins expected to be maintained at 14-15%.

Category 3

→Revenue for FY2017 was projected at Rs. 400 Crores but actual expected to reach around Rs. 340-350 Crores due to demonetization impact.
→Revenue for FY2018 is expected to grow to approximately Rs. 450 Crores.
→EBITDA margins are consistent at around 14-15%, expected to be maintained in coming years.
→The company aims to grow order book to Rs. 900-1000 Crores by April 2017 and further increase it beyond Rs. 1000 Crores over the next two years.
→Growth driven mainly by infrastructure and water management projects with higher margins (12-20%), less focus on low-margin building projects.
→Profit after tax showed robust 40% YoY growth in Q3 FY2017, indicating potential for continued profit growth.
→Fundraising plans will be considered if order book crosses Rs. 1000 Crores to support expansion.
→Management confident about securing quality projects and improving collections, which will further support earnings growth.

Get access to all 5 sections — revenue, margin, fundraise, orderbook, and capex — for RPP Infra Projects Ltd and 1,400+ other companies.

Yes

→Fundraising plans are considered if the order book crosses Rs. 1000 Crores.
→Currently, the order book is significantly lower; thus, no immediate fundraising is planned.
→Increasing the order book by 50% or more to cross this threshold will trigger the need for fund raising.
→No specific timeline or detailed plan for debt or equity fundraising was provided.
→The company aims to maintain quality order inflow before considering fund raising.
→Capex requirements will rise moderately with the doubling of the order book but will be managed within Rs. 10-25 Crores, reducing the immediate need for large fund raising.

Yes

→Current order book as of December 2016: Approximately Rs. 784 Crores.
→Order book composition: 41% infra, 26% water management, 33% building.
→Around Rs. 300 Crores worth of orders are in L1 status.
→Expectation to close FY2017 with an order book of around Rs. 1,000 Crores.
→By April end 2017, expected order book to grow to around Rs. 900 to 1,000 Crores.
→Participated in additional L1 projects worth around Rs. 200 Crores, including TANGEDCO (Rs. 350 Crores, L1) and other projects in Tamil Nadu and Karnataka.
→Order execution timeline ranges from 12 to 24 months.
→Company aims to increase the order book gradually, focusing on quality and profitable projects.
→Plans to raise funds if order book crosses Rs. 1,000 Crores for further expansion.

Yes

→Annual capex typically ranges from Rs. 3 to 5 Crores to replace old machinery.
→For the current year, capex increased to Rs. 5 to 8 Crores due to participation in a large concrete road project requiring specialized machinery (concrete paver).
→If the order book doubles from Rs. 750 Crores to Rs. 1500 Crores, incremental capex would be Rs. 10 to 25 Crores depending on project type: pipeline projects require minimal capex, while concrete road and building projects could need an additional Rs. 5 to 10 Crores.
→Assets purchased specifically for projects not regularly used are sold off or leased out, e.g., a filing rig was sold after one year due to lack of suitable projects.
→Strategic JV planned with HUNAN State (74% HUNAN, 26% R.P.P.) to bid on larger infrastructure projects in Amravathi, expanding bidding capacity beyond Rs. 100 Crores as a local partner with access to their equipment and expertise.

How does RPP Infra Projects Ltd rank vs peers in Construction?

Pro feature

1RPP Infra Projects Ltd

Rev 3Mar 3

See full Construction sector rankings

Want more stocks like RPP Infra Projects Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.