JMC reported its Q4FY17 results. Revenue of the company grew by 6% YoY which is above our expectations of 3.0% based on better execution both on infrastructure and B&F segments. The overall proportion of infrastructure and governmet orders (non Pvt. B&F) segment has reached to 52% of orderbacklog as compare to 33% in FY16. EBITDA grew by 8.4% against our expectations of 6% due to better control on cost. EBITDA margins came at 8.5%, improved by 20 bps on YoY basis. Interest costs fell by 30% YoY due to fall in cost of capital and reduction of debt by INR 48 cr to INR 570 cr. There was overall 110 bps fall in interest cost for full year. Reported PAT increased by 52% in Q4FY17 majorly led by fall in interest costs.
For the full year of FY17, the revenue INR 2,328 cr (-3%, YoY) due to slow execution in first nine months of FY17 as high end real estate customers are delaying projects and demonetization aggrevate the execution further. EBITDA fell INR 211 crore (-1%, YoY) due to fall in topline while EBITDA margins improved by 20 bps on YoY. Interest costs fell to INR 84 crore (-130 bps, YoY) due to fall in cost of capital and reduction of debt. PAT INR 59 crore (+37%, YoY) majorly impacted by fall in interest costs.
Order book INR 7,000 cr (book-to-bill ratio 3.4x) and L1 in project worth of INR 650 crore
JMC has orderbacklog of INR 7,000 cr where book-to-bill ratio increased to 3.5x (from 3.0x, YoY) primarily led by fall in execution. Sector-wise breakup is Pvt B&F 48% & Govt. B&F 17%, infrastructure 14%, industrials 13% and others 10%. JMC reported FY17, strong order inflow of INR 3,780 cr divided into infrastructure and B&F (50:50) while having L1 positions in INR 650 cr. Management is confident of achieving 15%-20% reveue growth and believes order-iflow would be I the range of INR 4000-4500 cr in FY18E.
Collective Toll collections of INR 48 lacs/ day was below breakeven levels in four BOT assets
JMC’s BOT portfolio is collecting INR 48 lacs per day (vs. INR 41 lacs in FY16) still below to breakeven level (INR 55 lakhs/ day). The company already has received 3% toll hike in month of April and expecs traffic growth (3%-4%) to improve with the increase in economic activities. JMC from standalone operation already invested INR 660 cr in four BOT projedcts and further require to invest INR 40 cr in FY19E which is higher than our expectatipons.