Earnings Call Transcript of Discussion between Management and Analysts on Q3FY20 Performance
Opening Remarks
Revenues for the quarter at Rs.3073 crore have grown by around 16% vis-à-vis Q3 FY19. With an EBITDA of 319 crore and a margin of 10.4%. PBT has grown at 19% Y-o-Y with PBT margins improving from 6.4% to 6.6%. With improvement in interest cost in absolute terms as well as a percentage to sales. PAT has grown by 29% Y-o-Y with PAT margin improving to 4.7% vis-à-vis 4.2%. We are declared an interim dividend of 170% of the face value at Rs.3.40 per share on a face value of Rs.2, a total outflow of around 105 crore including dividend distribution tax.
Y-T-D order inflows have touched Rs.9820 crore, our order book as on 31st December is at 22,011 crore with an L1 position of around 2500 crore. The L1 is majorly from T&D business. T&D revenues including SAE continue growth traction at 21.5%, majorly backed by the International and SAE Brazil EPC execution. T&D tendering pipeline especially power grid continues to be under pressure. However, we are witnessing a resurgence in the Middle East tendering activity. Railways continue to grow with a revenue of +600 crore for the quarter.
We are on track for a fully railway revenues of around 2700 crore. At the exit of this year we expect the railways margins to improve to double digit with the new inflows from overhead electrification as well as composite and ROB, RUB jobs. We have the railway order book at 6860 crore now. Our civil business has not grown as anticipated and faced headwinds on account of generally prevailing muted industrial CAPEX cycle in India and challenges faced by the reality sector.
However, we have now seen some flow of orders in industrial and real estate sectors recently. Defense segment is also picking up momentum. Civil order book has now scaled up significantly to +2400 crore with Delhi Metro and Kochi Metro orders. Execution of Delhi and Kochi Metros has commenced and is progressing well. Significant revenue contribution from the metro projects is expected from the next year start and maybe some part in this quarter also. Cable business has witnessed revenue slowdown due to lower order intake and impact of commodity prices. Execution of existing order book for both solar and smart infra is on track. We have a few L1 positions in solar and smart infra businesses respectively.
Total borrowings plus interest bearing acceptances have reduced significantly by Rs.684 crore over 31st December 2018. Despite a 16% revenue growth on account of important NWC based. This has enabled a reduction in interest cost for Q3 FY20 in absolute terms of approximately 5%, interest as a percentage to sales has reduced from 3.2% to 2.6% in this quarter. Saudi receivable position has normalized with no overdue position as on date. We have received approximately 680 crore from Saudi till date.
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