ivrcl trasncript

8/7/2019 ivrcl trasncript

1/46

Company Name: IVRCL Infrastructures

Company Ticker: IVRC IN

Date: 2011-02-14

Event Description: Q3 2011 Earnings Call

Market Cap: 19,224.24

Current PX: 72

YTD Change($): -56.55

YTD Change(%): -43.991

Bloomberg Estimates - EPS

Current Quarter: N.A.

Current Year: 9.090

Bloomberg Estimates - Sales

Current Quarter: 20795.000

Current Year: 66717.750

Page 1 of 46

Q3 2011 Earnings Call

Company Participants E. Sudhir Reddy, Chairman and Managing Director

Corporate Participant

S Chandra Sekaran, Executive Director, Hindustan Dorr-Oliver

S. Chandra Sekaran

Ram Kumar, Financial Controller

Balarami Reddy, Director of Finance

Other Participants

Rupa Shah Deepal Delivala

Pramod Amthe

Sanjeev Zarbade

Ashutosh Narkar

Abhinav Bhandari

Vaibhav Jain

Jitesh Bhanot

Ashish Shah

Atul Rastogi

Analyst

Vishal Sharma

Madan Gopal

Vibhor Singhal

Naveen Jain

Tina Virmani

Shailesh Kanani

Nimit Shah

Presentation

Operator

Ladies and gentlemen, good afternoon and welcome to the Q3 FY11 Results Conference Call for IVRCL, hosted by

Prabhudas Lilladher. As a reminder, all participants lines will be in the listen-only mode. And there will be anopportunity for you to ask questions at the end of today's presentation. [Operator Instructions]. Please note that this

conference is being recorded.

Joining us on the call today from Prabhudas Lilladher are Ms. Amisha Vora and Mr. Dilip Bhat, Joint Managing

Director, along with Ms. Rupa Shah.

At this time, I would like to hand the conference over to Ms. Shah. Thank you and over to you.

Rupa Shah


2/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 2 of 46

Yeah. Thank Farah. Good afternoon, everyone and welcome to the IVRCL's Group third quarter FY11 conference call.

We have with us, Mr. Sudhir Reddy, Managing Director; Mr. Balarami Reddy, Director, Finance; Mr. S.C. Sekaran,

HDO, Director and Mr. Ram Kumar, VP Corporate Affairs & Strategy.

We shall begin the call with a short briefing by Mr. Sudhir Reddy, and then proceed to Q&A. Over to you, sir.

E. Sudhir Reddy, Chairman and Managing Director

Thank you. Good morning everybody. This is Sudhir. I am joining you from Bangalore.

I know as far as the stock market is concerned, I guess it's a pretty bad times. But we can only watch what happens in

the stock market, but it's something we had there. But where we can really help you is probably put in our best efforts

to come out with the best possible results.

We tried and the last two quarters where the -- seem to have a bad and for the first time in the last two quarters, we're

heading in our company. We had a slow down in the growth, because we've been used to growing at about 40-45%, butthis particular quarter I think our revenues have match up, even though the monsoon got extended in a little bit more for

another -- some revenues there.

But that's not a worry at all for us. The good part is we have gone ahead and we bid for jobs for the last three quarters,

we are back close to about 10,000 crores below the walls which we are --, another 20,000 crores which was -- start to

be have to open.

And if you typically grow at -- you will get a fairly decent number to deal with this fiscal year. And I guess we will

even close out by somewhere anywhere between 24,000 to 26,000 crores -- which should typically give us a decent

earnings but having learned the lesson in the last two years of going by the uncertainties in the country, let it be the

right way or political uncertainty or too much of --, what have you not.

There is not one reason; there should be lot of reasons. On our own restructuring process which we are also looking

into. We have now managed to break into a couple of international countries there. We are not trying to be smart. Weare trying to do very, very low and very --, high volume kind of jobs, it's going to be typically...it might be just

advanced of --. It could be low-cost housing in those kind of -- what we are looking at.

We are maintaining our -- rate close to anywhere between 15 to 20%, depending on zone-to-zone. And next three

months to six months, I guess we'll comfortably meet anywhere between 30,000 to 40,000 crores. These are the kind of

works what we have...in fact this is excluding, it actually reminds, this is excluding BOT in IVRCL. These are just pure

play IVRCL game.

And IVRCL as you know, we have in the last week came out with certain numbers or for some of you who have missed

out, we get close for 1,412 crores of top-line revenue and we have 43 crores deals of profits.

And there is some provisions and all which I'll discussed my colleagues, if you -- the CFO of the company, Mr.

Balarami Reddy and Ram Kumar to brief you while when I hand over this particular thing to them. they'll gives you the

interest cost or the current working capital. These are the things which you normally have.

And Andhra Pradesh which is a Andhra Pradesh Government and for which was the source point when you look at

IVRCL, I guess all of you look at IVRCL Andhra Pradesh, and Andhra Pradesh is IVRCL. Unfortunately, everyone of

us in this country have works in Andhra Pradesh but we feel to have been, -- seems to be answering us --.

While in Andhra Pradesh in the last quarter, we did about 100 crores of revenue. And in the nine months, we have done

about Rs. 250 crore of AP total number, this is what we have projected. And if you go in AP, it's close to about Rs. 51

crore. The kind of orders which are still pending to be completed near about 3,000 crores which includes our own job

plus, the back to back contracted job.


3/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 3 of 46

So again, there is store problems there. We are pretty comfortable in that particular --. So we will have this increasing

effect on the countries, government really picks up. -- the margins would be so much more better but we are not taking

that into consideration at all.Moving back into order book again, out of this it should be 24 or 25,000 crores -- orders and this year we have to keep

on changing in water and we have got 15% in growth and 10% in power which includes -- 20% in industrial building

and industrial structure.

This is one area where again we are moving. When we used the term industrial structures, we are addressing in the last

couple of years into refineries, now I guess you will hear us, you will definitely hear us doing couple of large jobs for

couple of large steel plants which we are going to happen both in the south and in the east. We are hoping for some of

this work to come about like I said AP Government still about 3,000 crores, Government of Maharashtra, Maharashtra

will be about 30% of --.

Coming down to IVRCL, Assets and Holding had a fantastic year, good construction status right now. All the roads are

fantastic, freights available for construction and as far as the investment is concerned this year we just have to invest

about Rs. 27 crores. Next year we need to invest close about Rs. 350 crores --.

So there is no worry in that front. This are some of the doubts that we had and there is no worries in that. We are

looking into couple of revenues to raise money for next year. We have one full year for that.

And we are quite hopeful, we are working out which -- couple of this projects. And also in IVRCL as I said, our Super

Thermal Power Projects has really taken off. It's almost about 106 booking plots have been booked and advance is

collected.

The registration has started. It's just about three or four registration took place, but 80% of that plot sold will not come

under construction, this is the Phase I. Seeing the demand in the Phase I, we will be opening out the Phase II and Phase

III. And so we will continue, so we won't do any external fund rising in IVRCL or IVRCL SS or Hindustan Dorr -

Oliver in this next or in this quarter. We would all leave at that. We are very, very comfortable in that particular period.

And I would leave you with that. And I would like to take questions and I will have Mr. Balaram and Mr. Ram Kumar

answering you on the financial side. I'm available right through the call, Sekaran from HDO, he is available right

through the call.

Hindustan Dorr-Oliver again has done some fantastic work. You keep hearing lot of rumors of Hindustan Dorr-Oliver

sale, it is not for sale. Right now, we are moving well ahead and Hindustan Dorr-Oliver and -- in England have moved

quite well. There were will be some good news coming out from England, but for that, another two quarters are needed

for moving aggressively in nuclear.

Hindustan Dorr especially have more back -- Rs.104 crores for the work in the nuclear manufacturing side. Forget

the...I'm not talking about EPC. EPC is at -- people but in manufacturing, they are more than 350 crores.

So Hindustan Dorr has moved quite well in that. Hindustan Dorr is also known as now in Indian, we see iron ore

verification, that kind of verification. So, every year, we are adding a new qualification. Add to that, thanks to --. I

think we will do quite well and make a good entry into...in the nuclear side.

And again -- support, we will take it for the mining side, wherein we would be bidding for close to more than 100

mining points would required in this country in the next one or two years which about five, I think we are going to bid

for Hindustan Dorr, one we have already bid for...


-- operation.


4/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 4 of 46


On the -- gold mines and those things will continue. So Sekaran can take a call separately on that and he will do it. AndI would appreciate and next time I think we would like to take a separate call and discussed for IVRCL Assets &

Holdings and for Hindustan Dorr-Oliver, all three are different companies. We can't really trap ourselves into one call

but this time, let's have it this way but next time onwards I guess, we would like to spend more time with you on each

of these companies separately.

Thank you very much.

Rupa Shah

Farah, can we get to Q&A.

Questions And AnswersOperator

Sure. Ladies and gentlemen, we will now begin with the question-and-answer session. [Operator Instructions]. Our first

question is from the line of Deepal Delivala from CITI. Please go ahead.

Deepal Delivala

Yeah. Good afternoon, everyone. My first question is on order inflow till date. How much have we got so far in

IVRCL?


In IVRCL, we have around 7,500 crores of orders backed till date, this includes L1 also.

Deepal Delivala

And this includes all your BOT orders as well?


Yeah, only to the extent of a construction portion in that.

Deepal Delivala

Okay. So 7,000 and what is our target for this year?


We should probably close this year anywhere around 24 to 25,000 crores of order book side.


5/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 5 of 46

Deepal Delivala

Okay. Sir, in terms of your guidance for the current year, what kind of top-line growth should we look for over lastyear?


This year in the sense, you are talking for...

Deepal Delivala

FY11.

Corporate ParticipantFY11? We continue to maintain our guidance. We should close this year around to 6,250.

Deepal Delivala

Okay. Sir, in terms of our current gross debt. How much is the gross debt?


2,200 crores.

Deepal Delivala

2,200 crores?


Yeah.

Deepal Delivala

And any view on the margins?


Margins at EBITDA level?

Deepal Delivala

Yes.


6/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 6 of 46


It should range between 9.5 to 10%, depending on the projects mix, the margins could vary a little bit.

Deepal Delivala

Okay. If you could just give the broad balance sheet numbers in terms of the working capital?


Working capital will be around 2,000 crores, excluding the tax to the other subsidiaries which we would have given.

Deepal Delivala

So, how much would be the debt of the subsidiary?


450 crores.

Deepal Delivala

Okay. This is net current working capital?

Corporate ParticipantCorrect.

Deepal Delivala

And cash on book?


It will be around 75 to 80 crores.

Deepal Delivala

Okay. So from IVRCL, we won't see any investments into the BOT subsidiaries over the next two years, right?


Absolutely not. That is one of the reasons why we de-merged and made a separate company out of it. So you won't see

any investment from IVRCL. Probably, some short-term debt will be provided or something like that, but there won't

be any investment from IVRCL.


7/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 7 of 46

Deepal Delivala

Okay, sir. Thank you so much. I'll come back with more questions if I have any.

Operator

Thank you. Our next question is from the line of Pramod Amthe from RBS. Please go ahead.

Pramod Amthe

Hi. This is with regard to the...your guidance again on the top-line. Would you give some confidence why you are

looking at such a...even though this quarter you have done almost a 30% quarter-on-quarter rise. What is the confidence

driving the fourth quarter rise of almost over 100% on a quarterly basis?


If you look at last year fourth quarter, we almost did around 2,000 crores of revenue. And if you look at why we were

not able to do in the previous quarter, that is the second quarter, it's mainly because of rains.

So, typically fourth quarter is a pre-shift period where you are not effected by rains, and the weather is more favorable

where you won't find costings come everywhere for laborers not to work. So, typically fourth quarter is the better

quarter compared to the other quarters.

Pramod Amthe

And would you give, how much was lower contribution in this quarter and nine months. And how it could shape up,

might be going forward, as you have more BOTs?


Growth contribution will be around 225 crores in this quarter.

Pramod Amthe

And nine months?

Corporate ParticipantIn the nine month, just a second, I'll give you the number. Yeah, around 450 crores.

Pramod Amthe

And any thought, how it should shape up considering the BOTs which you have in-hand?



8/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 8 of 46

See, in the initial period of any road, the first six months is more of planning which has to go in. so you won't find

much of revenues coming in. which is a period which we normally try and ensure that this is the same period in which

we do the financial closure. Subsequent to that, it's a low value job which is network and stuff like that will happen.Towards the middle of the project, there should be higher revenue which will come in. And the end of the project

almost 20-25% of the revenues will start coming in which is high value item which is the Bitumen portion of the

project. So, this is how typically a road project will start up in terms of revenues. So, we are in three projects, we are in

the first phase currently.

Pramod Amthe

Okay.


And three other projects, we are in the very initial stages where the planning is happening currently where only the

financial closure portion is being started now. So probably, next year will be a better year for roads overall. And

towards the end of next year, we will start seeing the Bitumen also being led.

Pramod Amthe

So because last two, three years you have been ranging in the...from 13-14% of your total sales coming from roads?


No, we have done only less than...we have been doing around single-digits numbers in roads, because most of the BOT

projects have been backed only in the last one year. Last year, road contribution was very minimal for us.

Pramod Amthe

Do you think that changing drastically?


It may not changed drastically but maximum you will end up seeing is around 17 to 18% of the contribution will come

from roads, because other sectors are also growing equally well.

Pramod Amthe

And last question is even though you're sales traction is going to improve. What's the thought on receivables

considering the fourth quarter is usually the budget clearance and all happens. So, any relief expected or you feel

more...it will be worst than the current quarter in terms of receivable side?


See, the receivables are almost similar levels at the previous quarter. So there is nothing which has changed drastically.

And see it should not be generalized that one client could lead to the same similar kind of a thing everywhere.


9/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 9 of 46

And in fact, the best client for us is actually Andhra, we have been able to see the receivables very low there. So it's all

about risk management. So, you have to ensure that you do projects faster where the clients have money. And there

could be some locations or some regions or some projects specifically where we might not have pre-qualifications.

So, we might, little bit aggressively, we might take up work in such a way that it could be backed in that kind of

receivables for us. So, it's a balancing game which we need to take for growth also.


It will be 75 to 90 days of the third quarter turnover will be receivables, not more than that.

Pramod Amthe

Okay, sure. Thanks and all the best.

Operator

Thank you. Our next question is from the line of Sanjeev Zarbade from Kotak Securities. Please go ahead.

Sanjeev Zarbade

Hi. Yes, sir. My question is for Mr. Sekaran for Hindustan Dorr-Oliver. Basically in our last previous con-call, in

second quarter, you had guided for around 15 to 20 billion kind of a order backlog as an exit order backlog for FY11.

So how are we positioned as of now given that almost 1.5, the quarter is already behind?

S Chandra Sekaran, Executive Director, Hindustan Dorr-Oliver

Yeah. I mean see during the year now, I mean, we have got orders worth about 750 crores. Out of which, L1 orders are

about 300 crores. So, even as on date, after taking the revenue of about 750 crores what we have done, still our order

book is around 1,300 crores.

Sanjeev Zarbade

Yeah. And how...for this current quarter the order...?

S. Chandra Sekaran

Current quarter again, definitely as on date, our pending grids to the various customers on the various segment is to the

tune of around 6,000 crores. So, we are very positive in the next 1.5 months. We should be getting orders, I mean worth

about at least minimum. So, we have 700 to 800 crores.


And some good orders, -- probably you need to also talk about your manufacturing getting some...


10/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 10 of 46

S. Chandra Sekaran

Yeah, in the manufacturing front, we have been able to make a big headway on that. Last year for example, 1st ofApril, we opened our order book was around 80 crores. Probably this year, we have already backed about 160 crores of

orders, only for direct manufacturing for -- which is inclusive of Nuclear for Corporation. We got orders worth about

85 crores.

Sanjeev Zarbade

Okay. In this 1,300 crore, how much is the manufacturing shares, sir?

S. Chandra Sekaran

That is approximately around 215 crores is the manufacturing orders.

Sanjeev Zarbade

215 crores.

S. Chandra Sekaran

Yeah.

Sanjeev Zarbade

Okay. So basically what we are seeing is that in the first nine months, our order intake on a quarterly basis averagearound 250 to 220 crores. So, in the fourth quarter that we are currently in, it should be substantially better.


Yeah, it will be, definitely be better, because we have pending bids, some of the projects got delayed like Uranium

expansion project got delayed. Uranium, Gogi project got delayed. All of them all are likely to break open in this year,

in this quarter. At least one of the Uranium projects will get opened this quarter.

Over and above, we have bidded for the nuclear jobs and with some more jobs with the I mean Vedanta, Zambia we

have bidded for a job. Vietnam, we have bidded for a paper and pulp job. So, all these things should get analyzed

before the year end.

Sanjeev Zarbade

And, sir the other expenditure is down for the quarter. Even on a sequential basis, it is substantially lower. Any reason

particular, sir?


Ram?


11/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 11 of 46

Sanjeev Zarbade

Other expenditure.


Yeah I mean, Ram.

Ram Kumar, Financial Controller

The other expenditure, last quarter if you take, we had some provisions which we were making in the books earlier.

They were no longer required. So that is not done in the books now. That's all.

Sanjeev ZarbadeAnd sir, the interest expenses are also up sequentially from 4 crore to 6 crore without much increase in turnover?


Two reasons. One is our...the number has been going up. So, we are now fully utilizing our working capital limit to the

extent of 200 crores. Our interest rates has gone up from 9.5 to 10.5% in HDO.

Sanjeev Zarbade

Okay. Okay, sir, that's it from my side. And all the best. Thank you.


Thank you.

Operator

Thank you. Our next question is from the line of Ashutosh Narkar from HSBC. Please go ahead.

Ashutosh Narkar

Yeah, hi. I have two questions on the working capital. One is out of this 2,000 crores, can I get a sense about what isthe debtors?


1,900 crores.

Ashutosh Narkar


12/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 12 of 46

Yeah. Ram just one more question. In Q1, you guys have said that around, your total exposure to Andhra was around

3,700 crores and right now it is close to 3,000. So have you seen any order cancellations in the Andhra segment?


No, there is no cancellation in the Andhra Pradesh. It was not 3,700, it was around 3,200 or 3,300.

Ashutosh Narkar

Okay.


And around 100 is what we have completed in this quarter.


250 is in this nine months.

Ashutosh Narkar

Okay. Pprobably my number were wrong then. One last question on IVRCL assets, if you can give some, throw some

light on one, the Sion-Panvel and the Goa Highway? What's the current status?

Corporate ParticipantSion-Panvel, we have already signed the construction agreements.

Ashutosh Narkar

Okay.


We will, financial closure is in the final stages which should get launched or get closed shortly. We will announced

that. Panvel I mean Goa-Maharashtra is in the similar stages. We should be signing the construction agreement

probably in a week or 10 days time frame. And subsequently, we will go our financial closure in that project.

Ashutosh Narkar

On the Goa Highway, has the alignment been changed in the result of that, any cost increased?



13/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 13 of 46

There are no cost increase. There could be little bit of cost saving actually there. But that's not very...that's very

marginal. With some places where land acquisition was slightly modified, there could be some allignment changes.

Ashutosh Narkar

Yeah.


That's a part of any road projects for that matter.


It's not the alignment shifting, it is only reduction of the -- of the road, total road.

Ashutosh Narkar

Okay. Just last question again on the Sion-Panvel. So if you signed the...you've recently signed right. So what is our

date to complete the financial closure?


March ending.

Ashutosh NarkarEnd of March. Okay, thanks a lot.

Operator

Thank you. Our next question is from the line of Abhinav Bhandari from Elara Capital. Please go ahead.

Abhinav Bhandari

Hi sir. I had a few questions. On IVRCL, what kind of CapEx have we done now in nine months?


Nine months, it is around 110 crores.

Abhinav Bhandari

Okay. And can you give a break up of order book from our own in-house projects and roads?


14/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 14 of 46


It will be around 6,000 crores will be in-house projects.

Abhinav Bhandari

Okay. And can you give some color on the toll collections for the quarter from the projects which are operational?


Around 25 to 27 lakhs per day is what is coming in the toll collection per day.

Abhinav Bhandari

All three put together?


All three put together.

Abhinav Bhandari

Okay. And what's the construction stage for Baramati-Phalta and Indore-Gujarat?

Corporate ParticipantBaramati-Palta almost 25% of the construction, 25 to 30% of the construction is completed in terms of financial

progress.

Abhinav Bhandari

Indore-Gujarat, sir?


Indore-Gujarat is just starting. And there again, around 17% is completed in Indore-Gujarat project.

Abhinav Bhandari

Anything on Chengapalli and Chandrapur projects?


Chengapalli around 7% is completed. Chandrapur is yet to start.


15/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 15 of 46

Abhinav Bhandari

But we have signed the agreement in case of Chandrapur or we are still waiting for that?


We have signed.

Abhinav Bhandari

Okay. And how is this IOTL project going on any update on that?


65% of the project in terms of our portion of construction is coming through that. And once our portion is completed,

there are some fabrication work also which has started. So, you can take that the overall project is around 30-35%

completed as a BOT.

Abhinav Bhandari

Okay. Just I mean since you've said that you've started booking some revenues from the real estate front. Would you

give some color as what's going to be our strategy now on the projects where we are working?


See, we continue to do the same thing. Sriperumbudur is one project which we have launched. So their plotting and aswell as villas have started sold now. Phase I is where we have started selling the plots there. Probably by March or

April, we will start seeing the greenery which is more like the golf course will be ready therein Sriperumbudur.

In other projects, we have not gone to this extent of launching. Jigani is one project which we launched much earlier

and probably we will continue to complete the projects and handover to the existing bookings what we have done.

There are a few projects where we have seen good investor interest coming both in terms of Bangalore where we have

around 14 acres of land near Bannerghatta Road, Udaipur as well as for Noida. So we are evaluating what would be our

best option either at the -- or outright sales.

Abhinav Bhandari

And any good news that we can hear in the near term on the plot selling thing that you are earlier sort of interested in?


We have done that in Sriperumbudur, we have done around 106 plots sold already.

Abhinav Bhandari


16/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 16 of 46

Okay. And just one question on Hindustan Dorr. Just wanted to understand that if this 700-800 crores of new orders

what we had think might come by let's say Q1 FY12. Would it put any pressure on our sort of next year projections for

FY12. Would we be still be growing at around 35 odd percent?


Yeah. We will be still continue to grow around 25 to 30%.

Abhinav Bhandari

Okay. And could you provide the break up of the order book sir? You said manufacturing is around 250 crore, what...?


Yeah. On the general front, the order book is around 40%. Water is about 32%, and the other projects we have about

13%, and the manufacturing is about 15%.

Abhinav Bhandari

Okay. And can you just quickly give the...some of the balance sheet items. Debtors, loans and advances, creditors?


Yeah.


Yeah. Our debtors is 250 crores, and loans and advances are around 130 crores and net working capital is 355 crores.

Abhinav Bhandari

Gross loss sir?


Gross loss is 110 crores.

Abhinav Bhandari

Okay. That's it from my side. Thanks.


Yeah.


17/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 17 of 46

Operator

Thank you. Our next question is from the line of Vaibhav Jain from Religare Capital Markets. Please go ahead.

Vaibhav Jain

Good afternoon, sir. Sir, my question is on the working capital side. Given the fact that, the proportion of road projects

and overall revenues will move up in next year. Do you think there could be some respite on the working capital side?


See, two things about working capital is working capital is a very seasonal one. One is in the middle of the year, more

probably towards the second and third quarter. You will see a higher working capital, probably fourth quarter you will

see working capital easing out.

So this is the overall working capital. And again within roads, it's also depends on what level of roads, what portion of

road you are constructing. Like if you for example if you are doing Bitumen portion of the road, probably you may end

up paying some advances for Bitumen purchase for your working capital will vary accordingly. So, it also depends on

which type of roads et cetera and the location also varies a lot.

Like for example, if you take Paradip Refinery Project which we are doing, I mean of course it's not a road project. But

before even we got the LOI, we had almost 25 to 30% of the aggregate requirement already stacked up. So, the working

capital certainly goes up because of this kind of things which you need to plan in advance.

This is just to ensure that one of the key raw material which is aggregate is taken care of. So in a road, where you don't

have right away where the quarries are not close by probably you will end up spending more money on the quarries or

the aggregates et cetera. So it is just road dependent is what we would say.

Vaibhav Jain

Okay, sir. The reason I'm asking is that in terms of the fact that these are your own road projects. As far as planning of

work is concerned that is more or less in your hands unlike other government funded projects.


Correct.

Vaibhav Jain

So I was just thinking if there could be some respite on the working capital side whereas as you said it's difficult topredict even for you right now?


See simple fact is we need to borrow in only one company, either in IVR Assets or in IVRCL.

Vaibhav Jain


18/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 18 of 46

Correct.


So, if we are borrowing in IVR Assets, probably that much of payment will automatically be done for IVRCL. So it

could be a good respite for IVRCL. But at the same time, IVRCL may have to pay us for some advances et cetera for

Bitumen purchase et cetera. So it's just dependent on specific roads and assets which we are looking at.

Vaibhav Jain

Okay,sir. Sir, my second question is on the margin side, will it impact your margins, improve or may have a negative

impact on margins? Especially the fact that you have a large number of road projects which will be done by you.

Corporate ParticipantNo, it won't effect our margins. It will still range between 9.5 to 10% because road as a percentage, is overall revenue

will still be around 15% or so only.

Vaibhav Jain

Okay.


So, it will not have a major impact on the margins.

Vaibhav Jain

Unless there is a sharp rise in commodity prices, correct? Because in that case, your overall project cost on the IVRCL

asset side is more or less fixed.


More or less fixed. But the other way of looking at it is when we take the projects in IVRCL, even though it might be a

part of that project could have been given on the fixed price basis, the escalation is already built into that.

Vaibhav Jain

Okay.


As a construction company, nobody will take a risk on commodities either you will have a price escalation clause or

you will have escalation clause already built into that price.


19/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 19 of 46

Vaibhav Jain

Okay sir. Sir, that's it from my side. Thank you.

Operator

Thank you. Our next question is from the line of Jitesh Bhanot from Emkay Global. Please go ahead.

Jitesh Bhanot

Hello?


Yeah.

Jitesh Bhanot

Yes. Sir, my question is on IVR Asset, if I remember it correctly, to execute the current portfolio, you required about

1,350 crores of equity.


Right.

Jitesh Bhanot

Whereas, the mobilization or the money which is already there is 150 crores from -- capital and 250 crores for IFCL.

So how would be the balance 950 crores be tied up, if you can throw some color on that?


See, what will end up happening is, there are few projects where we are trying to get invested. So that means we will

sell minorities taken those in these projects. So that means, our portion of investment which needs to be done will come

down through that.

And three roads in Tamil Nadu, we have already received couple of term sheets. So, we are evaluating which would be

the best option to look at that. Probably, if that is going to happen, probably that will also ensure that we have takencare as far as cash flows are concerned.

And out of the 950 which you are talking, there is another 250 crores which will be done at CCD for the balanced three

projects which are under financial closure, which is Panvel-Sion, Goa-Maharashtra, and Chandrapur-Ghuggus.

So effectively, it is an amount of 700 to 750 crores in the next 2.5 years which needs to be invested. And there are some

banks like Central which have already approached us in terms of CCDs or any structured finance which is available in

these projects?


20/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 20 of 46

Jitesh Bhanot

Okay. Just to build-up on that, let's say if you evaluate which the options which are evaluating of diluting at the SPVlevel. So, 1,350 which recently was your contribution would come down to how much?


It might come down to 300 to 350 crores.

Jitesh Bhanot

1,350, will come down?

Corporate ParticipantNo, no, 1,350...let's not start with again 1,350 number. 1,350 minus for 950.

Jitesh Bhanot

Okay.


And, balance out of 950 minus another 250 for CCDs, which will do for the balance three projects.

Jitesh Bhanot

Correct.


We'll make it around 700 crores.

Jitesh Bhanot

Yeah.


And if we sell the three projects, our equity will come back to us, and there could be a premium also attached to that.

So, that means effectively it will take care of major portion of this number.

I know, what you assume this number now. So, this is where it will start-up. And, any real estate which will get sold in

the next two years will also add to this same cash flow.


21/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 21 of 46

Jitesh Bhanot

Okay. And, just wanted to know the financial closures with your -- for some of the projects? What are the tentativeinterest rate you're getting the core fact?


Around 11%.

Jitesh Bhanot

Okay. And, one last question. Can you give us the break-up of revenues for the segment for the nine month, water

transportation?


Buildings around 300 crores.

Jitesh Bhanot

Okay.


Water 650. Power 80.

Jitesh Bhanot

Okay.


Transportation 180.

Jitesh Bhanot

Okay.


Oil and Gas and others 220.

Jitesh Bhanot

This, you've given me for quarter three?


22/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 22 of 46


This is for Q3.

Jitesh Bhanot

Can you give me for nine months numbers?


Nine months is 3,600 is the total.

Jitesh Bhanot

Okay.


Buildings is around 850 or 875. Water will be around 1,700.

Jitesh Bhanot

Okay.

Corporate ParticipantOil and gas and others will be around 500. Transportation around 450.

Jitesh Bhanot

Okay. Yeah.


Power is 150.

Jitesh Bhanot

Okay. That's it from my side, sir. Thank you.

Operator

Thank you. [Operator Instructions]. Our next question is from the line of Ashish Shah from IDFC Securities. Please go

ahead.


23/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 23 of 46

Ashish Shah

Sir, couple of questions. One, could you indicate what is the L1 for the quarter, at the end of the quarter? L1 orders?


Around 2,000 crores.

Ashish Shah

Okay. And sir, what is the advance that you've received in your Sriperumbudur project or what is the realization from

abroad sales? Anything on that front?

Corporate ParticipantAround total booking, if they were to be I mean converted into cash, probably that should be equal to around 30 crores.

I think we would have received around 5 to 6 crores of advances currently.

Ashish Shah

Okay. And over what period will this entire 30 crore come in as cash?


Next one year. Because this number which I am giving you is only for the plot.

Ashish Shah

Okay.


And as the registrations and other things starts, the money is payable. In fact balance, I mean, second phase of money is

already payable now for most of the plots.

Ashish ShahOkay. And how is this progressing. So, in the next let's say quarter or two. How do you expect the cash from this

project to stack up?


This project will not give any cash flow to the parent company because this project is in a separate SPV where we have

a real estate investor there which is Kotak Reality with us.


24/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 24 of 46

Ashish Shah

Right.


So effectively what will happen is this project will get self-funding and what we have started as the first phase of the

project is 240 plots. And this is only the first phase and 160 acres of golf course is what we are developing there. So the

cash flows will be sufficient for the developments there in that project itself.

Ashish Shah

Okay. So nothing from the parent company needs to go there?


No. Nothing from parent company will go there.

Ashish Shah

Okay sir. That's all. Thank you.

Operator

Thank you. Our next question is from the line of Atul Rastogi from Daiwa Capital. Please go ahead.

Atul Rastogi

Yeah. Good afternoon, sir. Just one small question, you've IVRC parent has bought these alcohol, petrol and IVRC

building products.


Yeah.

Atul RastogiWhat was the consideration there?


Around 20 crores or 22 crores something like that.

Atul Rastogi


25/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 25 of 46

Is that reflected in IVRs numbers, IVR Assets numbers anything?


That is only investment will move. It is a cost moving from IVRCL Assets to IVRCL.

Atul Rastogi

So, there is no loss or gain on this?


No loss or gain. Basically, what happened is these were subsidiaries of the same entities which got merged. We were

waiting for the whole process to be completed. Once the process was completed, these assets have nothing to do withIVR Assets and Holdings. So, we transferred back into IVRC.

Atul Rastogi

And just one thing, could you give us some idea of consolidated numbers, if possible?


No, on a quarterly basis, we don't do consolidated.

Atul RastogiOkay.


Probably it will take another 15 to 20 days for even to come out with that kind of a number.

Atul Rastogi

Okay. And just an idea if how much were to, I mean if you were to adjust the poor performer consolidation, how much

would get knocked off or anything from IVR Assets?


IVR Assets, probably you can remove 498, may be you can remove around 325 from the IVR Assets and almost

nothing from HDO, because we don't do anything, may be 20-25 crores you can remove from HDOs top-line. We

move roughly around 350 crores between these two entities.

Atul Rastogi


26/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 26 of 46

And in terms of EBITDA?


This will be added. Pardon?

Atul Rastogi

And that's revenues, but in terms of EBITDA, anything you can?


May be around 9 to 10%, you can remove on that.

Atul Rastogi

Okay. Thanks.

Operator

Thank you. Our next question is from the line of Rishi Iyer from Citigroup. Please go ahead.

Analyst

Hello, sir. Sir, you mentioned the order inflows is around 7,500 crores, hello?


Yeah, tell me.

Analyst

Income -- side, there have been some announcements at the tune of around 9,700 crores. Has there been any

cancellations or something?

Corporate ParticipantNo, there are no cancellations.

Analyst

Okay, sir. Okay. Thank you.



27/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 27 of 46

Okay. Atul, one more answer which I need to give is the 320 need not be removed it seems, because most of the work

has been done for -- itself, which is only a 37% associates company. So, in consolidation that need not be reported.

Operator

And sir, can we move on to the next question?

Rupa Shah

Yes, Farah.

Operator

Thank you. Our next question is from the line of Vishal Sharma from BNP Paribas. Please go ahead.

Vishal Sharma

Yes, sir. Sir, just going back sometime, I think you're billing rate in October was somewhere about 500 crores. And we

were expecting a ramp up in November-December.

What was the reason or any shortfall because it looks like it was about flattish in November-December also. So, is there

anything that we should be taking from here and what kind of billing rates can we expect in January?


See, monthly billing rate is not the right way to see. Because like for example, if there are any supply portion whichwill be there that could skew your billing completely. So, in fact quarterly is also is not the right way to look at billing

because each project depends on what phase it is and what supply it is happening.

Just to give an example, we are doing hydro power plant project now. Probably 350 crores to 400 crores will be the

supply of electric mechanical index. So if that billing happens to the client on supply, you will add 400 crores of

revenue in that single month itself. So that's not the right way to check out about billing rate etcetera.

Vishal Sharma

Okay. And in your -- which you have bought back, was there any P&L impact or was there any non-recurring, any

non-recurring items in this quarter's P&L?


No P&L at all.

Vishal Sharma

Okay. From any other non-recurring, nothing at all?


28/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 28 of 46


There is one non-recurring item in the P&L, 5 crores of provision we have done which is a claim which was done threeyears back in one of the Tamil Nadu project. We continue to get this follow up done, probably hopefully we should get

the claim also but since it is more than three years as a policy, we have provided for that in the books. So that's the

one-time item which we have taken at the EBITDA level.

Vishal Sharma

And so will this be any tax adjustment will be there on this particular item? Or we can simply add it to the product list?


Yeah, current and deferred tax and EBITDA adjusted between these two.

Vishal Sharma

Okay. So simply I can just add 12 crores to the bottom line?


Yeah.

Vishal Sharma

Just in case to come up with some recurring number.


Every 10 crores you can add back to the bottom line.

Vishal Sharma

Okay. And on your Alkor Petroo transaction, there will be no change in the IVRCL stack and IVRCL assets?

Corporate ParticipantNo change in IVRCL assets on that.

Vishal Sharma

Okay, perfect. Thank you very much, sir.

Operator


29/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 29 of 46

Thank you. Our next question is from the line of Madan Gopal from Sundaram Mutual Fund. Please go ahead.

Madan Gopal

Good afternoon, sir.


Good afternoon.

Madan Gopal

Sir, I just wanted to know you said 150 crores of the pending investments will be made from real estate sale or

something but the money is not coming from the first project industry --. So probably what is that, can you give somecolor on which are the projects that we are targeting for this?


No. This money is not going to come from real estate. This is going to come from the existing BOT projects itself.

Madan Gopal

BOT projects.

Corporate ParticipantYeah. It could be a sale of existing BOT project or investment from investors into other new BOT projects. So, it could

be a combination of these two.

Madan Gopal

Okay. The second question is, we have three projects which are awaiting financial closures in the BOT side. Of this,

how much has been the order book that has been booked?


It will be around 2,500 crores.

Madan Gopal

2,500 crores, am I right?


3,500 to 3,600 crores.


30/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 30 of 46

Madan Gopal

Okay. Of this, we have signed concession agreement for the Sion-Panvel, right?


Yeah. Sion-Panvel and Chandrapur-Ghuggus.

Madan Gopal

Okay. The other project is, when we can expect to be complete?


Another one week, 10 days maybe, two weeks.

Madan Gopal

So all the three will be completed by this year itself?


Yeah, correct.

Madan GopalSo what kind of execution would happen next year in this in these projects?


What kind of?

Madan Gopal

Execution that we can see in these projects like will 10 or 15%, 20% of the project would be completed in FY12 itself?


See, these three projects are in Maharashtra. So if at all any revenue comes, it has to happen before say June-July kind

of a number. Otherwise, if you miss that, the revenue will start coming only in the second half of next year.

Madan Gopal

Okay. Thank you very much. Thanks for taking my questions.


31/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 31 of 46

Operator

Thank you. Our next question is from the line of Vibhor Singhal from Alchemy Shares. Please go ahead.

Vibhor Singhal

Good afternoon sir. Just a couple of quick questions. What would be the cash at the IVRCL asset level?


May be around 15 to 20 crores.

Vibhor Singhal

15 to 20 crores?


Yeah.

Vibhor Singhal

And what will be the gross debt at the IVRCL asset level excluding the debt that we have for the SPVs?

Corporate ParticipantIVRCL asset level?

Vibhor Singhal

Yeah.


IVRCL asset level will be around 400 which is NCDs and the borrowings which we will have.

Vibhor Singhal

Right.


And on the parent, it will be around 300 crores.


32/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 32 of 46

Vibhor Singhal

300 crores?


Yeah.

Vibhor Singhal

So basically, this does not include the exact year for the three SPVs that we are working on?


SPV debt will not be taken.

Vibhor Singhal

Yeah, right, that will not be taken.


Yeah.

Vibhor SinghalOkay. And, basically, sir, what you mentioned was not out of your 30-50 crores that we required as an equity for the

projects, the numbers comes out to 700 crores, right?


Correct.

Vibhor Singhal

Right. So, that 700 crores, I mean, we are looking to raise that money by selling our stake into the, in may be the

existing project or the new projects as well?


Yeah, correct.

Vibhor Singhal


33/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 33 of 46

So, is it like we are looking to the get entire funding by those deals or is it like, we would still have to pump in a bit a

money from our side as well?


It could be possible that we can entirely fund it through this.

Vibhor Singhal

Okay.


We have two years time for the total requirement, may be another 300 crores required in the next financial year, andbalance 400 is '12-'13. So about anyone will take the risk.

Vibhor Singhal

So, but that would be taken care by the NTCs and CCVs that we are trying to raise?


Yes.

Vibhor SinghalBy the max. Okay. Off profile sir, the last question, what would be the debt at the IVRCL Infrastructures for company

level project?


2,200 gross.

Vibhor Singhal

Sorry, how much?


2,200 as gross debt.

Vibhor Singhal

Okay, fine. Thank you sir. Thanks a lot.


34/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 34 of 46

Operator

Thank you. Our next question is from the line of Naveen Jain from Indiabulls Securities. Please go ahead.

Naveen Jain

Yes sir. Thanks for taking my question. My question pertains to your IVRCL Assets. You in the first nine months you

have done about 425 crores of top-line in IVRCL Assets standalone level. What are you expecting to do for the full

year?


125 to 150 crores may be.

Naveen Jain

In the fourth quarter?


Yeah.

Naveen Jain

Okay. And so that will take it to overall to about 550 to 570 odd crores. So, of this 560 to 570 crores how much will be

your IOTI?


May be around 400, 425 crores.

Naveen Jain

Okay. So in the first half almost 300 odd crores is from IOTI?

Corporate ParticipantYeah.

Naveen Jain

Okay. And this margin, in the first half you were doing about -- 2.2% was your margin in the first half. And in third

quarter, is obviously much better at 6.8%. So, what is the kind of sustainable margin at this standalone level?



35/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 35 of 46

Which company?

Naveen Jain

IVRCL Assets, standalone.


IVRCL what will happen is -- the standalone what will happen is it depends on the project-to-project, probably

sustainable will be around 4.5 to 5%.

Naveen Jain

4.5 to 5%?


Yes.

Naveen Jain

Okay. So how will it work since if I look at your current set of road projects. What proportion of your current road

projects will flow into a standalone revenue of IVRCL Assets in terms in EPC revenue or the fee revenue whatever it

is?


Fee revenue I mean whatever name you call it ultimately, will be around 25 to 30% of your road revenue will flow at

this entity.

Naveen Jain

Okay 25 to 30% and this will also be part of your IVRCL Infra, same revenue?


No need not be.

Naveen Jain

So, basically the EPC part is getting divided into two parts say 75% is going to IVRCL Infra and 25% is going to

IVRCL Asset standalone?



36/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 36 of 46

Supply and supervision will be from assets and holdings and the execution will be from IVRCL.

Naveen Jain

Right and the mix could be about 75:25?


Yes 75:20 or 70:30 depending on location projects.

Naveen Jain

Okay. Sure sir. Thanks a lot.

Operator

Thank you. Our next question is from the line of Tina Virmani from Kotak Securities. Please go ahead.

Tina Virmani

Hi sir my question is regarding the FCCBs you have mentioned you've redeemed somewhere around $7 million during

the current quarter, these FCCBs were redeemed


Correct.

Tina Virmani

So the increase in the interest out go in the current quarter to around 59 crores vise-a-vi 48 crores seen in second

quarter of FY11, that is purely on account of your increase in borrowings or this FCCB?


No, there is no impact on the P&L.


Nothing is included about our FCCB in this. The only main thing is last year in the same quarter our average interest

rate is around 7.5 to 8%.

Tina Virmani

Right.


37/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 37 of 46


Whereas in this quarter it is around 10 to 10.5%. That is the major impact it has taken.

Tina Virmani

And on a sequential basis also there is a significant jump from 48 crores seen in second quarter of FY11 we have seen

59 crore?


That is what, second quarter also it is not that much tight, third quarter is very tight. So there is no liquidity in the

system and all the bank rates has gone up.

Tina Virmani

Okay, okay. And my second question is regarding the full year guidance that you have given to be around 60 to 50

crores. If we look into 60 to 50 crore, that could basically translate into quarter four revenues of nearly 25 to 2,600

crore.


Yes.

Tina VirmaniAnd given that we have already past one and a half months in the quarter four, do you see that to be materializing the

easily?


Yes, yes. That is first month only we got the figures which is around 700 plus.

Tina Virmani

Okay.


So it will be progressively improve second and third months and we can easily achieve that...

Tina Virmani

Okay. And the last question from my side, I joined slightly late. Can I get the order book break up of the company in

terms of water building plants station oil and gas and power?


38/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 38 of 46


Yeah sure. Water will be around 11,000 crores, buildings and industrial structures will be around 4,500.

Tina Virmani

Okay.


Power 1,700.

Tina Virmani

Okay.


Transportation 6,500, oil and gas and others around 300.

Tina Virmani

Okay. Thanks a lot, that's all from side.

OperatorThank you. Our next question is from the line of Shailesh Kanani from Angel Broking. Please go ahead.

Shailesh Kanani

Sir, couple of questions from my side. Sir, what kind of the current -- figures like inventory, debtors or the other curren

assets, loans and advances?


No, we don't discuss quarterly numbers, I mean, quarterly balance sheet numbers.

Shailesh Kanani

Okay sir. Sir, just one question on that front again, sir, has there been a reduction in working capital because of first

half of the working capital requirement was around 2800 crores, that is net current assets excluding cash. Has there

been an improvement in the working capitals item in third quarter?



39/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 39 of 46

The capital remains the same.

Shailesh Kanani

It's the same.


Yeah.

Shailesh Kanani

So, basically the interest cost has gone up only because of the interest rate hardening.


Correct.

Shailesh Kanani

Okay sir. And sir one more question on the BOT front. How are the revenues planning out for all the operation

projects? Are they in line with our earlier estimates or they are... than that?


Pre-bid estimates no, we are not in line with that, we see that traffic improving, but it is not in line with that but, but

post-bidding whatever we have been seeing it is in line with whatever new numbers which we have seen. So it's more

or less okay now.

Shailesh Kanani

So, earlier I think our guidance was around 1 crore per day for all the four projects operational?


It was suppose to be around 85 to 90 lakhs.

Shailesh Kanani

85 to 90 lakhs. And right now it's what?


It's around that.


40/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 40 of 46

Shailesh Kanani

It's around 85 to 90 lakhs. Okay sir, that's all from my end.

Operator

Thank you. Our next question is from the line of Nimit Shah from Daiwa. Please go ahead.

Nimit Shah

Hello. Good afternoon sir. Most of the questions have been answered, can I know the execution in this quarter, what I

have seen in the first one and a half months or in the January month?

Balarami Reddy, Director of FinanceWe will discuss the number after we close the quarter, we can't give the numbers now.

Nimit Shah

Okay, okay. Thanks a lot.

Operator

Thank you. The next question is from the line of Ashutosh Narkar from HSBC. Please go ahead.

Ashutosh Narkar

Thanks Ram, all my questions have been answered.


Okay.

Operator

Thank you. Our next question is from the line of Gaurav Agrawal from Chrysler. Please go ahead.

Analyst

[Question Inaudible].


I think his voice is not clear.


41/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 41 of 46

Operator

The line has been disconnected, shall we move on to the next question?


Sure.

Operator

The next question comes from the line of Ranjeet Shivram from B&K Securities. Please go ahead.

Analyst

Good afternoon sir. Most of my questions have been answered, I just wanted to know like in the HDO part like you

have, you are telling that you are expecting an order of 700 to 800 crores, so is this for the next financial year or what is

the timeframe?


See these orders we are expecting in the last quarter which is again January to March.

Analyst

Okay. And what is our order pipeline I just missed out on that.


It is about a 300 crores we are L1, 330 crores.

Analyst

330 crores you are L1?


Yeah.

Analyst

And another around 400 to 450 crores we are expecting.


Yeah.


42/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 42 of 46

Analyst

Okay. And Sir like generally our EBITDA margins have been down compared to last year. Is it again because of thesales mix getting more towards... project.


Yeah exactly same.

Analyst

Okay. So roughly around what percentage in our order is priced project, as our pipeline the project in the order pipeline

also we have mostly water related projects?


No now our -- existing of minerals and metals around 39%.

Analyst

Okay


Environmental is only 32% which is water.

Analyst

Okay. And in the order pipeline sir.


In the pipeline also the minerals and materials orders are more.

Analyst

Okay. So going forward we can safely assume that the EBITDA margins will be in a higher level compared to thisyear?


Yeah. Definitely we are trying for that I mean we will be able to maintain and improve upon.



43/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 43 of 46

Yeah those different project we need to tell them that... go up because of the manufacturing sector which is going up

and... expected is... and PBT. Now we have collected a fair amount of good... and manufacturing variety of project.

Some of these products are very high end which you will use in lot of exotic.


Materials yeah.


And our EBITDA margins is bound to go up.

Analyst

It is bound to go up.


Which is partly something which we will not be able to tell you. But the factory outlook is really good and the sixth pay

is getting ready and once that comes in we can vigorously clock more than 250 to Rs. 300 crores of turnovers only from

the factory.


Factory outlook. Yeah.

Analyst

Okay. And sir, in that sort of like value mix mark which we adapted, is it contributing substantially in our

manufacturing products...


Going forward, it will be doing, going forward. We are trying to integrate, some of the products for the Indian mining

sector.

Analyst

Okay.


Mining guys will be marketing this in India.

Analyst


44/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 44 of 46

Okay.


So, going forward, which will definitely add value to our business.


The numbers which are been announced is standalone HDO, not consolidated.

Analyst

Okay.


Apart from this, we have around 15 million of revenue and they will mark that now.

Analyst

And, how much of profit, sir?


This full year -- profit on a quarterly basis is not relevant there, but this full year, we might end-up losing around500,000 there.

Analyst

500 and?


500,000, may be around 3 crores.

AnalystOkay. 3 crores of loss.


Yeah.

Analyst


45/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




Page 45 of 46

Okay. And, like what is our outlook in that nuclear job front which we have actually Davymarkham will be able to send

a lot of related projects because they have some...


Qualification, they have lot of pre-qualifications, probably with those qualifications we will be biding for projection

with Nuclear Power Corporation.

Analyst

Okay. So what progress is still in the initial stages or you are seeing some...?


See basically lot has gone into Nuclear Power Corporation business only quite recently. This year we have been able to

add with our own qualifications of the factory in Ahmadabad, we have been able to get orders worth about 85, 90

crores. And going forward now we will be come and more or more projects are coming up, tenders are coming up. So

for using the qualifications of Davymarkham we will be able to get sizable amount of business.

Analyst

Okay. Thank you sir.

Operator

Thank you. Ladies and gentlemen that was the last question. I would now like to hand the floor over to Ms. Rupa Shahfor closing comments.

Rupa Shah

Yeah, thanks Farah. On behalf of Prabhudas Lilladher I would like to thank the management and all the participants for

the call. Thank you and have a good day.


Thank you.

Operator

Thank you. On behalf of Prabhudas Lilladher, that concludes this conference call. Thank you for joining us. And you

may now disconnect your lines. Thank you.

This transcript may not be 100 percent accurate and may contain misspellings and other inaccuracies. This transcript

is provided "as is", without express or implied warranties of any kind. Bloomberg retains all rights to this transcript

and provides it solely for your personal, non-commercial use. Bloomberg, its suppliers and third-party agents shall

have no liability for errors in this transcript or for lost profits, losses, or direct, indirect, incidental, consequential,


46/46



Date: 2011-02-14



Current PX: 72





Current Year: 9.090




special or punitive damages in connection with the furnishing, performance or use of such transcript. Neither the

information nor any opinion expressed in this transcript constitutes a solicitation of the purchase or sale of securities

or commodities. Any opinion expressed in the transcript does not necessarily reflect the views of Bloomberg LP.

COPYRIGHT 2011, BLOOMBERG LP. All rights reserved. Any reproduction, redistribution or r

Documents

ivrcl trasncript