Maytas Infra FY08 revenues seen at Rs 1,600 cr

October 25, 2007

Teja Raju, Vice Chairman, Maytas Infra said that FY08 revenues are seen at above Rs 1,600 crore while profits are seen at over Rs 100 crore. He added that EPS for FY08 will be seen at Rs 18-19.

According to Raju, they have an order book of Rs 4,500 crore, mostly to be executed in 18-24 months. He added that they have no intentions of entering into real estate and that they intend to focus on construction.

Raju said that they have tied up with a Thai company for the Hyderabad metro projects. He added that they are looking at tie-ups for small projects in South and North India.

Excerpts from CNBC-TV18’s exclusive interview with Teja Raju:

Q: What kind of numbers are you looking at in FY09 given the kind of order book that you have on hand now?
A: We did revenues of about Rs 800 crore last year. We are looking at maintaining 100% growth, so about 100% last year’s growth is what we are looking at.

Q: You are saying that you’ll do Rs 1,600 crore in FY08?
A: We’ll do close to Rs1,600 crore profit, would go by that percentage. We did Rs 53 crore last year, so hopefully it would be double than this year is what we looking at.

Q: So you will probably deliver more than Rs 100 crore in net profit at the end of this fiscal year?
A: That’s true, that’s what we are hoping to do. We are on track and we are very confident that we should be able to achieve that.

Q: That is pretty much higher than our estimates, if you do a Rs 100 crore plus on net profit, what’s your own target on an earnings per share as a company?
A: 18 or 19 is what I think the market is, so we should be around that.

Q: Can you explain to us what’s contributing to this big growth that you expect in this financial year and what is your order book and how much of it gets executed within this year to bring your revenue up to that figure?
A: We have an order of about close to Rs 4,500 crore and this order book is spread across sectors like the road sector, the irrigation sector, oil and gas pipeline and power division. Most of the order book are supposed to be implemented over the time frame of 18 months or 24 months. All these order books have crossed the initial hurdle of globalisation, which would typically take longer time. So this is where we are quite confident about the numbers, which we are projected on.

Also lot of new work is coming out in these sectors, especially the power sector and oil and gas sector where we expect lot of orders to be called from the government. So if we can win a few more orders this would ensure that we have achieved these numbers.

Q: You have no designs of getting into the real estate business?
A: No, we are not getting into real estate, we want to be focused on infrastructure, that is construction and BOT development project.

Q: What kind of visibility do you have for the next year, FY09? Do you expect it to continue to grow at a 100% even next year or this year or the growth rate should moderate somewhat?
A: Lot of it depends on the kind of order, which should be called up by the government. Especially, next year being the election year. There would be many aggressive contracts coming up from the government or there might be a bit of a slow down. It would be very difficult to credit so far, but in the last couple of years things look good but election year is always a bit difficult to credit.

Q: You’ve got a couple of interesting tie-ups as well for the construction side. Can you just talk about who you have tied-up with and do they kick off within the next four to six months?
A: We have tie-ups, both in the construction side as well as the infrastructure development sector. In infrastructure development we have qualified for the metro rail project in Hyderabad. We have tied up with the Italian-Thai of Thailand over there. For some small airports in Karnataka, we have tied up with Vienna airports. The government has announced a couple of airports in the North recently, so we are looking at new tie-ups over there. In the construction side, we work with a lot of companies, Nagarjuna Construction is one of them, Gayatri Infra, Soma Construction. So these are the various partners we have.

Source: moneycontrol

Written by ITW Editor · Filed Under Investment and Finance, Media