Punj Lloyd Q3FY17 Concall Summary

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Key Highlights

Financial overview punj Lloyd
  • The standalone loss posted was 230 crores & it is narrowing
  • Net margins should be around 5%
Punj Lloyd Q3FY17 Segment Revenue

Update on various projects

Order Backlog Punj Lloyd
  • Lot of traction on core business in the construction side. Project in Malaysia is moving well as are the projects in Kuwait & Oman
  • Seeing some good traction on the highways & the infrastructure side, particularly opening on the railways, & the metros,
  • The company generally bids for project with 8 to 10% margin. Due to demonetization the gross margin has come down to 2% but generally it will be around 7%-8%
  • Projects in the last 12 months are already ring-fenced & banks are providing necessary support along with mobilization advance which the company has received from clients as bank guarantees.
  • The company is bidding in the space of highway & infrastructure projects. The company is expecting a good amount of business.
  • Rs 5000 crores is the amount of bid outstanding. Earlier the company claimed it had bid for 13000 crore project, these include overseas bids as well
  • Contract revenue is 867 crore, trading revenue is Rs 131 crore, others is 411 crores, total is 2003 crores

Other updates

  • Punj Lloyd Infrastructure Limited (PLIL) a wholly owned subsidiary of the Company has executed definitive agreements with India Power Green Utility Pvt. Ltd.(IPGUPL) to co-develop 30 MW solar assets in Uttarakhand
    • The projects 10MW each are to be executed by Wholly owned subsidiaries viz. PL Surya Vidyut Ltd, PL Sunrays Power Ltd and PL Solar Renewable Ltd
    • PLIL will divest 49% in the three subsidiaries and the SPV’s have signed a 25 year power purchase agreement with Uttarakhand Power Corporation Ltd
  • The Company’s wholly owned subsidiary Punj Lloyd Infrastructure (PLIL) has executed definitive agreements with India Infrastructure Fund II to divest three operating solar projects aggregating to 45 megawatts (MW) located in Punjab and Rajasthan subject to customary approvals and other conditions precedent PLIL will divest its entire shareholding in its subsidiaries that hold the three projects
    • Punj Lloyd Solar Power (PLSPL) owns and operates a 5 MW solar power project selling power under a 25-year power purchase agreement with NTPC Vidyut Vyapar Nigam
    • PL Surya Urja (PLSUL) owns and operate a 20 MW solar power project selling power under a 25-year power purchase agreement with Punjab State Power Corporation
    • PL Sunshine (PLSL) owns and operate a 20 MW solar power project selling power under a 25-year power purchase agreement with Punjab State Power Corporation
  • The company has lawsuits where in the Singapore court asked judicial managers to have another round of discussion with the proposed investors & companies who are looking for the revival of these 2 entities in Singapore. The positive thing is that the company has proposed financial revival & the same has not been rejected by court.
  • A confidential agreement has been signed among the JM, the court & the company where in the details of the deal are not to be disclosed.

Debt

Punj Lloyd Consolidated borrowing
  • Debt restructuring of Long term debt & working capital is on the cards
  • Net borrowings around 6500 crores for construction. Current cost of borrowing is around 8-9%
  • Total debt will be 7500 crore at consolidated level. Debt Restructuring is also on the line & expecting some good news

Outstanding Payments from Qatar and Libya

  • There are outstanding payments from Libya & Qatar which are pending for long period
  • For Qatar the receivable is around $120 million & for Libya it is Euro 55 million. If it is converted into rupees it is 800 crores for Qatar & 400 crore for Libya. For Qatar the amount due is outstanding contract money. In Libya the amount is agreed by client but unfortunately because of the situation in Libya

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