MEP Infra Q4FY17 Concall Sunmary

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Financial Highlights

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  • Revenue for this quarter was Rs 413 crores, EBIT of 135 crores and PAT of 12 crores
  • Revenue for the whole year stood at Rs 1729 crores in comparison to Rs.1,905 Crores last year with EBIT of Rs 507 crores and PAT of Rs 109 crores
  • Consolidated EBIT margin for this financial year was maintained around 29.3%, as compared to 30% last year.
  • Received approval from SEBI and for launching InvIT in coming months
  • Finance costs amounted to Rs.493 Crores in FY2017 as against Rs.642 Crores for FY2016
  • Final dividend of 0.15 paise per equity share at a face value of Rs. 10.
  • The PAT margins have improved to 6.3% in the financial year FY2017 from negative 1.9% in FY2016
  • Total debt of around Rs.2,949 Crores out of which the MIPL debt is around Rs.2,425 Crores, Mumbai Entry Point and the rest of the group is Rs.389 Crores and importantly it does not include hybrid annuity projects debt because of joint venture accounting
  • Consolidated cash flow of around Rs.206 Crores as opposed to Rs.180 Crores odd last year.
  • InVIT size is expected to be in the range of Rs.1,400 Crores
  • Toll rate hike on first of October this year
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Project Update

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  • Successfully achieved full financial closure for all of the six HAM projects which are the hybrid annuity projects worth INR 3,836 Crores.
  • Appointed date received for commencement of work for four out of these six projects, namely, Nagpur Road Ring road 1 and Nagpur Ring Road 2 and Talaja – Mahuva and Mahuva – Kagavadar projects in Gujarat.
  • Entered into a MoU with CIDB Holdings to collaborate infrastructure projects in India, namely, the Railway Ministry has identified around 400 A1 and A category stations for re-development.
  • Development, operation and maintenance of these railway stations with CIDB Associates under consideration
  • Flagship Mumbai entry point project recorded revenues of around INR 489 Crores as compared to INR 412 Crores last year.
  • Hyderabad – Bangalore OMT project minted revenues of around INR 160 Crores as compared to INR 142 Crores last year.
  • Successful bidder for the Rajiv Gandhi Sea Link project and expecting confirmation for the three year long term project this week itself.
  • No new bids for any road projects or commencement of work on structures or flyovers or bridges or rail over bridges by National Highways Authority until the completion of land acquisition and shifting of utilities and obtain in principal forest clearances.
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Hybrid Annuity Projects

  • Achieved financial closure for all our hybrid annuity projects and also received appointed date for four projects
  • Tolling revenue of around Rs.425 Crores as well as Rs.64 Crores of additional scope of work related to strengthening of 27 flyovers and electronization of our toll plazas
  • EPC revenues in excess of around Rs.1,200 Crores to be expected
  • Total equity requirement on the six HAM projects is Rs. 575 Crores which will be partly funded by our JV partners in ratio of the shareholding, which is around Rs.170 odd Crores, and partly by the company, which is around Rs.400 odd Crores out of which 200 crores has already been funded
  • IRRs of about 12% from the InvIT project
  • Bidding for pipeline in the next two to three months underway which is around Rs.10,000 drores worth of work
  • Construction income of Rs 63 crores for full year
  • EPC amount to give you a perspective is largely around Rs.3450 Crores to Rs.3500 Crores. The company's bid project cost is Rs.3836 Crores. EBITDA would be in the range of 12% to 14%

Toll operate transfer model

  • Not participating in 3 or 6 months tolling formats
  • NHAI itself taking time in coming up with the roadmap for the TOT projects or transforming from one year to four year projects

Proposal for new toll policy  

  • Proposal of a new close toll policy by the Road Transport Authority on the new 135-kilometer Eastern Peripheral Expressway, that will allow commuters to be charged on per kilometer basis for the distance that they actually travel instead of fixed fee charged for the entire toll road irrespective of whether they use a part of it or the entire road

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