- Yogesh Jain, Managing Director, PNC Infratech
For Agra-based PNC Infratech, (We do not just bid for the sake of order-book expansion,says Yogesh Jain, Managing Director, as he shares more on the company's projects.
How has the change in NHAI awarding projects from BOT to EPC and HAM helped companies?
NHAI is awarding a large number of highway projects on EPC and HAM modes in place of BOT (toll or annuity) formats, thereby relieving developers completely from traffic or revenue risk. This has not only given great comfort to the road construction and developing firms but also to the banking industry, being the principle lenders to the sector.
Please list your recently bagged projects under NHAI.
In FY17-18, we secured the following two major HAM modelled projects for an aggregate bid project at Rs 33.56 billion:
= Six-laning of the 145-km Chakeri-Allahabad section of NH-2 in Uttar Pradesh: Rs 21.59 billion.
= Four-laning of the 45-km Aligarh-Kanpur section (Package 2 from Bhadwas-Kalyanpur) of NH-91 in Uttar Pradesh: Rs 11.97 billion.
In FY 18-19, till date, we have secured one highway project on HAM model (the 55.7-km four-laning of the Challakere-Hariyur section of NH-150 A in Karnataka for a bid project cost of Rs 11.57 billion) and stood as the lowest bidder (L1) in one expressway project on EPC model (the 54.4-km fourth package of the six-lane Nagpur-Mumbai Access-Controlled Super Communication Expressway, or Maharashtra Samruddhi Mahamarg, for a quoted price of Rs 20.99 billion).
Are you looking at executing projects on a consortium basis?
In view of our robust techno-financial credentials and end-to-end implementation capabilities, including investment, development, execution, operation and management of highway projects, we prefer to pitch for projects as a sole bidder. As such, we are not looking to pursue projects on a consortium or JV basis in the near future.
How do you intend to raise funds for these projects?
For all the HAM projects secured till FY17-18, we will be infusing equity from our internal accruals. However, as we look forward to securing more HAM projects going forward, we will look at the other options of fund raising for equity contribution, as required.
Tell us about the company's performance in FY2017-18. Considering the current market and opportunities, what are your expectations for FY 18-19?
The performance of the company in FY2017-18 was better than FY2016-18, both on a standalone and consolidated basis. In FY18, standalone revenue, EBIDTA and PAT increased by 10 per cent, 44 per cent and 20 per cent; consolidated revenue, EBIDTA and PAT increased by 7 per cent, 23 per cent and 105 per cent over FY17, respectively. In FY18, standalone revenue, EBIDTA and PAT stood at Rs 18.57, Rs 3.19 billion and Rs 2.51 billion and Rs 24.11, 7.69 and Rs 2.43 billion on consolidated basis, respectively.
Given the huge opportunities in the highway space, our core sector, robust order book and proven execution capabilities, we foresee a decent growth in the top-line and bottom-line on both standalone and consolidated basis in FY19 over FY18. We also expect to secure over Rs 60 billion worth of new projects in FY19.