PVR Company plans to add 42 additional screens during the current fiscal

June 3, 2009 · Filed Under conference call · Comment 

Highlights of the call

  • The company during the quarter ended March 2009 reported just 5% growth in net operating revenues at Rs 58.01 crore. After providing for tax credit during the quarter, the net loss was Rs 1.11 crore as compared to a net profit of Rs 2.70 crore during the corresponding quarter of the previous year.
  • During the full year ended March 2009, on standalone basis, PVR reported 15% growth in net revenues to Rs 274.73 crore. Operating margins dipped 320bps at 16.8% due to higher other operating expenses and the staff cost. PAT for the year dipped 40% at Rs 12.65 crore.
  • The movie pipeline was weak during the year and the performance of some of the big budget movies, was dismal thus impacting the overall performance during the year.
  • The security concerns due to bomb blasts in various cities and the terrorist attacks in Mumbai also had its sober impact.
  • During the year under review there was only handful of successful movies, including GHAJINI, JAANE TU YA JAANE NA, RAB NE BANA DI JODI and SINGH IS KING!
  • The exhibition industry witnessed one of its low years, leading to decline in occupancies and overall profitability.
  • During the quarter ended March 2009, ticket sales grew 19% at Rs 35.1 crore, the F&B revenues grew 5% at Rs 10.97 crore whereas the income from revenue sharing however fell 54% at Rs 2.29 crore, and advertising & royalty income fell 6% at Rs 8.39 crore.
  • For the quarter footfalls increased 2% at 3.75 million however average occupancy decreased to 27.3% from 31.9% in the corresponding quarter of the previous year. The footfall during the full year was up by 7% at 17 million patrons.
  • The fall in occupancy was due to lack of good quality content and below expected performance of big-budget movies such as Chandni Chowk to China and Delhi-6. Besides there was hardly any content being released at the cinemas since March 2009.
  • The new properties, which are yet to stabilize, operated at sub-30% occupancy and further pulled down the overall occupancy for the year.
  • The properties under operation at the end of March 2009 were 26. The screens under operation at the end of March 2009 were 108 against 84 in the corresponding quarter previous year. Seat capacity at the end of March 2009 was 27,827 against 21,853 seats in the corresponding quarter previous year.
  • Geographical distribution, 49% seats are in North, 11% in South and 40% in West. The company plans to expand to the eastern market as well by launching a project in Kolkata during FY 2010-2011.
  • The revenues from comparable properties were down 6% at Rs 53.5 crore.
  • On comparable basis, the ATP (Average ticket price) was flat at Rs 133 during the previous quarter ended March 2009. Non-comparable/new properties ATP were at Rs 154. The overall ATP for the quarter was up 6% at Rs 140.
  • The average entertainment tax, as a % of gross ticket sales and income from revenue sharing fell to 14.67% during Q4 as compared to 16% during the corresponding quarter of the previous year. 46 screens of the 108 screens under E-Tax exemption. Currently, 42% seats enjoy E-Tax exemption.
  • The average ticket price increased 6% at Rs 140. ATP of comparable properties was flat at Rs 133.
  • During the quarter under review, PVR Blu-O, a joint Venture Company between PVR Ltd and Major Cineplex Group Plc based out of Thailand, opened its first and India’s largest Bowling Alley Center located at prestigious Ambience Mall in Gurgaon giving fillip to out door retail entertainment. Additional 2 more centers would be opened during the current fiscal.
  • During its 18-days of operation, the subsidiary grossed an income of Rs 68 Lakh and a net loss of Rs 36 lakh, largely on account of opening launch cost at the time of commencement of the property.
  • During the quarter under review, M/s CR Retail Malls (India) Pvt Ltd, a wholly owned subsidiary of PVR Ltd which operates a seven screen multiplex with 1847 seats, situated at Phoenix Mills Compound, Lower Parel, Mumbai, has been granted the exemption from the payment of Entertainment Tax under the provisions of Bombay Entertainment Duty Act, 1923, by the Maharashtra Government for a period of 5 years With this property, PVR now has 42% of its overall seat capacity and 39% of overall screen capacity under entertainment tax exemption.
  • The company opened 24 screens, including Mumbai’s largest multiplex at Phoenix Mills. During the year under review the company also opened India’s largest 24-lane, bowling center at Ambience Mall, Gurgaon.
  • The company is expecting a handover of approx. 30-40 screens over next six months from various real estate developers for fit outs.
  • For FY10, the company plans to add 42 more screens thus increasing the seat capacity by 10,000 by the end of the current year. The average capex per screen was Rs 80,000 – Rs 90,000 and the company plans to reduce it by further 10-15% during the current fiscal.
  • The upcoming screens locations are well chosen at prime locality in order to attract viable business.
  • The Karnataka Government has reduced the rate of entertainment tax applicable to cinemas from 40% to 30% with effect from April 2009. The company currently operates India’s largest, eleven screen cinema at Koramangla (Karnataka) and is expected to open another eleven Screen cinema in Bangalore during the year.
  • The Andhra Pradesh government has increased the maximum number of shows that can be showcased in a day from 4 to 5 shows per day. The company currently operates a three-screen cinema in Hyderabad, which will get benefited by the aforementioned change in regulatory scenario.
  • The ongoing tussle between the producers and multiplex operators has adversely impacted the availability of content during the current quarter. However this issue would be settled in a week’s time.
  • During the latter part of the year there are around 30-40 big-budget movies slated for a release. Thus this is expected to improve the performance of the company going ahead.
  • Around 2-3 movies is set to be released by PVR Pictures.
  • The exemption of service tax on lease rentals, reduction of Entertainment tax in Karnataka and relaxation on number of movie shows in Hyderabad is expected to drive the growth of the company in the current fiscal.
  • The consolidated cash in the book is Rs 115 crore (Rs 10 crore in PVR and Rs 105 crore in PVR Pictures) and the consolidated debt in the book is Rs 145 crore.
  • The company declared a dividend for the year ended March 2009 at 10% per share (Re. 1 each) on equity shares.

Cinemax India Currently working 50-60% of normal operations

June 2, 2009 · Filed Under conference call · Comment 

Highlights of the call

  • At the end of March 2009, the Company has operates 74 screens at 25 locations with capacity of about 20305 seats. The Company added two locations: Hyderabad and Kalyan adding 5 screens and 480 seats in Q4FY09.
  • The footfalls for the quarter were 85.14 lakh up from 65.57 lakh in the sequential quarter. The occupancy was down at 25% from 27% for sequential quarter. The ATP was stagnant at Rs 129 and F&B spent was stagnant at Rs 30.
  • The footfalls for the year were 85.14 lakh up from 61.91 lakh in the previous year. Comparable properties had footfalls of 67.64 lakh up from 61.91 lakh. The number of shows were 100892 up from 77491. The occupancy was down at 24% from 29% for the previous year. The ATP was stagnant at Rs 131 for comparable and Rs 118 for new properties and F&B spent was up at Rs 31 from Rs 29 for comparable properties and Rs 27 for new properties.
  • The Company plans to add about 55 screens across the country in FY10 of which 28 screens would come up in the next 60-75 days and the others by January 2010. Worst case scenario company would add atleast 40-45 screens in FY10. The capex for the addition would be about Rs 70 crore.
  • Currently, on the back of producers strike, the company is operating at 50-60% of its normal operations. For April 2009, the Company had revenues of Rs 8 crore and for May 2009 expects revenues of Rs 7-8 crore and hoping that the strike would end expects revenues of June 2009 to be Rs 13-14 crore. Currently, the Company is showing Regional movies and English movies. For the first 2 months of FY10, the Company is making a small loss.
  • As of March 31, 2009, gross block stood at Rs 235 crore: owned properties (9 properties) of Rs 70-80 crore and mall was Rs 30 crore. The net block was Rs 195 crore. Capital WIP stood at Rs 25 crore. The debt on books stood at Rs 75 crore.
  • For FY09, the distributors share is about 31-32% of the gross ticket sales (incl. entertainment tax).
  • For the fourth quarter of FY09, on consolidated basis, Cinemax reported 35% growth in operating revenues at Rs 33.42 crore with operating margins dipping 880bps at 10.6% and the PAT de-grew 56% at Rs 0.98 crore on the back of higher depreciation on the back of 7 new properties added during the period and higher than required depreciation provided.
  • Of the gross revenues of Rs 36.71 crore, 75% is ticket sales, 17% is F&B revenues and the balance is other operating revenues.
  • Of the other income of Rs 9.42 crore: mall rental was Rs 3.22 crore, other rental was s 1.34 crore, income from investments was Rs 3.59 crore and other income was Rs 0.85 lakh.
  • For FY10, the Company expects revenues of Rs 200 crore plus with EBITDA margin of 25-27% and net margin of 10%. The Company is expecting 54 movies to be Q2 & Q3FY10. The management expects occupancy rates to be at 25-27% for FY10.

Sun Pharmaceuticals Expects revenue growth of 13-15% on consolidated basis

June 2, 2009 · Filed Under conference call · Comment 

Highlights of the call

  • Net sales for the quarter ended March’09 on consolidated basis declined by 10% to Rs 1134.41 crore and Net profit declined by 45% to Rs 394.88 crore.
  • For the year ended March’09, net sales posted moderate growth of 27% to Rs 4272.30 crore and net profit rose by 22% to Rs 1817.73 crore.
  • Caraco Pharmaceuticals industries, a subsidiary of company has reported net sales of USD 51 million for the quarter, a decline of 67% over corresponding pervious period and net loss of USD 2 million for the quarter. Caraco Voluntary recalled all lots of Digoxin Tablets distributed prior to March due to size variability and write-off the same.
  • Caraco has received warning letter from US FDA in the October 2008 for some procedural issues in Detroit facility. US FDA has also completed follow up inspection for Detroit facility.
  • Other expenditure for the quarter increased by whopping 2000 bps as percentage to sales, net of stock adjustment to 40.9% (Rs 423.99 crore in the quarter as compared Rs 266.11 crore in the corresponding pervious period). The jump in the expenditure is on the back of products recalled in Caraco Pharmaceuticals (Company subsidiary) and forex losses.
  • Currently 500 scientists are working in the company and filed 230 patents of which 76 patents were approved.
  • Cash on the books as on 31st March’09 is Rs 3500 crore.
  • Domestic formulation grew by 81% to Rs 652.58 crore for the quarter ended March’09 and contributed 56% of total sales. The spurt in sales is mainly on the back of launching of one time (exclusivity) products and change in the products distribution models. The push in the domestic formulations in the quarter under review will lead to slow down in the first half of the current financial year.
  • Domestic formulation for the year grew by 33% to Rs 1959.66 crore. Excluding the sales from the one time (exclusivity) products sales increased by 25%.
  • Company has launched 9 control substance products in January 2009.
  • R & D expenditure for the quarter stood at Rs 74.84 crore and for the year at Rs 332.04 crore.
  • Company currently holds 36% in Taro Pharmaceuticals. Company need to invest Rs 1000 crore to acquire remaining stake in Taro.
  • Sun Pharma now holds 3.5% market share in the highly competitive pharma market, as per latest IMS ORG report.
  • Company has launched 17 products in the quarter taking total for the year to 42.
  • The company continues to rank number one by prescription share with 6 classes of specialist doctors, as per the latest report from CMARC.
  • Sun Pharma has filed 5 ANDAs where as Caraco filed 4 taking total filings on consolidated basis for the quarter to 9. For the year, company along with subsidiaries filed 37 ANDAs as against a guidance of 30. As on 31st March’09, 108 products await US FDA approval, including 7 tentative approvals.
  • A cumulative of 129 DMF/CEP applications has been made, with 71 approved so far.
  • Expects R & D expenditure would be around 7-8%.
  • Expects to file 30 ANDAs with US FDA.
  • Capex for FY’10 would be around Rs 170 crore.
  • Expects revenue growth of 13-15% on consolidated basis for FY’10.

Voltas Order Inflow is low, but Order Book is healthy

June 2, 2009 · Filed Under conference call · Comment 

Highlights of the call

The company has crossed milestone of Rs 4000 crore of turn over in FY 09. The total Revenues of the company stood at Rs 4063.85 crore (up by 33%), of which Rs 1500 crore came from International operations. Net Profit of the company was up by 21% to Rs 251.10 crore.

For the quarter ended March 09, the company has recorded 48% growth in its top line to Rs 1253.84 crore mainly driven by international revenues which increased by more than 3 folds (205%) to Rs 597 crore. However, the domestic revenues were nearly flat at Rs 658 crore as against Rs 655 crore in the corresponding previous quarter.

EVA (Economic Value Added) of the company by the end of FY 09 is positive and stood at 22%.

The overall carry forward order book for Electro Mechanical segment as on end of March 09 stands at Rs 4718 crore (as against Rs 4623 crore in corresponding previous year). The domestic order book pertains to Rs 990 crore of the total order book. In addition, the company has bagged Rs 300 crore worth of works from Kolkata and Chennai and an order from Hindustan Zinc also. The company has also observed steady growth in the Water Treatment business and has bagged Rs 50 crore worth of orders in FY09.

In the domestic market, the thrust on offering integrated MEP solutions continue and the same has resulted into order book position per year end showing a growth of 17%. The domestic electro mechanical business order book included 65% of stadium projects for prestigious Common Wealth Games 2010 in New Delhi, Godrej waterside Tech Park, Kolkata and orders in Industrial Sector.

The company is confident in portraying its growth rate in FY10 also, as it has covered its execution cycle for next 1-1 ½ years with significant orders to generate cash flow.

The Electro Mechanical projects and services segment revenues grew by 55% principally through execution of large overseas projects. These include prestigious projects such as District Cooling Plant at Dubai, International finance center and Burj tower projects (Dubai, UAE); Formula 1 Racing Track, Ferrari experience Ethihad towers complex (Abu Dhabi UAE); Bahrain City center (Bahrain), Sidra Medical and research centre (Doha, Qatar); and Sentosa Bay District cooling plant (Singapore).

The Burj Tower project that was a part of Dubai projects will be completed by September 09. The Ferrari project is expected for completion by December 09.

The Company is facing constraints largely on maintaining the number of days’ receivables in Electro Mechanical projects and services segment. The Company has been successful in growing its MEP business and this business comprises about 25% of the Order Book.

On the international front, various regions in the Middle East have announced their budgets for the coming year. According to these, there are likely to be significant Government backed investments in Abu Dhabi, Qatar and Saudi Arabia giving a boost to their economies. Crude oil prices seem to have stabilized over the recent past, and if they continue at similar levels, there will be less concern about budget deficits.

The company has also enquires from the international front particularly in Abu Dhabi and Qatar, but the order inflow time will be very high ranging from to 9-12 months. However, Irrespective of crude prices, the company feels that governmental investment in infrastructure and industrial projects in these regions are likely to continue, although their pace of finalization and implementation may be somewhat slow.

On the domestic front also the order enquires have came down, but with the government stimulus packages and slow improvement in the scenario of capital formation, the company was bullish in acquiring orders in short to medium term.

In order to accelerate the presence in Industrial segment, Voltas acquired 51% stake in Rohini Industrial Electricals in September 08. The company’s scope of Electro Mechanical offerings has consequently widened to include electrical and instrumentation contracts for projects in the domains of power, Steel, Oil and Gas, Pharma, Textile and other industries. This can be leveraged by both the domestic and overseas markets. Rohini Industrial Electricals has reported robust growth of 90% both in the top line and bottom line for FY09.

The Engineering Products and services segment constitute Textile machinery business, Machine handling business and Mining and construction business. This segment has reported dip in the profits at the segment level by 77% to Rs 7.12 crore, as the economy lags in capital formation.

The slowdown in Textiles Machinery business continues. However, with the garment exports posting rising trend in recent months supported by low rupee value against USD, the industry expects that the Textile Machinery market may turn the corner post mid-2009, although the recovery may be slow.

Material Handling Business has been slowing down in the recent past. An important positive is that with Rupee depreciation, imported machines have become prohibitively expensive, at both the low and high ends, making the market less competitive for Indian products.

The Mining and construction business has shown slow down along with the industry. The company has accumulated lot of Inventory in this business, which will be liquidated by the end of H1FY10.

The unitary cooling products business segment revenues achieved a growth of 11% to Rs 913.75 crore. In the room air conditioners, Voltas has registered sales growth of 8% as against market growth of 6% and increased its overall share to 16.5%. This was possible due to innovative product offerings based on energy efficiency and expansion reach. Commercial Refrigeration’s produces developed and manufactured at company’s new plant at Patnagar exhibited growth due to better product offerings and increased focus. The company has geared itself for making Pantnagar as the base for manufacturing the unitary cooling products.

The cash in hand of the company was Rs 121 crore, which is invested in Mutual funds as on March 31st 09. As on date the cash in Investments of the company has increased to Rs 190 crore.

Turnover per Rupee of employee cost, in the domestic market for Q4 FY09 is higher at Rs 16 against Rs 14 in the same quarter last year. In the similar lines, on the international front, it improved to Rs 8 per employee as against Rs 6 in the corresponding previous year.

The Board of Directors has recommended a dividend of Rs. 1.60 per share of Re 1/- each (160%) for the year 2008-09 (previous year: 135%).

IVRCL Infrastructure & Projects Expects Rs 6500 crore sales in FY10

June 1, 2009 · Filed Under conference call · Comment 

Key takeaways of the conference call

Revenue break-up for FY09 sales is – Share of water projects to sales is about Rs 2500 crore; that of Building is Rs 1000 crore; Power is Rs 600 crore and Transportation is Rs 600 crore.

Order book as end of March 31, 2009 was at 14500 crore and of which about 69-70% is accounted by water & irrigation projects. The company is placed as L1 for orders worth about Rs 1200 crore. The company expects to close the current fiscal with an order book of Rs 16-18000 crore.

Expects to conclude the current fiscal with a topline of Rs 6500 crore. The EBITDA margin will be around 10.2% given the current order book mix.

Capex for current fiscal is Rs 75-100 crore. The planned capex for current fiscal will vary depending on the project, if a project requires new equipments then it will go up or the projects inflow for the fiscal is of same type and could be executed with current fleet itself then it will be lower at the end of the fiscal.

IVR Prime, the subsidiary of the company is not to take up any commercial realty projects but expected to launch 3- 4 projects residential projects. The company expects to start work on building Sriperumpudur low cost housing. This project is expected to have a price tag of 2500-3500/ sft. Similarly the low cost housing project in Hyderabad also to be launched with same price tag. As far as Noida the company will reengineer the project where it has foundations in place. Nagpur, pune, noida, Hyderabad and Chennai will be the focus areas.

Current year margin came under pressure on account of project mix as well as provisioning towards bad debt amounting Rs 3-4 crore. In order to buildup Pre-qualifiaction criteria especially in some new verticals, the company was forced to bid aggressively for some projects compromising margins. The company bid for quite few power projects to muster PQ criteria and this contribution being higher in the fiscal the margin came under pressure. These projects were coming to an end and thus the margin could start pickup from 3rd quarter of current fiscal.

AP itself is going to come out with Rs 25000 crore of irrigation orders.

Dividend income is called as other income. Other operating income (clause 49) some of the projects and consists

As end of March 2009, the Debtors is Rs 1150 crore, Inventory is Rs 800-850 crore, Loans to Subsidiaries is Rs 370-380 crore

Debts /Loan fund were Rs 1400 crore as end of March 2009. Debt largely of working capital loans. Apart from WC loans that also includes outstanding FCCBs, NCD. The current interest cost is about 10 to 10.5%.

BOT projects – The Kumarapalayam Tollways that builds, the 47 Km stretch between Kumarapalayam and Chengapalli in TN has completed. The Salem Tollway’s road project will complete by Oct 2009. Jalandar-Amritsar road project will get completed by Sep 2009. The delay in BOT projects is largely on account of Right of Way (RoW).

On Power sector TL & substations is a big business. It has enough PQ capability for RE projects, Transmission Lines of 220 kv, 440 kv. The company has now bagged a 765 KV Transmission Line project on trial basis from PowerGrid. Generation side the company is bidding for BoP opportunities.

Since about 75% of the order book is in water & irrigation projects, roads the company had not made aggressive bid in these verticals and will also not do it as it has enough PQ capability in place. But in new verticals the company has to be aggressive to develop that business and that segments margin will be compromised. On overall basis with majority of order book is of high margin zone the overall margin will not suffer.

Nagarjuna Construcitons Expects sales turnover of Rs 4800 crore on standalone

June 1, 2009 · Filed Under conference call · Comment 

Key takeaways of the call

Order book as end of March 31, 2009 is Rs 12197 crore. Of which the share of orders of Building is 21%, roads 8%, water and environment 20%, electrical contracts 5%, irrigation 5% , mining 3%, international orders 21%. The balance comprises of orders from power, metals, oil & gas and others.

Order intake in FY09 is Rs 6600 crore and during the fiscal (FY09) the cancellation of orders amounts Rs 1226 crore. Thus the net accretion to order book is around Rs 5400 crore.

The company expects a sales turnover of Rs 4800 crore on standalone basis for FY2010. On consolidated basis the company expects a turnover of Rs 5500 crore. EBITDA margin for FY10 could be around 9.5% compared to 9% last fiscal.

In the last four months there is slowdown in awarding orders due to elections. But the company expects an order intake of Rs 6500 crore in FY10.

NCC has clocked 12% drop in standalone revenue (to Rs 1098.05 crore) for the quarter ended March 2009. With operating margins contract by 110 basis points the degrowth in profitability at operating level were accentuated to 23% to Rs 83.77 crore. With lower other income and higher interest cost adding woes further resulting in 37% drop in profitability at PBT level. As lower tax incidence gave some comfort, the company has finally concluded the quarter with 27% drop in net profit to Rs 38.21 crore.

Standalone sales for the fiscal were up by 20% to Rs 4151.41 crore. With OPM contract by 140 bps to 9% the operating profit was limited to Rs 373.67 crore, up by just 4%. With lower other income and higher interest cost the PBT was lower by 7% to Rs 228.17 crore. With taxation lower by 11% to Rs 74.31 crore the company closed the fiscal with a net profit of Rs 153.86 crore, with fall in profitability limited to 5%.

Fall in revenue and reason for failing to achieve the stated sales guidance for FY09 (of about Rs 4500 crore on standalone and Rs 5000 crore on consolidated basis) is due to combination of factors: cancellation of one oil & gas order bagged in consortium resulting in reversal of revenue to the tune of Rs 120 crore, delay in payment from clients in some of the electrical orders (amounting Rs 50 crore) and revenue/business loss on account of cancellation of orders (amounting Rs 100 crore in relation to Rajivgandhi University of Health Sciences & Rs 50 crore on account of Maytas imbroglio) and slowdown in real estate sector amounting Rs 22-25 crore.

On profitability side, at EBITDA level the margins were hit as the company has incurred loss to the extent of 25-30 crore on account in some of the road projects. Fall in margin on account of road projects at EBITDA level is about 1-1.5%. At net level the company is not claiming 80 IA benefits and this hit the margin on yoy basis.

In FY09 the international subsidiaries clocked sales of Rs 550 crore and in current fiscal (FY10) the company expects a turnover of Rs 700 crore from its international subsidiaries. The EBITDA expected is around 10-12% with PAT at 6%.

Expects vertical such as Building, Water and Environment along with international projects are going to be the growth drivers for next 2 years for the company. The company even though has stepped into metals and mining sector projects, it will take at least 2 years to have a firm hold on these segment to really become a significant growth drivers. On the other hand the company is conservative on road projects. The power sector also looks bullish for the company.

Planned capex in FY10 in capability buildup is Rs 100 to 110 crore. The company has also has an equity infusion commitment of Rs 140 crore in its subsidiaries or SPVs in current fiscal.

Secured and unsecured loans is about Rs 1244 crore as end of March 31, 2009. Cash on hand is Rs 134 crore. The gross block is Rs 487 crore and investment in B/Sheet is Rs 740 crore as end of March 31, 2009.

Dubai order out of international orders is Rs 800 crore. These projects are on schedule. NCC Urban has a realty project NCC Urbane at the cost of 200 crore in Dubai and it was hit by slowdown. Tower one is already sold. Gone for design modification so as to tower 2 can be build latter.

The international orders includes the realty project contract amounting Rs 900 crore issued to the international subsidiary by NCC Urban and that sector going downturn the company is not expecting much of revenue from that.

Sales turnover of NCC Urban, the real estate subsidiary of the company was Rs 140 crore in FY09 and the PBT is Rs 9.92 crore.

In FY10, NCC Urban is expected to clock a turnover of Rs 150 crore. The debt on the books of NCC Urban is Rs 193 crore including the Rs 102 crore debts for the Ranchi project. The equity base of the company is RS 150 crore.

The company is looking at an EBITDA margin of 10-12% for its recent projects.

On the reversal of turnover of Rs 120 crore on account of O&G project bagged in consortium with Naptho Gas of Ukraine, the company has retained a profit of Rs 7 crore that being assured profit as per the JV agreement.

Irrigation projects – The Company has not bagged any irrigation orders in last one year. Though the incumbent government was voted back in AP the state is expected to focus more on the entire irrigation project already tendered out and awarded rather than taking up new projects. However the company expects significant irrigation order to flow in from states such as MP, Orissa, Gujarat and the irrigation orders from these states are actually picking up.

Ranch project Phase I is completed. The games will happen in current fiscal. Out of total 990 dwelling units the company has already sold about 200 odd dwelling units and the demand is picking up.

Interest cost is at 11.5%. The short-term loan rates have come down and the company has recently raised a short term loan with an interest rate of bout 9.5%.

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