Hitesh, mentioned that he had bought Unity Infra as atrading bet. Here are some excerpts from the conference call. Hope it helps.

Conference Call      
          Unity Infraprojects
Expects 10-12% PAT growth for FY12


Unity Infraprojects held a conference call on August 24, 2011. In the conference call the company was represented by Madhav Nadkarni, CFO and Baiju Pupala, VP Commercial.

Key takeaways of the conference call

Income from Operation for Quarter ended June 2011 increased by 11% to Rs 376.03 crore. Revenue mix for the quarter was 54% from building, 32% from water and 14% by transportation. And the EBITDA was higher by 14% to Rs 54.70 crore. Eventually the PAT for the quarter ended June 2011 was nearly flat at Rs 19.58 crore compared to Rs 19.51 Cr in corresponding previous period.

Order intake in Q1FY12 was Rs 530.73 crore and that for first five months of current fiscal was about Rs 783.8 crore.

The order book as end of August 16, 2011 was Rs 3478 crore.

The company is already L1 for projects/contracts worth Rs 1550 crore as on August 2011. Of the L1 orders about 51% is building and 12% is water and balance are transportation. Currently the company has submitted bids for orders worth Rs 3900 crore, which are yet to be opened. The company expects these orders to get finalised in next couple of months.

For the current fiscal ending Marche 2012, the company expects a aggregate order intake of Rs 4500 crore. The company is positive on all three verticals with good order intake.

On the back of strong order book, as well as strong order pipeline the company is confident of achieving a topline growth of 20% and a PAT growth of 10-12% in FY12. New orders are also expected to substantially contribute to topline of current fiscal.

Of the total order book about 77% is Government orders and balance is from private players. Similarly in terms of business vertical the share of water orders is 35%, building is 53% and transportation is 12%. In terms of geographical break about 56% of the order book is from Western Region of India, Overseas 1.9% and balance all are accounted by rest of India.

About 92% of contracts have inbuilt price escalation clause.

Debt on books as end of June 2011 was Rs 870 crore with average borrowing cost is 14%.

Capex for FY12 will be Rs 45-50 crore and that for FY13 was about Rs 60 crore.

Typical margin in Transport orders is around 11%, building is about 13% and that in water/irrigation is about 14-14.5%. The company will not compromise on this margin range.

Some of the major orders bagged in Q1FY12 are – 1) Order for construction of the Main Canal, its distribution network and service road in Madhya Pradesh worth Rs 99.74 crore; 2) an order for concrete pavement of city roads in Nagpur by Nagpur Municipal Corporation worth Rs 77.50 crore; 3) an order in the construction space worth Rs 66.21 crore from Pune based Indian Institute of Science Education and Research; 4) order for two-laning of road section from Chomu to Mahal via Renwal, Jobner from Public Works Department, Jaipur worth Rs 198 crore; 5) order for construction of IRDA office complex from Andhra Pradesh Industrial Infrastructure Corporation worth Rs 57.05 crore and 6) order for construction of new Buildings from Ministry of Earth Sciences worth Rs 32.24 crore.