Captains Speak

Published: Dec 29, 2021
Updated: Dec 29, 2021

Capacit’e Infraprojects

We see Rs 2,000 cr revenues in fiscal 2022

“As on March 31, 2021, our company has a robust order book worth Rs 8,720 crore (excluding Mhada). Of this, 62 per cent (Rs 5,440 crore) is from the public sector and the balance from the private setor. Marquee clients contribute 75 per cent of the private sector order book,” reveals Rohit Katyal, Executive Director and CFO of Capacit’e Infraprojects. The company provides end-to-end construction services for high-rise and super high-rise buildings, townships, mass housing, etc. in the residential space, office complexes, IT & ITES parks in the commercial space, and hospitality, healthcare facilities, industrial buildings and MLCPs in the institutional space.

Giving the segment-wise break-up, Mr Katyal says that “the residential segment constitutes 22 per cent of the order book, commercial and institutional 18 per cent, while mixed use has been 60 per cent.” Commenting on the performance of the financial year gone by, Mr Katyal says,”As we enter FY22, our focus is towards increasing the pace of execution and growth. We foresee a robust performance this year on the back of revival of the real estate industry.” While analysing the performance of the company during fiscal 2021, Mr Katyal explains that “our efforts in FY21 were towards sustainability and recovery. We have made exemplary progress in our execution, operations and collection which have led to improving our revenue, EBIDTA and working capital levels. We also laid emphasis on improving our operational efficiencies by implementing various cost-control measures during the year.” Pointing out the importance of collection of receivables,Mr Katyal says, “We witnessed a significant cash collection of Rs 412 crore during Q4 FY21, indicating strong collection efficiency resulting in lower ECL provisioning and strengthening of our business model.” The company’s net debt remained stable at Rs 130 crore, translating into a net debt-equity ratio of 0.41.

FOCUS ON BIDS

Giving a road map for his company, he says, “Entering the new growth cycle, we will focus on our bid pipeline with projects on the public sector front and orders with healthy cash flows on the private sector side. We expect our current revenue to grow in the coming years, which will result in generating cash flows that lead to a debt-free balance sheet in FY23. He adds, “As project execution ramps up at large sites in FY22, the revenue momentum will remain strong.”

Referring to the business potential, Mr Katyal maintains that “the entire market size where we qualify still remains close to Rs 46,000 crore. However, we will be focusing on contracts worth Rs 7,000 crore, which include 14 hospital projects, affordable housing and super high-rise buildings. We are looking at Rs 11,434 crore worth of projects from the private sector and Rs 12,114 crore in healthcare projects. We have also participated in joint ventures for certain international projects.” The company reported revenues of Rs 908.4 crore in FY21. Elaborating on the expected FY22 revenues, Mr Katyal says,”We have a commitment of doing Rs 2,000 crore of revenues with our various clients in the current financial year, of which CIDCO will contribute Rs 700 crore.”

INDIAN REALTY SIZE

Indian real estate attracted $ 5 billion in institutional investments in 2020, equivalent to 93 per cent of the transactions recorded in the previous year. Investments from private equity (PE) players and VC funds have reached $ 4.06 billion in CY2020.