GRINFRA is Sustaining @ 2 Years High Zone With Positive Attitude
Order book as on 31st March 2024 is Rs 1,67,806 Mn
During the year, Company has transferred 7 operational HAM
assets to Bharat Highways InvIT
Subsequent to March 31, 2024, PCOD/ COD has been
received for below two projects
• Transmission system in Rajgarh - COD
• Galgalia-Bahadurganj (HAM) – PCOD
As on date Company has total 5 projects which are operational.
Positive factors
• Significant growth in the scale of operations on a sustained basis with substantial segmental diversification in the revenue
stream while maintaining low leverage.
Key strengths
Transfer of assets to BHIT thereby enhancing its financial flexibility
GRIL has transferred 100% stake in seven operational NHAI assets to BHIT and received units worth ₹1,929 crore during Q4FY24
thus enhancing its financial flexibility. Following the transfer of operational assets to BHIT, GRIL retains four operational assets
in its portfolio, including one NHAI annuity project, one state HAM project, and the balance two NHAI HAM projects (one project
received PCOD during Q4FY24).
As indicated by the management, the InvIT units will have a lock-in period of one year from the
date of the allotment. GRIL has also entered into a right of first offer (ROFO) agreement with the InvIT, pursuant to which, GRIL
will grant a ROFO to InvIT, thus allowing the company to unlock its equity. Additionally, dividend income is also expected from
the InvIT.
Healthy outstanding order book position of the company
GRIL had a healthy outstanding order book position of ₹₹18,680 crore as on December 31, 2023, as against ₹19,529 crore as on
March 31, 2023, indicating revenue visibility of 2.29x of the FY23 TOI. The majority of these orders are with a price variation
clause, thereby shielding GRIL’s profitability from adverse movements in the prices to an extent. The order book is also
geographically diversified with presence in more than 11 states, with no state contributing to more than 25% of the order book.
Furthermore, GRIL has segmentally diversified its portfolio by venturing into new segments of ropeway, multi-modal logistics
park, hydro power project, transmission which is expected to reduce its dependence on the road sector.
The order inflow during current year i.e. FY24 has been slow due to lower awarding in road sector. Nevertheless, healthy order
book position provides revenue visibility over medium term.
Expected range-bound scale of operations in FY24 with stable profitability
GRIL’s scale of operations have shown a healthy growth over the last five years, despite COVID-19 related disruptions.
The TOI grew at a healthy CAGR of 13% over the last five years ended FY23 from ₹4,952 crore during FY19 to ₹8,149 crore during FY23,
led by strong execution capabilities. During FY23, the TOI remained stagnant over FY22 due to a low order intake and the pending
receipt of the appointed date of eight HAM projects. The TOI is expected to remain almost stagnant in FY24; however, it is
expected to witness minor de-growth in FY25 on Y-o-Y basis due to pending receipt of the appointed date in projects. secured in
FY23.
The surge in commodity prices and intense competition in the road sector led to minor moderations in the margins of GRIL,
in line with other industry players, during the last five years ended March 31, 2023. Nevertheless, the margins continued to remain
healthy at 16.12% for FY23.
However, the margins declined to 13.32% during 9MFY24 on account of lesser execution in Q2FY24
due to monsoon and pending receipt of appointed date in HAM projects. Correspondingly, during 9MFY24, GRIL reported TOI of
₹5,532 crore as against ₹6,153 crore during 9MFY23.
During the year, Company has transferred 7 operational HAM
assets to Bharat Highways InvIT
Subsequent to March 31, 2024, PCOD/ COD has been
received for below two projects
• Transmission system in Rajgarh - COD
• Galgalia-Bahadurganj (HAM) – PCOD
As on date Company has total 5 projects which are operational.
Positive factors
• Significant growth in the scale of operations on a sustained basis with substantial segmental diversification in the revenue
stream while maintaining low leverage.
Key strengths
Transfer of assets to BHIT thereby enhancing its financial flexibility
GRIL has transferred 100% stake in seven operational NHAI assets to BHIT and received units worth ₹1,929 crore during Q4FY24
thus enhancing its financial flexibility. Following the transfer of operational assets to BHIT, GRIL retains four operational assets
in its portfolio, including one NHAI annuity project, one state HAM project, and the balance two NHAI HAM projects (one project
received PCOD during Q4FY24).
As indicated by the management, the InvIT units will have a lock-in period of one year from the
date of the allotment. GRIL has also entered into a right of first offer (ROFO) agreement with the InvIT, pursuant to which, GRIL
will grant a ROFO to InvIT, thus allowing the company to unlock its equity. Additionally, dividend income is also expected from
the InvIT.
Healthy outstanding order book position of the company
GRIL had a healthy outstanding order book position of ₹₹18,680 crore as on December 31, 2023, as against ₹19,529 crore as on
March 31, 2023, indicating revenue visibility of 2.29x of the FY23 TOI. The majority of these orders are with a price variation
clause, thereby shielding GRIL’s profitability from adverse movements in the prices to an extent. The order book is also
geographically diversified with presence in more than 11 states, with no state contributing to more than 25% of the order book.
Furthermore, GRIL has segmentally diversified its portfolio by venturing into new segments of ropeway, multi-modal logistics
park, hydro power project, transmission which is expected to reduce its dependence on the road sector.
The order inflow during current year i.e. FY24 has been slow due to lower awarding in road sector. Nevertheless, healthy order
book position provides revenue visibility over medium term.
Expected range-bound scale of operations in FY24 with stable profitability
GRIL’s scale of operations have shown a healthy growth over the last five years, despite COVID-19 related disruptions.
The TOI grew at a healthy CAGR of 13% over the last five years ended FY23 from ₹4,952 crore during FY19 to ₹8,149 crore during FY23,
led by strong execution capabilities. During FY23, the TOI remained stagnant over FY22 due to a low order intake and the pending
receipt of the appointed date of eight HAM projects. The TOI is expected to remain almost stagnant in FY24; however, it is
expected to witness minor de-growth in FY25 on Y-o-Y basis due to pending receipt of the appointed date in projects. secured in
FY23.
The surge in commodity prices and intense competition in the road sector led to minor moderations in the margins of GRIL,
in line with other industry players, during the last five years ended March 31, 2023. Nevertheless, the margins continued to remain
healthy at 16.12% for FY23.
However, the margins declined to 13.32% during 9MFY24 on account of lesser execution in Q2FY24
due to monsoon and pending receipt of appointed date in HAM projects. Correspondingly, during 9MFY24, GRIL reported TOI of
₹5,532 crore as against ₹6,153 crore during 9MFY23.
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