C&C Construction Ltd. - Concall Notes - Q2-FY08 Results

February 5, 2008

C&C Construction Ltd. provides EPC for infrastructure projects in India and Afghanistan. Its expertise is primarily in transportation engineering projects including roads, bridges, flyovers and airport runways. It has executed infrastructure projects both independently and through joint ventures. Currently roads dominate the revenue mix of the company.

Key Points

- C&C operates in a semi-seasonal kind of business cycle; larger share of revenues (70%) accrue during the 1st half of the calendar year (or 2nd half of its financial year ending June). It expects to book sales of around Rs. 400Cr. during 2nd half of FY ending June 2008. This will translate into a revenue growth of 62% over FY07.

- After the completion of construction of BOT toll based project, the company expects cash flows attributable to its share in the JV, of around Rs. 150Cr. p.a.

- The bid capacity of the company stands at Rs. 17 billion and has tripled in the last 3 years due to 420% in its Net worth during FY04-07 and the JVs formed.

- Equipment as % of gross block is about 90% reflecting strong asset base and less dependence on hirin. The fixed asset turnover was 2.1x and 2.2x for FY06 and FY07 respectively.

Current share price of C&C Construction Ltd. is Rs. 220

Current market capitalisation of C&C Construction Ltd. is Rs. 402Cr. ($102 million)

Download full version of C&C Construction Ltd. Q2-FY08 Results (Keynote Capitals) (pdf)

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