HDFC Securities: JMC Projects Posts In-Line Q1 Performance  
Construction workers carry ready-mix concrete to an overpass construction site on India’s National Highway. (Photographer: Sanjit Das/Bloomberg News)

HDFC Securities: JMC Projects Posts In-Line Q1 Performance  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

HDFC Securities Report

JMC Projects India Ltd. Q1 FY21 financial performance has been severely impacted as its order book has a high exposure to the worst-affected urban regions, mainly in the buildings and factories segment (58% of order backlog).

With almost a one-month loss due to the lockdown, execution is now gradually ramping up with labour availability improving from 60% to 75% QoQ. Despite weak execution, order intake has been robust at Rs 34.3 billion excluding - Level one (L-1) of Rs 17 billion (JMC projects to surpass inflow guidance of Rs 50 billion).

We expect FY21E to mark new beginnings with (1) likely restructuring of two build operate transfer (2 BOT) assets (would cut loss funding to Rs 500 million versus Rs 800 million for FY20) and (2) order accretion from international geographies.

Click on the attachment to read the full report:

HDFC Securities JMC Projects Q1FY21 Results Update.pdf

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