HDFC Securities: JMC Projects Posts In-Line Q1 Performance
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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.
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