Analyst Corner| With Rera, Capacite seeing faster project execution

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Updated: March 28, 2019 4:19:15 AM

The project is progressing as per schedule and is expected to be completed by October 2019.

Rera, RCC, BDD MHADA Chawl project, Tata Hospital project, penthouses, ancillary structuresThe scope of work also includes the surrounding podiums and all ancillary structures, including penthouses, duplexes, car-parks, clubhouse, swimming pool, etc.

Yes Securities

The total project cost stands at Rs 300 crore out of which Rs 170 crore worth of work has been completed. In terms of physical completion, the company has completed 43 floors in tower A and completed 39 floors in tower B. The scope of work also includes the surrounding podiums and all ancillary structures, including penthouses, duplexes, car-parks, clubhouse, swimming pool, etc.

The project is progressing as per schedule and is expected to be completed by October 2019. Total manpower deployed on this project is 700. The value of equipment like tower cranes and others (excluding aluminum formwork) on this site stands at Rs 20 crore. The value of aluminum formwork used at this site stands at `12 crore. After the project is complete, the equipment can be used in its other properties.

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The scope of work for Capacite in this project is majorly towards RCC. Being a super high-rise structure, the company expects operating margins of 20% from this project. The company is using the aluminum formwork technology in this project which leads to faster construction. With the implementation of RERA, the company is seeing faster execution cycle across projects. The regulation has only helped organised developers.

Capacite is sitting on an order book of Rs 7,500 crore (excluding recently won order worth Rs 480 crore from Municipal Corporation of Greater Mumbai) with negligible slow-moving orders. The pipeline of projects continues to be robust. The blended operation margin in the unexecuted order book stands at 15% levels (including the government orders). The company recently completed a Tata Hospital project in record time of 11 months. The company is also looking to bag more commercial projects like hospital, mall, etc. The BDD MHADA Chawl project is under design/planning stage and execution is likely to start gradually by FY20E.

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