Commenting on the company’s performance in the year ended December 31, 2012, GRK Reddy, Chairman & Managing Director, MARG Limited said, "MARG Group is now better aligned with business needs and over the last year we have re-engineered our financial and business requirements to the economic and business realities. We are more focused on a lean organisation with better efficiencies and lesser overheads. Our approach is now more cash flow and bottomline centric. We are now directing our efforts to get strategic and financial partners and towards land sale so as to infuse fresh equity”.
Mr Reddy further added, “We have a rich base of satisfied customers which is growing year on year. MARG Karaikal port has a prestigious client base which reflects a diversified cargo-mix .Our real estate customers are now more than 4000 and we have built a strong real estate brand. MARG EPC has a number of international technology partners to bolster its technical competence, a cross-industrial widespread customer base and has deployed machinery and equipment worth more than Rs 260 crores”.
MARG GROUP Highlights
Unexecuted EPC order book is at ~ Rs. 3,830 crores as of Dec 2012 constituted by 19% for Group assets like Port, Mall and others and 81% for external customers including 47% for civil work for residential customers and 34% for Government, PSU and other Corporate EPC customers
MARG EPC is L1 in projects worth Rs. 125 crores including NMDC and Dept of Atomic Energy. MARG is also in the process of building a healthy pipeline of additional EPC contracts - bidding for mega contracts in the specialized areas like marine, industrial projects, urban infrastructure, solar & alternate energy sector
Tenders worth around Rs. 2000 crores is in bidding stage
Apart from this, recent approvals obtained for residential projects, infusion of funds into MARG Junction; Launch of Service Apartments will increase the EPC turnover of MARG in the forthcoming financial year
MARG Karaikal Port
MARG Karaikal Port handled 1.94 MMT of multi-cargo in Q3 FY13 taking the YTD total to 5.47 MMT. Posted revenue of Rs. 85.2 cr. in Q3 FY13 (YTD Rs. 216.4 cr) and EBITDA of Rs. 44 cr (53%) in Q3 FY13 (YTD Rs. 109.9 cr). Shown a growth of 33% in cargo, 47% in Revenue and 68% in EBITDA in Q3 FY13 as compared to the corresponding quarter of FY12
The company has entered into contracts with many major cement companies for handling their coal imports like Chettinad Cement, Dalmia Cement, Madras Cement and India Cement
Added new cargos to the portfolio like Fire clay, Lime Stone, Iron Ore, Wheat and Maize and efforts will continue to bring in additional cargos to the port Terminalisation opportunities are being explored for Coal Terminal, Liquid cum General Cargo Terminal, LNG Terminal and Container Terminal. Port has created lot of interest among national and international bulk cargo traders
6.34 Mil sqft of approved residential projects launched with a sale value of Rs. 1720 crores in 12 projects located in OMR (IT Corridor), East Coast Road (ECR), Oragadam-Sriperumpudur and Tirupati
MARG Properties sold 275 units (0.3 Mil sqft) in Q3 FY13 with sale value of Rs. 97 crores, taking the total sales to 1872 units (2 Mil sqft) with a sale value of Rs. 517 crores.
The increasing demand in Chennai market, clubbed with the brand image of MARG Properties and the unique concepts of Properties Shoppe, measure and pay and the affordable pricing continues to propel the sale of residential space of MARG Properties
Launching 340 units Service Apartments/Residences (3.2 Lacs Sqft)with a sale value of Rs. 250 crores As of now, 65% of the space in Mall has been booked by Anchors, Mini-anchors and other vanilla clients. With rentals firmed up, over 250 leading brands have shown keen interest in the Mall.
Mall will have a soft launch in June 2014 with above 80% occupancy
Urban and Industrial Infrastructure – MARG Swarnabhoomi
Light Engineering SEZ houses 10 leading industrial / manufacturing units including Grundfos, Virgo Engineering, Polyhose, Easwari Electricals, Twin Disc, Tecpro, TVS Kwikpatch
Total physical exports from the SEZ units reached a cumulative YTD figure of Rs. 32.5 crores by the end of Q3 FY13, which is almost 5 times that of Rs. 6.9 cores in the corresponding period of FY12.
With the expansion of existing units and startup of additional units the exports are slated to grow faster
Business Potential at a glance
With increments in the current cargo, new cargo from the power plants, additional container, maize and wheat cargo, Karaikal Port is expected to clock around 10 MMT in FY14 with improved EBITDA and the cargo ramp-up will expand in the further years, aided by power plants and Terminalisation of berths Residential development of around 9 Mil sqft is in immediate sale pipeline with a sale value of Rs. 2,600 crores
Education and Research Institutions, IT/ITES Training Centres and Industrial and Defense Offset units will drive the MARG Swarnabhoomi development
Unique serviced plots launched near Swarnabhoomi in 225 acres, is targeted to yield around Rs. 150 crores in two years
MARG Junction Mall which will be self sufficient in development with the cash generation from sale of serviced apartments, club membership, rental advances will be soft launched in June 2014, and will stabilize by FY 16 posting a turnover of around Rs. 100 crores
MARG EPC strengthened by infusion of funds in MARG Junction, residential approvals, launch of serviced apartments and additional orders expected in Marine, Urban Infra and oil/gas sector and recent collaborations