Mumbai: Engineering and construction firm Patel Engineering hopes to grow revenue by a quarter by March, though payment delays due to Telangana agitation in Andhra Pradesh bit into Oct-Dec profits, a top official said.
The company has an order book of Rs93 billion, including US orders of around $40 million, chief operating officer Sonal Patel said at an analysts’ call on Wednesday.
The orders include projects worth Rs30 billion for which the company was selected as the lowest bidder in the previous quarters, general manager-finance Darshak Bhagat added.
“We are still optimistic that we will be able to give you a topline growth of 20-25%,” Patel said.
The Mumbai-based firm saw a net profit jump 34.64% to Rs443.5 million, while sales rose 28.13% to Rs6.33 billion in Oct-Dec.
Patel said the agitation for the separate state of Telangana in Andhra Pradesh did not have any impact on revenue, though payment delays increased working capital.
“The environment (in Andhra Pradesh) in the last quarter affected us, like everyone else. But we didn’t stop work. There has been (payment) delays.”
Power, Road, Realty
The company looks to tie up funds for its 1,200-MW thermal project in Tamil Nadu by September 2010, while its 90 MW hydro power project in the North Eastern Arunachal Pradesh state is likely to achieve financial closure a “little before” that, she added.
The firm has seen advance bookings for 1,200 flats of the 1,600 flats earmarked to be built in the first phase of its majority-owned joint venture realty project in Noida.
Patel Realty India, a unit of the firm operating in Bangalore, has already had 800 flats booked out of 1,123 flats being readied in the first phase of its project there.
Patel Realty is building a total of 4,000 residential units in Bangalore.
Patel Engineering has also bid for National Highways Authority of India’s projects worth Rs30-30.50 billion.
“Road is an opportunity that we cannot afford to ignore. It is too big a component. So we will be bidding, but making sure that we don’t compromise on the company’s bottomline,” said Patel. The company’s total debt stood at Rs14.50 billion, Patel said.
Share in the company closed down 6.64% at Rs430.25, in a Mumbai market that slid 2.92%.