ARSS Infra sees revenues doubling in FY10

ARSS Infra sees revenues doubling in FY10

Mumbai: Orissa-based construction firm ARSS Infrastructure Projects, which listed last week, expects to add Rs700-1,000 crore in orders by March-end, a top official said on Friday.

These orders will be in addition to the Rs3,500 crore worth of order book the company already has, its chief executive Sunil Agarwal told Reuters over phone.

“That (the Rs700-1,000 crore order) is from railways and road projects," he said, adding it would come from various state governments and National Highways Authority of India (NHAI).

The company expects revenues to nearly double to Rs1,100-1,200 crore in FY10 and sees net profit of around 9-10% of the total revenues, he added.

ARSS Infrastructure logged FY09 revenues of Rs630 crore, according to its Initial Public Offering (IPO) papers filed with the market regulator prior to listing.

It had raised Rs103 crore through the IPO, which closed on 11 February.

ARSS Infrastructure is also expecting an additional Rs1,500 crore of projects from road and railways in April, Agarwal said.

This is besides another Rs2,000 crore contract from South Korea’s Posco, the world’s No. 4 steelmaker, which is setting up a steel plant in Orissa. That too is expected next month, Agarwal said.

In June 2005, Posco had signed a memorandum of understanding with Orissa government to set up a 12-million tonne steel plant, with production scheduled to begin by end of 2011.

ARSS Infrastructure listed at Rs650 against its issue price of Rs450 and has since risen 15.6%, against a rise of 1.28% for the BSE Realty Index. Shares in the company closed down 1.92% at Rs751.45 a share in a flat Mumbai market.