Edited excerpts:
Can you introduce your company to our viewers and what has the company achieved?
This company was established in 2003 under a plan called NRVY, National Rail Vikas Yojana, just like road development authority. It was established on the lines of NHAI, National Highway Authority of India, with similar mandate. We undertake railway infrastructure projects. Originally, we were to take the work of strengthening the Golden Quadrilateral what we call the Delhi, Kolkata, Mumbai and Chennai line and diagonals.
Can you also give us a sense of the financial picture and do you think the 30 per cent CAGR for two years can be maintained. Do you think the momentum is going to continue?
In the present government, the capital investment in Indian Railways has gone up three-fold. Earlier, up to 13-14 per cent of the annual budget of railway on capex used to be around Rs 50,000 crore. But for last three years, it is almost Rs 1,50,000 crore.
Many new works have been sanctioned with the availability of funds and we have also got the share in the increased workload and that is why our turnover has gone. We have been given more work and more funds to execute and we have met the expectations of Indian Railways by performing better and better.
What is the orderbook of the company? How will the execution lead to better revenue growth in the next couple of years?
Our order book stands at Rs 77,000 crore. This constitutes basically two types of works. One, we will complete long gestation works in say 5-7 years. These are basically the hill projects. We have hill projects in Rishikesh, Karanprayag, and Punjab, Himachal Pradesh, Bhanupali, Bilaspur. Roughly, they are of Rs 30,000 crore. A balance Rs 40,000 crore are of fast moving projects, which we will complete in next three years.
What are the high growth areas within railways? I was looking at the DRHP. There about 7-8 areas which show high growth?
Right now, the emphasis is on capacity development, which is doubling, tripling of the line. That is a first priority and that is our maximum work load and that is the maximum order we have.
Most of the private companies have been complaining that margins in railway are now going down. Competition is increasing. Can you tell us about your operating margins and the way ahead?
Right now, we have a management model. From there, we earn our profit. Our margin has been by and large consistent now. It is around 4.5 per cent of the operational income that is from construction activity.
