Shriram EPC focus on government infrastructure projects
Shriram EPC Chennai-headquartered engineering, procurement and construction company will focus on government-backed projects to drive growth, according to its managing director.
The company reported its first standalone quarterly profit in five years in the three months through September. An improvement in order inflows, with support from bankers, is helping the company get back on track, it said.
According to T Shivaraman, who is also its chief executive said, their main focus will be on government-backed infrastructure projects and overseas jobs. We are seeing continuous orders from water-supply projects and see a lot of potential in sewage projects.
Shriram EPC has orders worth RS 3,236 crore on its books. A third of this is international orders, while another one-third is water infrastructure projects, and the rest from other sectors.
The water infrastructure jobs are small-ticket orders, ranging between 100 crore and 150 crore. But the company is upbeat on the robust pipeline of these orders and its ability to cap costs by focusing on some states and executing projects in a cluster of sites to utilize resources better. For this, it has identified states like Tamil Nadu, Karnataka, Jharkhand, Bihar and Rajasthan.
According to Shivraman they see enough traction in these states to keep them busy. Individual orders may not be big but cumulatively, they offer scale. He also added that, competition has moderated compared to what it was 3-4 years ago when they had a huge number of players. Pricing is more rational now with reasonable margins. This is also helping timely execution of projects.
