- Anil Kumar Singh, Managing Director, APCO Infratech
Established in 1992, APCO is a global infrastructure major with interest in the highways, energy, urban infrastructure and industrial development. Going forward, the group will actively seek opportunities in the core areas of the country's infrastructure development including the power sector. The company provides EPC services primarily focused on infrastructure construction.
Lucknow-based, it offers comprehensive value-added services of design, engineering, procurement, construction and DBFOT projects ranging from idea to implementation with efficient technical support and engineering intellect. Anil Kumar Singh, Managing Director, APCO Infratech, shares more on the company's recently bagged projects and financial growth.
How has the change in NHAI awarding projects from BOT to EPC and HAM helped companies?
The new mode of awarding projects from BOT to EPC and HAM has helped companies by eliminating toll collection risk and reducing the borrowing of fund requirement.There is slightly less competition in the HAM mode as it requires execution capability as well as financial soundness of the company.
Tell us about the key strategy applied by the company while bidding for its projects in FY17-18.
We learnt from last year that financial closure is quite a cumbersome and painful process owing to the stringent conditions of the banking system. Hence, it was preferable to get one big project rather than two to three small projects of the same value. We focused on large projects worth over Rs 10 billion for bidding in the HAM mode.
Please list your recently bagged projects under NHAI.
Most recently, we have been awarded two HAM projects: Narasannapeta-Ranasthalam (BPC Rs 13.50 billion) and the Aligarh-Kanpur Package-III (BPC Rs 13.32 billion).
Are you looking at executing projects on a consortium basis or JV? If so, why?
In the case of highway projects, we are comfortable with our execution capability and technical and financial capacity. Hence, by and large, we are not looking at executing projects on a consortium basis or JV. However, in other sectors where we are falling short in terms of technical knowhow or other parameters, we are open to JVs.
How do you intend to raise funds for these projects? Is an IPO under consideration for the company?
At present, we intend to infuse our construction profit into equity and the rest of the funds shall be arranged from banks. There is no immediate plan for an IPO.
Tell us about the company's performance in FY2017-18. And considering the current market and opportunities, what are your expectations for FY18-19?
The current financial year, ie, FY2017-18, has been good for the company in terms of both top-line and bottom-line growth. The topline has increased from Rs 12.16 billion to Rs 16.14 billion and net profit has increased from Rs 680 million to Rs 1.27 billion compared to the last financial year. We see good opportunities in FY2018-19 and are expecting growth of 15-20 per cent. However, banking issues need to be addressed immediately by the ministry.
- Shriyal Sethumadhavan