- Jagdish Gupta, Executive Chairman, J Kumar Infraprojects
With more than two decades of experience in transport engineering, J Kumar Infraprojects prides in having has an increasing and diversified order book in all business vertices including metro (underground and elevated), civil construction, roads, bridges, flyovers, pedestrian subways, skywalks, stormwater drainage, buildings, canals and piling projects. It has been awarded several metro projects including the Mumbai Metro, Delhi Metro, and Ahmedabad Metro. Jagdish Gupta, Executive Chairman, J Kumar Infraprojects, shares more on the company's plans...
What makes the company among the fastest growing small (mid-sized) construction companies?
We have wide ranging capabilities in different infrastructure verticals including transport engineering, civil construction, irrigation and piling. We have successfully completed complex structures with innovative techniques. We have an experienced management team with proven execution capabilities, and a highly experienced and qualified team to support the top management, with an overall strength of more than 3,000 employees. Further, our order book has grown from Rs 12,604 million in March 2011 to Rs 86,573.5 million as on September 30, 2017. Our expertise across verticals ensures de-risking our business model and widening the scope of our business. What's more, we have a large fleet of owned machinery and equipment that provides us with the requisite flexibility and efficiency to execute projects with ease. This model allows us to drastically reduce our dependence on rented equipment, thereby increasing our efficiency combined with cost-effectiveness and timely execution of projects. Besides, with Maharashtra being our focus area and majority of our projects geographically concentrated in and around the state, we have a strategic edge over our peers in terms of local expertise and reduced lead time for mobilisation of manpower and equipment. As on March 31, 2017, our EBIDTA margin stood at ~19.22 per cent with a PAT margin of ~7.34 per cent, and a debt equity of ~0.31, which is lowest in the industry.
What has been the company's strategy in bidding for projects?
We bid for projects where we are able to generate about 17-18 per cent EBITDA. We do not work at the size of the order book, we bid for projects that give us our expected margins.
Are you looking at procuring new construction equipment, and which type?
For FY 17-18 we required a Capex of Rs 300, which includes three new TBMs and their accessories of Rs 200 crore and and other machineries required for the execution of projects in hand.
Going forward, the Capex requirement may not be that large and annual requirements may be around Rs 25 crore.
(Communication by the management of the company)