J Kumar Infraprojects Ltd (JKIL) has a robust order book of Rs 103.72 billion with orders across Maharashtra, Delhi, Rajasthan, Uttar Pradesh and Gujarat. The company posted a turnover of Rs 27.87 billion for FY19 and got new orders of Rs 49.70 billion in FY19, including the Pune Metro; Line 6 of the Mumbai Metro; construction of the emergency medicine, clinical and ward areas in the premises of SGPGI; and construction of the South Delhi Municipal Headquarters. Nalin J Gupta, Managing Director, shares more....
Name one major challenge faced in FY2018-19. How did the company tackle it?
The company clocked 36 per cent YOY growth in our total income and 30 per cent in PAT, despite a challenging year for the construction industry. To ensure timely completion of projects, JKIL owns a large fleet of plants and equipments required for construction. We have been able to maintain margins better than the industry average mainly owing to our large equipment bank, minimal subcontracting, backward integration and cluster approach for maximising equipment utilisation. Over the year, we have made a steady investment in people, equipment, technology and systems, and in strengthening business sustainability.
Name one decision you consider the biggest contributor to the company’s growth in FY2018-19.
The company recorded its highest ever turnover in FY 2018-19. Our approach towards timely completion of ongoing projects and building a robust and healthy order book helped us achieve this. We have successfully completed complex structures with innovative techniques. We kept our focus on acquiring challenging projects that would test our capabilities and competence.
What was one single factor you avoided that could have otherwise impacted the company’s topline and bottomline?
As a philosophy, we believe there is a right price for everything. We do not take on a project that does not meet our internal benchmarks. This can be detrimental to the client, to the project and, ultimately, to the contractor in the long run. We do not compromise our long-term vision for short-term gains. Moreover, we avoid taking works on BOT/PPP, etc, over EPC jobs to prevent any negative impact on our topline and bottomline.
What are your plans for the company’s growth in FY2019-20?
We are optimistic about the long-term prospects of our business for a number of reasons. A healthy order book in excess of Rs 100 billion gives the company visibility for the next couple of years. Further, the recently announced Union Budget has laid emphasis on the need for infrastructural development with increased fund allocation towards rural development activities like PradhanMantri Gram SadakYojana, railways, roads and highways, MRTS and metro projects. What’s more, we have expanded our operations in major states like Maharashtra, Delhi, Gujarat, Rajasthan and Uttar Pradesh. We endeavour to broaden our base and presence in a phased manner to the entire nation.
|J Kumar Infraprojects
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