Cost-optimisation efforts across all levels helped us maintain profitability
Sep 11 2019,11:09 AM CW Team
JMC Projects is a construction and infrastructure company with operations spread across India, SAARC and Africa. It caters to a range of business segments in various formats with its integrated capabilities spanning the spectrum of EPC solutions with safety, quality and on-time delivery as its three pillars. Over three decades of a strong, customer-focused approach and a sharp focus on world-class quality have enabled it to maintain a leadership position in its major lines of business. Characterised by professionalism and high standards of corporate governance and sustainability, JMC continues to evolve, seeking better ways of engineering to meet emerging challenges leveraging the power of ‘people-processes-technology’.
The order book of the company is over Rs 100 billion as on May 31, 2019. Shailendra Kumar Tripathi, Deputy Managing Director & CEO, shares more....
Name one major challenge faced in FY2018-19. How did the company tackle it?
Changes in regulatory norms like RERA and GST and tightening of liquidity in the market were two major challenges we faced. We had a proactive approach in our ERP upgradation project with the latest technology, which enabled us to face dynamic changes in real time. We worked closely with clients and vendors by aligning ourselves to these changes. Financial discipline and cost-optimisation efforts across all levels helped us maintain profitability and sustained growth during the year.
Name one decision you consider the biggest contributor to the company’s growth in FY2018-19.
In FY18-19, we were able to win more orders in the water sector. Our repeat orders from existing clients, coupled with execution excellence and digital initiatives, provided us the required growth in both the topline and bottomline.
What is one single factor you avoided that could have otherwise impacted the company’s topline and bottomline?
Given the tight liquidity in the prevailing market, we have taken a conscious call to lay emphasis upon financial due diligence and closure before we decide to participate in a bid for any project. Our philosophy has always been on scalability and business sustainability by engaging various stakeholders, performing to the best of our ability and creating value.
What are your plans for the company’s growth in FY2019-20?
During the past two to three years, JMC has grown at a healthy pace of 20+ percent. Considering the Government’s push on infrastructure, we are looking at a sizeable pie of projects in roads, flyovers, expressways, railways, urban infra and water this year. Given our successful project implementation in the global arena, we are also targeting to increase the share of our international business in new emerging markets.
|JMC Projects (India)
||Net Sales||EBITDA||Reported PAT|
|FY19 (Rs Billion)||34.07||4.56||0.76|
|Growth over FY18 (%)||17.97||14.90||185.44|