• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Mamuni Das

Ircon is in talks with the Uttaranchal Government to take up hydro-electric projects in the State. — MR B. S. KAPUR, MANAGING DIRECTOR, IRCON INTERNATIONAL

Ircon International, the construction arm of the Indian Railways, hopes to build revenues of Rs 1,700 crore in 2006-07 against Rs 1,103 crore the previous fiscal.

The company is backed by an order book of Rs 5,250 crore. It is in talks with the Uttaranchal Government to take up hydroelectric power projects.

"We are poised for a turnover of Rs 1,700 crore in the current financial year compared to a turnover of Rs 1,103 crore in the 2005-06 fiscal," said Mr B. S. Kapur, Managing Director, Ircon International, in an exclusive interview to Business Line.

Excerpts from the interview:

On order book:

The firm is backed by a strong order book position. "As of April 1, we had an order book of Rs 5,250 crore.

Of the total, Rs 1,900 crore is business from railway sector, while the rest is from other sectors including road."

This shows a strong growth against an order book of Rs 482 crore in 2001-02. Starting from 2002-03, the company's order book has moved north. In 2002-03, it bagged orders of Rs 1,240 crore, which further went up to a high of Rs 1,867 crore.

On margin pressure:

The company's margins appear to be under pressure. For the quarter ended June 30, Ircon's turnover was up 52 per cent against the corresponding quarter in the previous fiscal touching Rs 28.9 crore.

However, the net profit was up 24 per cent at Rs 17.78 crore for the quarter.

"There is a pressure on our margins owing to increasing competition and inflation."

Several smaller Indian players are now tying up with foreign firms with experience in rail track work to enter the railway construction sector.

Light rail market:

Ircon is in talks with various foreign companies to form a consortium to undertake turnkey light rail systems projects.

"We are in talks with firms having experience in manufacturing rolling stock, as well as constructing and building light rail transport systems."

Since Ircon is sitting on an order book about 4.5 times the turnover, it would like to go relatively slow in bidding for new projects.

On power project:

On the status of its earlier plans to diversify into the hydro-electric power projects, Dr Kapur said the company is in talks with the Uttaranchal Government to take up projects in the State.

Ircon is also in talks with Indian Railway Finance Corporation for a long-term tie-up so that IRFC raises funds for Ircon's forthcoming BOT projects.

"We may need to raise funds for our build-operate-transfer projects."

More Stories on : Interview | Railways | Power

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Fire in Chennai-Hyderabad Express

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line