BCPL Railway Infra receives order worth Rs. 164 Mn from Howrah Division - Electrical, Eastern Railway

BCPL Railway Infrastructure Limited is delighted to update its esteemed stakeholders that the Company has received a Letter of Acceptance (LOA) from Howrah Division - Electrical, Eastern Railway.

This LOA has been received for Design, Drawing, Supply, Erection, Testing & Commissioning of 25KV Overhead Equipment (OHE) in connection with Liluah-Bally Conversion of unregulated OHE to regulated OHE in Liluah-Bally Chord Line Section and Saktigarh-Barddhaman Section (PH-III) in Howrah Division of Eastern Railway. The total size of the order amounts to ~Rs. 164.20 Mn which is expected to be executed over a period of 24 months. The recent order adds to the strong orderbook position for the Company of around Rs. 2 billion.

Commenting on the same, Mr. Aparesh Nandi, Chairman said, "We at BCPL Railway Infrastructure Limited are pleased to inform our stakeholders on our recent order intake from the Howrah Division - Electrical, Eastern Railway. The value of this order is ~Rs.164.20 Mn and we are quite optimistic about the pipeline of orders in the coming months and in near future also. We expect to end the year on robust orderbook."

BCPL Railway Infrastructure Ltd has developed its niche into the Railway Electrification projects with rich expertise built over 2-3 decades. Its skills in designing, engineering and project execution are one which stands BPCL apart over its peers. The company has demonstrated its skills in executing and implementing projects even in the most difficult terrains and situations, which augurs well for its long-term growth prospects.

The company boasts of strong leadership team led by the promoters and equally supported by experienced team of Engineers to effectively and efficiently execute projects on a timely basis. It has built excellent track record of project execution, which has resulted in building strong relationships with its vendors and railways authorities. As a result, the company has managed to post consistent performance in terms of order book and financial performance.

The company has strong presence of projects on hand and execution mainly on the Eastern Part of the country like West Bengal, Chhattisgarh, Bihar, Odisha and Jharkhand and other regions like Punjab, Haryana, Delhi and Andhra Pradesh. It is taking all the efforts to widen its geographic presence pan-India in coming years.

Consistent Financial Performance:

The company has registered consistent improvement in its financial performance - both in terms of revenues and profitability. Revenues of the Company has grown at a CAGR of 31.05% in last 5 years ended FY20. Moreover, EBITDA and PAT have also grown significantly. In FY20, the company has reported a total income of INR 1286.49 Mn with EBITDA and net profit of INR 146.90 Mn and INR 98.43 Mn respectively. During FY20, EBIDTA and PAT Margins stood at quite healthy levels of 11.4% and 7.7% respectively, which is better than any major peer company in the segment.

During H1FY21, the company has reported a total income of INR 190.14 Mn with EBITDA and net profit of INR 44.34 Mn and INR 26.76 Mn respectively. EBIDTA and PAT Margins stood at 23.3% and 14.1%, which is marked improvement on account of cost savings measures undertaken during the time of pandemic.

The operations of the Company had been affected due to COVID 19 obstacles as a result of severe shortage of man power because of the restrictions of the movements, in compliance of the protocols implemented by the Government of India and the State Governments with a view to protect our country from the severe effects of the Global Pandemic. However, with economic activity back on track and a decent order book in place, the company is expecting to improve it execution over the medium-to-long term in the current financial year and next financial year. Furthermore, the company is also expecting strong order inflows, which would offer growth visibility over the coming years.

The company also has very strong balance sheet with Networth of INR 667.36 Mn at the end of September 2020. Despite in the infrastructure sector and prevailing pandemic, the company has managed to keep its debt levels under control, with Net Debt / Equity ratio at just 0.1x, which is quite commendable for the company. A healthy balance sheet is likely to help the company in scaling up its operations significantly as infrastructure spending steps up in the coming years.

Industry Overview:

Railways are the lifeline for Indian Passenger and Freight movement. Indian Railway boasts of 3rd largest railway network in the World, which is one of the main pillar for driving our economy. Government has laid major thrust in strengthening the railway infrastructure of our country by way of upgradation, modernizations and new mega greenfield projects like Dedicated Freight Corridors, Bullet Trains, etc.

With an aim to improve the efficiency of the rail performance and move save cost and also a step towards greener energy, Railways has taken substantial measures of electrification of the rail network in the country. Railways has substantially increased its electrification program, which has registered an increase of ~16% CAGR over the past few years. Indian Railways has aimed for 100% Electrification, which would result in savings of around INR 810 billions in fuel costs till FY2027 to the Railways.

Shares of BCPL Railway Infrastructure Ltd was last trading in BSE at Rs.106.5 as compared to the previous close of Rs. 107.9. The total number of shares traded during the day was 99672 in over 200 trades.

The stock hit an intraday high of Rs. 107.9 and intraday low of 102.75. The net turnover during the day was Rs. 10499809.

Source : Equity Bulls

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