India’s infrastructure sector continues to be a key driver of the nation’s economic progress. Despite battering through an ever growing gauntlet of challenges like rising interest rates, inflation, sluggish order inflows and squeezed profitability, the infrastructure sector continues to perform convincingly better, thanks to a number of companies who stood up the test of time and are creating a legacy for others to emulate. Construction Week India takes this opportunity to acknowledge the top 30 performing companies in the infrastructure sector shaping the India of tomorrow, today. This story presents a bright constellation of some of the top performing companies, analysing their growth story on how they have managed to ride out of the sunset and are at the top, by a mile. It zooms in on companies which are ahead of the lot, with impressive market capitalisation, order book standing and diversity of projects on about a year’s horizon (April 2010 to June 2011).Primarily, our quest was to delve into the performance of the infrastructure industry and hunt for India’s most admired companies in this space and highlight the critical role played by these true ‘nation builders’.
The rationale behind the selection of companies was simple, but with a mix of evaluative methodologies.
Construction Week India editorial team relied on the prowess of equity research reports, corporate filings, market perceptions, to name a few to decide on the cream of the crop companies. Initially, 50 companies were picked out. Subsequently, we had to count out some of the companies as they did not match up with our performance-based prerequisites. How did we do it? We collated information on the 50 shortlisted companies. To this illustrious list, a filter was applied on the statistics, which was culled out through in depth research and examination of company filings. The process threw light on the strong point as well as the Achilles’ heel of every company. Subsequently, the information was analysed and subjected to a formula in order to figure out which 30 infra companies were best performing.
The final ranking of the ‘Top 30’ infrastructure companies was based on a comprehensive quantitative and qualitative analysis of the overall business performance of every company. It comprised peer comparison, order book analysis, assessment of the diversity of projects as well as execution capabilities of these companies.
So join us in this endeavour and see how these companies are contributing to India’s growth story.
No 1: Larsen & ToubroWith well-capitalised balance sheet coupled with robust execution mechanism, a wide array of capabilities, integrated operations, strong portfolio of assets and a colossal order book of over Rs1,30,000 crore makes Larsen & Toubro a proxy to India's infrastructure story and Construction Week’s top pick in the sector.
The group continues to hold a unique place in the Indian E&C space as a diversified and leading engineering player, with exposure in the areas of power, defense, nuclear and equipment.
During 1QFY2012, it posted decent numbers and stands tall on an order backlog of Rs1,36,172 crore. Its order inflow for 1QFY2012 stood at Rs16,190 crore, up 3.6% year-on-year. Similarly, over 90% of its order book came from the domestic sector, while Middle East barely accounted for 6%. The share of the public sector orders in Q1FY12 order book compared to Q1FY11 declined from 47% to 38%, while the private order backlog rose from 40% to
45%.
The recent order wins (excluded in the order book) by the group are from different sectors, such as oil & gas, power, roads, etc. Some of the key orders won by the group include Rs3,500 crore gas-based power plant EPC order from PPN Power, Rs1,400.5 crore GSPC contract for offshore process platform in the KG Basin and Rs4,100 crore for buildings and factories IC.
During FY11, the group had registered an impressive performance on all important parameters. Its order inflow witnessed a growth of 15%, and the order Book position stood at Rs 130,217 crore, which was in excess of two years of backlog. According to reports, its order inflows were also marginally affected due to holdups in the tendering process, which included environmental approvals, land acquisition and political issues. The company is also witnessing good traction on the international front and sees a huge pipeline.
The group expects to clock 25% revenue growth for FY2012 despite several headwinds which are plaguing the sector. On the order inflow front, the company expects 15–20% growth which appears to be achievable in view of its leadership position and project diversification.
The group continues to hold a unique place in the Indian E&C space as a diversified and leading engineering player, with exposure in the areas of power, defense, nuclear and equipment.
During 1QFY2012, it posted decent numbers and stands tall on an order backlog of Rs1,36,172 crore. Its order inflow for 1QFY2012 stood at Rs16,190 crore, up 3.6% year-on-year. Similarly, over 90% of its order book came from the domestic sector, while Middle East barely accounted for 6%. The share of the public sector orders in Q1FY12 order book compared to Q1FY11 declined from 47% to 38%, while the private order backlog rose from 40% to
45%.
The recent order wins (excluded in the order book) by the group are from different sectors, such as oil & gas, power, roads, etc. Some of the key orders won by the group include Rs3,500 crore gas-based power plant EPC order from PPN Power, Rs1,400.5 crore GSPC contract for offshore process platform in the KG Basin and Rs4,100 crore for buildings and factories IC.
During FY11, the group had registered an impressive performance on all important parameters. Its order inflow witnessed a growth of 15%, and the order Book position stood at Rs 130,217 crore, which was in excess of two years of backlog. According to reports, its order inflows were also marginally affected due to holdups in the tendering process, which included environmental approvals, land acquisition and political issues. The company is also witnessing good traction on the international front and sees a huge pipeline.
The group expects to clock 25% revenue growth for FY2012 despite several headwinds which are plaguing the sector. On the order inflow front, the company expects 15–20% growth which appears to be achievable in view of its leadership position and project diversification.
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