Ceigall India’s Bhagat Singh Says Turnover Of Rs 1,000 Crore Expected From NHAI Projects

Ceigall India Ltd. expects the new projects from the National Highways  Authority of India (NHAI) in Ayodhya, Uttar Pradesh, to contribute significantly to its topline growth. These projects, if started next year, would add a turnover of Rs 1,000 crore, according to the company’s chief financial officer Bhagat Singh.

Ceigall India has emerged as the L1 bidder for the construction of NHAI’s  4/6 lane northern Ayodhya Bypass, with a bid project cost of Rs 1,199.3 crore and the 4/6 lane southern Ayodhya Bypass, with a bid project cost of Rs 1,299.2 crore.

Talking to NDTV Profit, Singh said that the projects, with an aggregate value of over Rs 2,500 crore, will be done in a Hybrid Annuity Model (HAM). The projects have a competition timeline of two years.

“These are both HAM projects and the company has been able to get it in line with its envisaged Ebitda margins,” Singh explained.

“If the project starts this financial year, the turnover would be close to Rs 200 crore to Rs 300 crore. If it starts in the next financial year, the aggregate turnover will be over Rs 1,000 crore,” he added.

He expects that the requisite land for the projects would be made available by the authority in the last quarter of this financial year or the first quarter of next fiscal.

Ceigall India is hopeful of a healthy order pipeline over the next two quarters, Singh stated.

“Ceigall has already bid an aggregate order value of Rs 12,000 crore, which is likely to open in the next two quarters. This will support the existing order book in the long term,” he added.

Singh shared that over 40% of the total order book of the company comprises HAM projects and the rest are EPC (Engineering, Procurement, and Construction) projects.

Ceigall India’s total order book stands at Rs 13,000 crore currently, with 55% EPC projects and 45% HAM projects. “We are a very well diversified company and are trying to make a profitable basket so that they can contribute to the revenue,” Singh said.

Talking about the company’s growth prospects, the CFO noted, “We always try to get 1.5 times the turnover executed from the authority. We try to build an order book of Rs 4,000 crore to Rs 5,000 crore every year and expect a 15-20% CAGR (compound annual growth rate) on a year-to-year basis.”