ITD Cementation CFO Hopeful Of Faster Growth Post Adani Group's Stake Acquisition
CFO Prasad Patwardhan believes that the rejig in its structure and government’s focus on infrastructure will boost ITD Cementation India’s growth prospects.
ITD Cementation India Ltd. is set to receive a major boost from the recently announced acquisition by Adani Group company Renew Exim DMCC.
Prasad Patwardhan, chief financial officer of ITD Cementation India, told NDTV Profit that the onboarding of the Adani Group firm as a promoter will increase the company's visibility.
Renew Exim DMCC has signed a definitive agreement to acquire a 46.64% stake in the civil, infrastructure, and EPC project service provider from its promoter, Italian-Thai Development Public Co., for nearly Rs 3,204 crore.
Further, it will pick up another 26% stake in the engineering and construction company through an open offer. In total, the Adani Group company will acquire a 73% stake in ITD Cementation India for approximately Rs 5,759 crore.
Patwardhan added that this rejig in the structure and the government’s enhanced focus on infrastructure will boost ITD Cementation India’s growth prospects.
“Last year, we grew at about 40% plus and maintaining that top line growth can be difficult. But given the focus on infrastructure development and the new promoters coming into the company, we expect the pace of work to pick up,” he said.
“We will continue to execute the projects as we have done in the past and hopefully the growth rate in the current year will be better than what we have seen,” the CFO added.
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Explaining how the deal will benefit ITD Cementation India, Patwardhan said, “We have a stronger and more reputed company coming in as our new promoter. The good part is that the new promoter will have infrastructure as the focus of their business. It will be a win-win situation for us where we will have more visibility and more work coming our way.”
Patwardhan explained that the Adani Group will also benefit from its expertise in terms of engineering, construction, and execution of the projects.
The top executive emphasised that ITD Cementation India will continue to focus on enhancing its order book.
“Our order book as of September is over Rs 18,000 crore. And after the end of the quarter, in October, we have another order worth Rs 1,600–1,700 crore. So there is a good visibility of new tenders and orders. We are hoping that the order inflow will go up in the next 6 months,” he said.
Shares of ITD Cementation India closed 0.5% lower at Rs 531 apiece on Monday, data from NSE showed. In contrast, the benchmark Nifty 50 closed 0.65% higher.
