J Kumar Infraprojects Aiming At Rs 25,000-Crore Order Book By FY27
The company’s order book stood between Rs 19,800 crore and Rs 20,000 crore, as of June 2024.
J Kumar Infraprojects Ltd. is aiming at an order book of Rs 25,000 crore by FY27, riding on a robust order inflow so far in the current financial year.
Nalin Gupta, managing director of J Kumar Infraprojects, shared a bullish outlook on the company’s financial and operational performance.
Outlining the company’s financial trajectory and operational goals for FY25, he emphasised the company’s focus on margin improvement and revenue growth.
The infrastructure major is focusing on improving its Ebitda margin, which is currently at 15% to 15.5%, for the current fiscal.
Gupta told NDTV Profit that the company aims to raise this margin to 16% over the next six to eight quarters, expressing confidence in reaching this goal due to the strong order book and effective operational practices.
The company’s order book stood between Rs 19,800 crore and Rs 20,000 crore, as of June 30, 2024.
Gupta said that the company is currently the lowest bidder on projects worth Rs 6,500 crore. However, after accounting for the current year’s revenue, the order book for the current fiscal is expected to be between Rs 6,000 crore and Rs 8,000 crore.
According to him, the company aims to maintain an order book close to Rs 25,000 crore by March 31, 2025, indicating a conservative, yet steady approach to growth.
Looking ahead, Gupta expressed optimism about surpassing the company’s projected order book of Rs 25,000 crore by FY27, potentially achieving this milestone earlier than anticipated.
“Given the growth trajectory we’ve seen in FY24, it’s possible to reach this target sooner. J. Kumar Infraprojects prioritises a strong bottom line and financial discipline, ensuring sustainable growth alongside order book expansion,” he said.
The company aims for a revenue target reflecting a 15% increase over last year’s Rs 5,000 crore base. Gupta highlighted that while this target is strong, any additional growth would be an advantage if opportunities present themselves.
On margins, he said that an Ebitda margin of 15–16% is commendable in the infrastructure sector, where typical margins range between 14–14.5%.
“We continuously strive to improve our margins. Our focus on financial discipline, along with operational efficiencies and strategic project management, supports this goal,” he added.
Sharing details about the company’s strategic approach to project management, Gupta said that J Kumar Infraprojects operates across seven states, favouring projects in regions where it has a strong presence.
Notably, the company has executed over 50% of the Mumbai Metro project, underscoring its capability as a principle contractor rather than a subcontractor. This approach ensures that project margins remain within the company, contributing to overall financial health and efficiency.
