The Engineering Procurement and Construction (EPC) division showed a two-fold increase in revenues, indicating strong execution of projects. The company has a large EPC order book consisting also of in-house projects. The EPC order book now stands Rs 24,000 crore, nearly eight times its FY11 EPC revenues.
The company's infrastructure business is making losses at the earnings before interest level. As projects have long gestation periods, it would take a while for the segment to break even. The unit has five operational road projects and expects another five to go on-stream this quarter.
Going ahead, though electricity unit would continue to drive earnings of the company, revenue from infrastructure segment is also set to increase with several road and metro projects becoming operational. Moreover, the company has plans to buy a few distressed road projects.
Source- Economic Times