We will con­tinue to ex­plore op­por­tu­ni­ties in In­dia

Dalal Street Investment Journal - - COMMUNICATION FEATURE -

im­pacted avail­abil­ity of man­power for de­ploy­ment across var­i­ous projects. This, in turn, im­pacted the pro­jected rev­enue flow from these projects.

Be­sides, some of the com­pany’s or­ders in Ma­nipur faced ex­e­cu­tion chal­lenges due to elec­tions in the state. The eco­nomic ac­tiv­ity was halted dur­ing the last quar­ter. How­ever, the projects were back on track at the fag end of the fourth quar­ter.

In ad­di­tion, the com­pany was ex­pect­ing to rec­og­nize rev­enue from its sleeper fac­to­ries set up in Ut­tar Pradesh for DFC in the sec­ond half of FY17. But both the man­u­fac­tur­ing fa­cil­i­ties saw de­lay in RDSO ap­proval for com­mer­cial pro­duc­tion.

It should be noted, though, this is only a de­fer­ment of rev­enue to the cur­rent fi­nan­cial year and in­volves no loss. Ac­tiv­i­ties have picked up in the two fa­cil­i­ties, one of which started pro­duc­tion in March and the other in June. In­dia where the fo­cus on rail­way in­fra­struc­ture is in­creas­ing. The rail­ways’ capex for 2017-18 is ₹1.3 tril­lion, which is the high­est ever cap­i­tal out­lay. We cur­rently plan to tap the In­dian mar­ket that of­fers mas­sive prospects for growth. How­ever, as far as the sleeper seg­ment is con­cerned, DFCC con­tin­ues to be a fo­cus area for us and we ex­pect to bag new or­ders as there would be sleeper re­quire­ment for the new cor­ri­dors. We are also fo­cus­ing on re­quire­ments for con­crete sleep­ers in ASEAN and SADC mar­kets, where we are work­ing presently and ex­pect­ing an uptick in eco­nomic ac­tiv­ity.

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