We will continue to explore opportunities in India
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.