Shriram EPC

Shriram EPC was in the limelight this week on the back of having won hefty orders to the tune of Rs.214 crore.  Of this, Rs.157 crore comes from BPCL for civil, structural and underground piping works of fluid catalytic cracking units for the Integrated Refinery Expansion Project (IREP) at Kochi refinery. The balance of Rs.57 crore came in from via two contracts from Municipal Corporation of Brihanmumbai (Sewerage Operations Department) for rehabilitation of underground sewers using trenchless technology with GRP liners.

This is good news for the company which did not end Q2FY14 on a good note. It had reported a net loss at Rs.41 crore on a 56% (YoY) decline in net sales at Rs.163 crore. The company has a hefty interest outgo. In the current Q2, it was at Rs.68 crore, which is 42% of the net sales. But this has come down from Rs.92 crore and also lower than Q2FY13, which came in at Rs.75 crore. The company recently sold of its holdings in Sree Jayajothi Cements for Rs.1400 crore, of which it will be getting 68% and this, the company hopes to use to bring down the debt in the coming months. Post this sell off, the company is now a pure EPC player. About 80% of its orders now come from the PSUs and Govt.