BCPL Railway Infra secures for electrification of a segment in Northeast Frontier Railway zone

BCPL Railway Infrastructure Limited has received an LOA from RVNL for railway electrification work at Northeast Frontier Railway zone
BCPL Railway Infra secures for electrification of a segment in Northeast Frontier Railway zone

Kolkata: BCPL Railway Infrastructure Limited has received a Letter of Authorization (LOA) from Railway Vikas Nigam Limited (RVNL) for railway electrification work at the Northeast Frontier Railway zone. This LOA has been received for the deployment of 25 KV OHE Gang to complete the residual overhead (OHE) adjustment works and provision of bonding and earthing work and safety-related works in section Sreerampur Assam – Fakiragram of NF Railway. It is expected to be executed over a period of 45 days. The recent order adds to the strong order-book position for the company of around Rs 1.65 billion, said BCPL Railway Infrastructure on Friday. 

Commenting on the same, Chairman Aparesh Nandi said, "We at BCPL Railway Infrastructure Limited are pleased to inform our stakeholders on our recent order intake from RVNL. We have already started seeing traction in the order inflow and we are quite optimistic about the pipeline of orders in the coming months. We expect to end the year on a robust orderbook."

Consistent financial performance

The company has registered consistent improvement in its financial performance – both in terms of revenues and profitability. Revenues of the company have grown at a CAGR of 31.05 percent in the last five years ended FY20. Moreover, EBITDA and PAT have also grown significantly. During 9M FY21, the company has reported a revenue of Rs 397.29 million with EBITDA and net profit of Rs 80.75 million and Rs 47.48 million, respectively. EBIDTA and PAT margins stood at 20.32 percent and 11.95 percent, which is a marked improvement on account of cost-saving measures undertaken during the time of the pandemic.

The company also has a very strong balance sheet with a net worth of Rs 692 million at the end of December 2020. Despite the infrastructure sector and prevailing pandemic, the company has managed to keep its debt levels under control, with net debt/equity ratio at just 0.1x, which is quite commendable for the company. A healthy balance sheet is likely to help the company in scaling up its operations significantly as infrastructure spending steps up in the coming years.

Industry Overview

Railways are the lifeline for Indian Passenger and Freight movement. Indian Railway boasts of the third-largest railway network in the world, which is one of the main pillars for driving our economy. The government has laid major thrust on strengthening the railway infrastructure of our country by way of up-gradation, modernizations and new mega greenfield projects like Dedicated Freight Corridors, Bullet Trains, etc. With an aim to improve the efficiency of the rail performance and save cost and also take a step towards greener energy, Railways has taken substantial measures of electrification of the rail network in the country. Railways has substantially increased its electrification programme, which has registered an increase of ~16% CAGR over the past few years. Indian Railways has aimed for 100 percent electrification, which would result in savings of around Rs 810 billion in fuel costs till FY2027 to the Railways.

BCPL Railway Infrastructure Limited

BCPL Railway Infrastructure Limited (Erstwhile Bapi Construction Electrical Engineering Pvt. Ltd) is a BSE Listed Company (BSE Code:542057), engaged in the field of railway infrastructure development. Its business activities include designing, drawing, supplying, erecting and commissioning of 25KV, 50 Hz Single Phase Traction Overhead Equipment. The key clients of the company include various zones of the Indian Railways like Eastern Railway, South Eastern Railway, South East Central Railway, Northern Railway, East Coast Railway, North Frontier Railway, East Central Railway, Central Organisation For Railway Electrification (CORE) as well as large Public and Private Sector Undertakings like RITES Ltd., Rail Vikas Nigam Ltd, Essel Mining Industries Ltd, Adhunik Group, Usha Martin Industries Ltd, Jindal Steel and Power Ltd, Rungta Mines, Haldia Energy Limited, Electrosteel and many more.

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