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| Edited By: G Seetharaman |Source: DNA |Updated: Mar 30, 2018, 02:04 AM IST
B L Kashyap & Sons, the New Delhi-based construction company, is keen on increasing the share of civil contracts from public sector units (PSUs) and corporates in its order-book, managing director Vineet Kashyap said.
The company has traditionally been a real estate contractor but the realty meltdown seems to have made the company cautious about the sector.
“Our direct exposure to developers in our order-book has come down from about 70% to 35% now,” Kashyap said. At the same time, the share of projects from PSUs and end-users like corporates has shot up.
The company has unexecuted orders worth about Rs2,600 crore. Kashyap said the company is currently adding orders worth about Rs150 crore a month on an average and executes projects worth Rs90-100 crore every month. About 15% of the order-book comes from work for PSUs. “We are doing a Rs140 crore township for the HPCL-Mittal refinery in Punjab and we are the lowest bidder for a couple of other projects,” Kashyap said.
B L Kashyap is also hopeful of bagging contracts from companies to build, among other things, their corporate offices. B L Kashyap has executed civil contracts for Bharti Airtel, Wipro and Shiv Nadar University in Noida.
“Out of the 35% of real estate contracts in our order backlog nearly 25% are from affordable housing and the rest from commercial property development,” Kashyap said.
He said that the working capital cycle in commercial, hospitality and premium housing projects is still stretched. “But if the affordable housing supply exceeds the demand then those developers could be in for harder times,” Kashyap said.
He said that the company would post better numbers in the second half of the fiscal than it did in the first, given the improvement in the market scenario.
