Gammon sees orders doubling this fiscal

Construction company Gammon India is looking to bag orders worth nearly Rs 12,000 crore this fiscal compared to Rs 6,500 crore in 2009-10, its deputy managing director Rohit Modi said.

Gammon closed the last fiscal with an order-book of Rs 14,745 crore, a 14% jump over the previous fiscal. Of the order-book, about Rs 6,000 crore comes from transport, Rs 5,500 crore from power & energy and the remainder from others. Less than 15% of the backlog is from Gammon Infrastructure Projects, the group’s infra development arm.

“We are looking at fresh orders worth Rs 10,000-12,000 crore and closing the year with an order backlog of about Rs 20,000 crore,” said Modi in a conference call on Tuesday.

He said one-third each would be from roads & highways and energy & transmission, while the rest would be from ports, pipelines, etc.

Modi said there was still a lull in irrigation projects, but added, “There has been a revival in Andhra Pradesh, and the government has cleared a lot of payments.”

Gammon is looking to bag almost all of its targeted orders in India. “Whatever comes from abroad is a bonus,” said Modi.
Gammon closed FY 10 with a 23% jump in its topline to Rs 4,472 crore and a 3% increase in its net profit to Rs 145 crore.