Ramky nears fin closure for Rs2,000 cr projects

Ramky Infrastructure Ltd is expecting the financial closure for two of its key road projects in the next fortnight.

The firm has been working on two road projects – Agra-Etawah bypass section of National Highway – 2 in Uttar Pradesh and four-laning of Hospet-Chitradurga section of NH-3 in Karnataka.

While the Agra-Etawah project is estimated to cost Rs1,207 crore, the Hospet-Chitradurga project would cost Rs1,033.65 crore.

“We are likely to announce the financial closure for both the projects in the next 15 days,” Gowtham Reddy, Ramky Group’s executive director, told analysts on an earnings call.

For the quarter ended June, Ramky Infra recorded Rs881.9 crore in consolidated revenue and a net profit of Rs51 crore.

During the quarter, its order inflow was at about Rs640 crore and analysts have expressed their concern over the slowdown in the order inflow and the possibility of reaching Rs5,000 crore order book for the current fiscal.

However, Reddy said that the company was confident of reaching the targeted order book position.

“We are confident of reaching Rs5,000-5,500 crore order book. While roads and buildings would contribute about 45% to the order book, water and waste water management would bring in about 20% of orders and buildings segment 15-18%,” he said.