Egis India expects to grow by 25%
N. V. Krishna, Managing Director, Egis India, describes the Indian construction and infrastructure sector and the Egis’s performance
The year 2012 has been rather subdued for Indian construction and infrastructure sector because of bearish economic view, increasing debts for key stakeholders and not so favourable fiscal policies by the government. Egis’s performance during 2012Despite the market conditions, Egis India would finish the year with a top-line growth of 30 per cent over 2011. Its order intake would also show a similar increase of 30 per cent, compared to 2011. Egis will also finish the year with a backlog of 16 months. The profitability, however, was on tremendous pressure because its EBITDA was expected to increase by 17 per cent.
Egis’s diversificationEgis has achieved across sectors and segments. It has progressed substantially on rail sector, which now is contributing about 37 per cent of the turnover, while roads contributing 43 per cent and the rest 20 per cent among architecture and building engineering, GIS, structures, urban planning and water. Also, Egis is having 30 per cent of turnover from the private sector.
Egis in IndiaIndia is one of Egis’s target countries and the company is committed to develop the Indian counterpart. Since inception, its Indian subsidiary has moved from 100 per cent dependant to self-sustaining company with only 10 per cent of subcontracting from the parent group.
Challenges compared with other countriesChallenges in profitability and cash flow in Indian market are big issues, when compared to other countries. Egis, however, hope that the engineering consultancy practice in India will mature in coming years.
Egis in project financingEgis Group, through its subsidiaries Egis Projects and Egis Road Operations, is working on selected project financing with the main focus on road operation. In India, Egis is involved in road operations in three assets, including Delhi-Gurgaon Expressway through its subsidiary — Egis Inframanagement India Limited.
Target turnover for 2013Egis India expects to increase turnover by 25 per cent in the coming years. The growth would come from water, structures, and architecture and building engineering. Egis also expects to consolidate its leadership in rail sector, while maintaining its market share in road sector.