Super League EPC Companies

Like any other industry, the EPC industry is also dominated by some of the top players. ACE Update showcases how these companies are contributing to India’s growth story
India’s infrastructural development is escalating to greater heights thanks to a number of companies who stood up the test of time and are creating a legacy for others to follow. India’s infrastructure companies have shown their expertise in dealing with the challenges and making the most of the available opportunities and achieving success.                                                           In this special report, we bring top EPC companies based on various criteria including research & analysis, recent financial results, order book standings, key ongoing projects and so on.
Punj LloydPunj Lloyd is one of the leading EPC contractors globally. Punj Lloyd Group has its operations spread across Asia Pacific, South Asia, Middle East, Africa and Europe. The group is currently engaged in mega projects which will contribute towards building robust infrastructure globally.
The current order backlog stands at Rs. 22,063 crores. The order backlog is the value of unexecuted orders on March 31, 2014 plus new orders received after that date. The company has recently won prestigious projects in Yemen, Libya, Brunei, and Kuwait, reflecting its strategy of pursuing global markets.The Group has recently bagged a few big infra projects in the middle-east, to name a few:Rs.  1, 418 crore project with KNPC for the expansion and revamping of Ahmadi Depot in KuwaitRs.  1,270 crore expressway project in Yemen  for the construction of 42 km, 2×3 lane dual carriageway project between Doraigh and Noubat Dokaim from the Ministry of Public Works & Highways, Republic of YemenRs.  3,254-crore project to design and construct infrastructure facilities of Zliten city, Libya. The project involves design and construction of the storm and sewer network, water network, telecommunication and power distribution network, natural gas network, street lighting and road works including landscaping of parks and green areas.
“With the new policies proposed in the Union Budget 2014 and investment of $1 trillion envisaged for infrastructure in the 12th Five-Year Plan, the future looks promising for the EPC sector in the domestic market with several opportunities lying ahead,” says Atul Punj, Chairman, Punj Lloyd Group.
Larsen and ToubroLarsen & Toubro, a $ 14.3 billion conglomerate has over the past seven decades been transforming cityscapes and landscapes with structures of immense size and grandeur. L&T’s net profit surged 52.3 per cent to Rs. 2,723.48 crores on 11.1 per cent growth in net sales to Rs. 20,079.10 crores in Q4 March 2014 over Q4 March 2013. Total income has increased from Rs. 755,536.80 million for the year ended March 31, 2013 to Rs. 861,103.10 million for the year ended March 31, 2014.
The recent order wins (excluded in the order book) by the group are from different sectors, such as L&T Construction has won new orders worth Rs. 1,459 crores and Rs. 2,002 crores  across various business segments in June 2014.
L&T has won both, international as well as domestic orders. A major order is for the construction of the Kannur International Airport in Kerala, which involves an integrated terminal, an air traffic control complex including control tower, administrative offices and substation buildings.
L&T has also bagged orders from the Goa State Infrastructure Development Corporation Limited for the design and construction of a cable stayed bridge across River Mandovi at Panaji. L&T Hydrocarbon, the subsidiary of Larsen & Toubro dedicated to oil and gas, received a contract valued at Rs. 5,076 crores from the Kuwait Oil Company.
The company successfully secured fresh orders worth Rs. 94,108 crores during the year ended March 31, 2014, registering a significant year-on-year growth of 15 per cent, on a large base despite a sluggish economic environment during 2013-14.
Gammon IndiaGammon India is one of the largest civil engineering construction companies in India. For nearly a century Gammon has been undertaking and executing the toughest engineering and construction projects.
The turnover of the company on a standalone basis stood at Rs. 3,279.31 crores and on a consolidated basis it stood at Rs. 4,932.42 crores for the nine months period ended 31st December, 2013.
Their overseas operations in Italy were characterised by weak order bookings, tighter environmental controls especially for emissions, paucity of working capital due to a general aversion in the system to lend to corporates and an uncertain political climate. Other important markets like Egypt and some parts of the Middle East witnessed political turmoil which had adverse consequences on order bookings as well as execution of contracts. The development arm of the group consolidated its existing basket of projects while focusing on their commissioning in a time bound manner.
“Despite of all the challenges the order book however has been encouraging. The company has been awarded 20 new projects aggregating to Rs. 4,126 crores. The order book position of the company as on 31st December, 2013 stood at Rs. 14,285 crores,” says Ankur Goyal, Manager Business Development and Marketing, Gammon India Limited.
Several projects have been announced which are at various stage of bidding. For example, in hydro electric power sector, NHPC has announced projects in Arunachal Pradesh, Sikkim, Himachal Pradesh such as Kotlibhel, Debang, Twang, Teesta ect., Chenab Valley Power Projects (J&K) is under bidding process of Pakaldul HEP, Kiru and Kwar HEP while JKSPDCL (J&K state) in inviting bids for Kirthai.
In road sector, the Road Transport Ministry and the National Highways Authority of India (NHAI) have to achieve an award target of 9,500 km of road projects as set by the PMO. Other project like the Eastern and Western Dedicated Freight Corridor Package may have an opportunity of civil works of range upto Rs. 30,000 crores or more, in totality.
He further adds, “We see a new ray of hope with the onset of the new government and we expect a lot of these hurdles to diminish and get ironed out to create a path for development. We foresee a business and investor friendly atmosphere with a focus on infrastructure and growth.”
Hindustan Construction CompanyWhen HCC opened the Uri-II hydroelectric project in J&K recently, it was more than the opening of a hydroelectric project. It was a statement that infrastructure in India had attained a new level. HCC Group delivers world-class engineering and construction services. HCC is responsible for landmark projects that have defined the country’s progress. Since its inception, HCC Infrastructure has grown its portfolio to Rs. 5,500 crore ($1 bn) in 2013-14, which includes six NHAI concessions.
HCC has registered a net profit of Rs. 80.6 crores for the financial year ended 2013-14 compared to a loss of Rs. 137.6 crores last year. The turn over is up 7.2 per cent at Rs. 4,113 crores compared to Rs. 3,837 crores in the previous year. As on March 31, 2014, HCC’s order book stood at Rs. 14,249 crores.During the FY 2013-14, the company secured nine new orders worth Rs. 321 crores. After two years of losses, the company improved its performance quarter by quarter to post a net profit. HCC has been awarded an Rs. 300 crores contract by Delhi Metro Rail Corporation Ltd (DMRC).This is the third contract for underground metro received by HCC since October 2012 under the phase III development of Delhi Metro aggregating to Rs. 1,539 crores.
GMRGMR Group is one of the fastest growing infrastructure enterprises in the country with interests in airports, energy, highways and urban infrastructure sectors. GMR has continued its streak of improvements in its operational and financial results in the current quarter.
Gross Revenue for the quarter has increased by 12 per cent from Rs. 2,638 crores to Rs.2,961 crores. As Kamalanga and EMCO power plants have commissioned recently and are in its stabilisation phase, EBITDA of Rs. 712 crores continues to be same level of last quarter. Powered by the profit of Rs. 1,659 crores on divestment, the company’s 40 per cent stake in ISGIA airport, the profit after tax for the quarter has improved to Rs. 1,184 crores as against a loss of Rs. 414 crores for the previous quarter. Cash profit also significantly improved to Rs. 1,622 crores for the quarter against a cash loss of Rs. 41 crores for the previous quarter.
Gross revenue has grown for the year ended by 31st March, 2014 by 7 per cent to Rs. 10,653 crores and EBITDA has grown by 5 per cent to Rs. 2595 crores. The increase is not reflected in profits, as EMCO and Kamalanga plants are commissioned recently and the depreciation and interest charges have impacted the profit. Profit After Tax for the year is Rs. 108 crores against Rs. 135 crores for the previous year. The cash profit for the year has increased from Rs. 1,175 crores to Rs. 1,563 crores.
A consortium led by GMR Infrastructure Limited has won construction package of rail line doubling between Jhansi and Bhimsen stations in Uttar Pradesh.
The total contract is valued at approximately Rs. 267 crores of which GMR’s share of work is about Rs. 135 crores.
The work includes construction of roadbed, major and minor bridges, track linking, outdoor S&T works, OHE, TSS and general electrical works from Jhansi to Erich Road.
The company is looking at an order book of Rs. 1,000 crores by next year. GMR became one of the biggest infrastructure companies in the country by winning two airport projects in Delhi and Hyderabad. It has even developed airports in Istabul, Turkey.
Jaypee InfratechThe Jaypee Group is a well diversified infrastructural industrial conglomerate in India. Jaypee Projects has successfully defined its objectives and positioned itself as one of the leading organisation in the construction industry.
The company has posted a net profit of Rs. 2991.60 million for the year ended March 31, 2014 as compared to Rs. 6,944.60 million for the year ended March 31, 2013. Total income has increased from Rs. 32,922.00 million for the year ended March 31, 2013 to Rs. 33,321.30 million for the year ended March 31, 2014.
Tata ProjectsTata Projects is currently growing at an enviable pace to become one of the fastest-growing EPC companies in the country. The company has expertise in executing large and complex industrial infrastructure projects. The company has different business verticals, power, transmission, metals and minerals, railways, water, oil and gas, and quality services.
In terms of execution, the year has been remarkable. The company completed India’s largest blast furnace for the Rourkela Steel Plant of the Steel Authority of India and also commissioned the balance of plant of unit No1 of Andhra Pradesh Power Generation Company’s 2x800MW super critical thermal power plant at Krishnapatnam.
Thermax LimitedThermax offers EPC solutions in several areas such as power generation, industrial heating and waste heat recovery, water and wastewater treatment.  Thermax that began by offering co-generation expertise to industry in the mid 1990s and expanded its operations to design, build and commission turnkey captive power plants. Over the years the division has commissioned power plants for a wide range of industries. It has also commissioned a few independent Power Plants
During FY 2013-14, Thermax Limited, improved its order booking by 11per cent to Rs. 5,394 crores. The order backlog on a consolidated basis, as on March 31, 2014, was at Rs. 6,121 crores, a 25 per cent improvement from last year’s Rs. 4,878 crores.
For fiscal 2013-14, the company posted an operating revenue of Rs. 4,302 crores, lower by 8 per cent compared to Rs. 4,691 crores, the previous year. The company’s annual profit- after -tax dipped by 28 per cent at Rs. 253 crores from last year’s Rs. 350 crores.
“With the current focus on industrial renewal and investments in infrastructure, Thermax is hopeful of resuming its growth journey.  While grid power is expected to receive a surge from new generation, captive power projects would certainly witness an upswing as industries get down to their expansion plans. Positioned in both captive and independent power, Thermax is ready to offer its EPC expertise to the planned new projects,” says Vivek Taneja, Business Development Manager, Power Division Thermax Limited.
Technip IndiaTechnip India, a Rs. 900 crores company, has built itself a reputation as one-stop consultancy and EPC project organisation committed to deliver challenging and exciting projects for the energy industry.
“The last 2 years have not been so good for EPC industry in India, but we expect improvement next year in terms of the EPC prospects driven by growing domestic demand and a positive policy environment,” says Samik Mukherjee, Managing Director and Country Head, Technip India.
The recent projects being done by Technip India includes Reliance Industries, License and EP services for an refinery off gas ethylene cracker in Jamnagar, JBF-EPC project for a world scale PTA plant using alliance partner BP’s technology in Managalore, HPCL-LEPC project for the hydrogen plant and ONGC-EPC project for HRD process platform with Technip’s Float over technology at West Coast offshore.
With a positive order backlog, Technip India is confident to score a whooping 120 per cent growth in revenue approximately to Rs. 2,000 crores for the year ending 31st March, 2015.
 

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