IECL Continues Its March Forward In Key Domain Sectors

August 10, 2011

Focus on execution has been the hallmark of the quarter ended June 2011. Q1 FY12 Revenue is higher by 40% vis-à-vis Q1FY 2011. Loss for the quarter reduced to Rs 14 crores as compared to a loss of Rs 43 crores incurred in the same quarter of the previous year. A lot of initiatives are being put in place to increase the revenue run rate going forward for the order book in hand. Business Development is also gaining traction with IECL having landed new domestic and international orders aggregating more than Rs 34 billion with significant additional orders in the pipeline

On the domestic front, IECL had bid for almost Rs 46 billon of contracts in the last 6 months. Of the foregoing, IECL has been awarded with contracts aggregating to Rs 16 billion relating to road and building projects. On the international front, IECL has been exploring opportunities in the Middle East and has bagged two orders aggregating to more than Rs 9 billion. IECL has mobilised resources to meet the execution requirements and hopes to bag higher value added contracts in the near term. In this quarter IECL has been successful in getting its first order in the Oil & Gas space since the takeover of operations by the IL&FS Group. The value of works is USD 100 million and the location of work is UAE, which opens up a new territory for the Company

IECL is in active discussions to explore partnership opportunities with global companies with the right technical credentials. IECL has accordingly tied up with ANC of Dubai to create capability for high rise and high end building construction. For the Oil & Gas space, IECL has taken membership of the international pipeline laying construction association. Similar discussions are underway with international majors to help deliver turnkey solutions for clients

The Core Management Team has been further strengthened with the induction of new sector heads who will help fortify the execution and business development capabilities in the sectors of Power, Buildings & Railways. Further, the Company is leveraging the strengths of its two promoters IL&FS and SBG and building a strong order pipeline