Tata Projects eyes Rs 12,000 cr top line, Rs 55,000 cr orders by fiscal end

Topics Tata projects

Illustration: Binay Sinha
Tata Projects is aiming to close the current financial year with a Rs 12,000 crore top line and will be eyeing growth over these numbers in fiscal 2021-2022. 

Himanshu Chaturvedi, chief strategy officer at Tata Projects Limited told Business Standard that the company expected to close the fiscal with an order book of Rs 55,000 crore to Rs 60,000 crore spread largely across urban infrastructure projects.

“This year we are expecting our order backlog should end around Rs 55,000 to 60,000 crore. We should be able to see a good growth over the numbers this year. If we look at our backlog, urban infrastructure such as bridges, metro project jobs, accounts for broadly 40 per cent of our portfolio. Around one-third is process projects such as those in the oil and gas sector. The balance would be linear projects such as transmission and distribution, roads and railways,” Chaturvedi said.

Commenting on how 2020-2021 was for the company, he said, “This year has been good for us. We expect to end it with a growth over last year despite the first quarter being a washout to a large extent. We were anxious when COVID-19 had hit, along with the other players, but there should be credit to the government for the steps they took. These include changes in procurement guarantees and contract payments terms that helped a lot.”

“Profit would depend upon the fourth quarter performance. In terms of revenue, we would probably be closing at around Rs 12,000 crores,” he added.

Tata Projects had bagged the Rs 891.90 crore Parliament building redevelopment project in the thick of the COVID-19 pandemic lockdown. Responding to a query on the project, Chaturvedi said, “It’s an extremely prestigious project and we are proud to be a part of it. The timelines are quite challenging but we are sure we will deliver it.”

Responding to a query on whether Tata Projects would be interested in the monetisation of government projects, Chaturvedi said, “We are doing operations and maintenance (O&M) jobs today for several steel and water projects in the country. We will need to understand what the Finance Ministry means when they say monetisation of O&M of dedicated freight corridor (DFC) assets. Depending on the contours, we would definitely want to have a look at it. We have a role in building the DFC so clearly we will want to have a role in operating and managing it as well.” In her Budget speech, Union finance minister Nirmala Sitharaman had focused on asset monetisation. She had announced the monetisation of Dedicated Freight Corridors (DFC) assets for operations and maintenance. 

Commenting on how the Budget 2021 would affect the company portfolio, Chaturvedi said, “We have a fairly diverse portfolio. We are into oil and gas, roads, railways and are doing around 40 per cent of the Dedicated Freight Corridor jobs that are going on currently. Our portfolio also covers water and buildings. This allows us to get benefits from any allocations. We have a strong focus on the railways and roads, the two sectors which saw the highest allocation.”

According to Chaturvedi, the railways and roads would high focus areas for the company and would be looking to get good projects from these sectors. From a medium-term view, overall, the quality of life has to improve in India and that has been the focus for successive governments, especially this government. So, a lot of investment will take place on metros, water, and improving life in cities. So urban infrastructure is a focus for us and we see good investment coming there in the future,” he added.

Domestic steel players have been irked after the Union Budget 2021 with the lowering of import barriers on steel products. Sharing his outlook on steel prices, Chaturvedi said, “The duty cut will impact only the imports coming from non-Free Trade Agreement routes. That is around 40 to 60 per cent of total steel imports. It will have some impact on prices but not a very significant impact. Our internal assessment is that prices will see some softening a few months down the line.”

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