G R Infraprojects envisages order book of Rs 250 bn by FY23

G R Infraprojects is expecting an orderbook of Rs 250 billion by FY23 due to a pick-up in government expenditure in infrastructure segment and rise road construction activities, according to Swadesh Anand Rathi, CFO. Rathi told ET Now that new work orders are expected to increase from Rs 90 billion to Rs 150 billion for FY23.

NHAI orders constitute 88% of the company’s order book, while almost 70% of the total order book is from HAM (Hybrid Annuity Model) projects. In the first quarter of the financial year 2023 the company executed the Rs 13.68 billion HAM project on the Delhi-Vadodra Expressway and the Rs 15.77 billion project in Andhra Pradesh.Rathi stated that GR Infraprojects is a pan India player but has less exposure in the Southern markets.

The company's margins have been impacted over the last 3-4 years, with margins falling from 21.8% to 17.6% due to the higher cost of raw materials. However, Rathi said margins have been impacted as order book has moved from HAM project to EPC, which has less margins as compared to the former. Input prices are expected to cool off from Q3FY23 onwards.

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