BUILDING COMPETITIVE ADVANTAGE
GPL’s order book stands ~ INR 7486 Cr (March 2014). currently which is ~ 4 x FY14 revenues. This is likely to give a boost to revenue growth going ahead.
Irrigation projects dominate the order book with a 46% share; roads provide one-third of the order book.
These segments are at the forefront of Govt’s infra push as they have come to be identified strongly with social development.
Revival of NHDP project award and continuation of ‘Jalayagnam’ are likely to ensure steady stream of orders in the roads and irrigation segments respectively.
With the revival of economy, industrial projects are also expected to pick up thereby translating into increased order traction for the company. To summarize, order inflow is not a concern in the medium term for GPL.