BL Kashyap and Sons Ltd.: The Company’s Order Book Position and Way Forward

Q1. How did the construction sector fare in 2023, and what is the outlook for 2024?

In 2023, both BL Kashyap and the general construction industry experienced a reasonable year, achieving a consistent 12-15% growth across all industry segments. Looking ahead to 2024, the company is optimistic based on a significant increase in inquiries over the last six to eight months, doubling and tripling in volume. This surge in inquiries suggests an unprecedented boom in the construction sector, with anticipated growth ranging between 12% and 15% for the next three to five years. The growth is attributed to various factors, including developments in real estate, residential projects, government investments in infrastructure, and improvements in manufacturing.

Q2. What is the current order book position, and what are the expectations for the near future?

As of now, BL Kashyap holds unexecuted orders totaling about INR 3005 crores across various segments. Negotiations for additional orders are ongoing, with the potential to add another 1500 crores to the order book by March 31st. These negotiations involve both repeat and new clients, indicating a positive trajectory for the company's order book in the coming months.

Q3. Can you provide details on key projects like Sabarmati multimodal transport and Gomatinagar railway station?

BL Kashyap has successfully completed the Sabarmati multimodal transport hub in Ahmedabad, a design and build project for the National High-Speed Railways Company Limited (NHSRCL). The project exceeded expectations in terms of quality and finish. Additionally, the Gomti Nagar railway station, another design and build EPC contract, is expected to be 90% complete by December 31st, with full operational readiness anticipated by March 2024. The company is also engaged in the development of Bijwasan railway station.

Q4. How is BL Kashyap expanding its presence in the railway sector and contributing to India's growth?

BL Kashyap continues to bid for railway projects, leveraging its completed, ongoing, and upcoming projects as a competitive advantage. The company aims to grow its presence in the railway sector, capitalizing on its experience in metro, railway, and healthcare infrastructure projects.

Q5. What are the company's plans for capital expenditure (capex) in FY 24?

The company has allocated 25 crores for capex in FY 24, focusing on modernizing construction equipment, including formwork, cranes, and safety elements. Approximately 10-12 crores have already been spent on these initiatives, with the goal of enhancing construction speed and quality across various project sites.

Q6. How does the company plan to balance government and private sector orders in 2024?

Currently, 23% of BL Kashyap's total order book comes from the government, while 77% is from the private sector. In 2024, the company aims to increase its share of government projects to 30-35%, expecting the government to release new tenders for projects after April. The balance will be maintained with orders from various private sector companies.

Q7. What are the growth drivers and key sectors/states that BL Kashyap will focus on?

BL Kashyap identifies consistent quality, safety, and collaboration with existing clients as growth drivers. Modernizing equipment, commitment to quality, and agile management are also crucial for the company's growth. BL Kashyap sees opportunities in various sectors such as infrastructure, hospitality, healthcare, real estate, and manufacturing. The company's extensive presence across states and cities like Karnataka, Haryana, UP, Punjab, Gujarat, Pune, Chennai, Hyderabad, Kerala, Trivandrum, Patna, Raipur, and Delhi positions it for growth in these regions, with a particular focus on major contributors like UP, Karnataka, Tamil Nadu, Andhra Pradesh, and the NCR.

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same.