GECPL won project worth Rs. 69 crore

Generic Engineering Construction & Project (GECPL) has recently bagged a project worth Rs. 69 crore, according to company’s filing in BSE. With this new order, the company is all set to achieve a stronger order book at the end of the ongoing quarter. Currently, its order book stands at Rs. 418.00 crore, which is almost 10 times its FY17 revenue. This gives a good earning visibility for the company. Company’s debt to equity ratio at the end of FY17 stood at less than 0.5x.

Managing Director of the company, Manish Ravilal Patel, in a media communique said, "The current order book comprises of various business segments with a larger focus on residential construction projects which we have already procured. We are also executing a major project worth Rs. 87 crore for Hospitals under CSR activity of leading Indian corporate in addition to another residential project worth Rs. 64.2 crore.”

GECPL is also seeing good opportunities for generating fresh businesses from mass housing as norms for FDI in 15 sectors including real estate and construction development have now been eased. Even the Pradhan Mantri Awaas Yojana (PMAY) and affordable housing could revive the fortunes of real estate sector business which is now coming out from its down-market label and turning to a serious and respectable sector.

If the current run rate of company’s business acquisition and execution continues, we may see robust earnings from the company in FY18, both in revenue as well as profit. To improve its execution capability, the company is planning to add new plant and construction machinery. GECPL management has already taken the decision to move into other geographies. The company has started an industrial project in Gujarat and the negotiations are on for projects in north Indian states.