Railway electrification works accounted for a higher share of Salasar Techno Engineering Ltd’s revenue in Q1 of FY22, as compared with the same quarter of FY21.
In an investor presentation filed on stock exchanges, Salasar Techno Engineering Ltd said that EPC works in railway electrification accounted for 15 per cent of the company’s revenue in Q1 (April to June) of FY22 as against 5 per cent in Q1 of FY21.
On the other hand, share in revenue of EPC works in power transmission was down to 18 per cent in Q1 of FY22, from 21 per cent.
The remaining revenue came from Salasar’s traditional activity of manufacturing steel structures. The company has three steel manufacturing and galvanizing units – all located in Uttar Pradesh.
The company reported net sales of Rs.132.80 crore in Q1 of FY22, more than twice the Rs.63.20 crore recorded in the pandemic-affected Q1 of FY21.
Salasar Techno is bullish about opportunities in the railway electrification space following the enlarged budgetary allocations. In FY22, the budgetary allocation of Rs.7,542 crore for railway electrification is the highest ever so far.
Salasar’s scope of activities in the railway electrification space includes design, supply, erection, testing and commissioning of railway electrification works – including overhead electrification (both normal height and high-rise) and traction substation works.
India has targeted to achieve railway electrification of 29,201 route km (rkm) during the five-year period from FY20 to FY24 (April 1, 2019 to March 31, 2024). This is much higher than the actual achievement of 13,687 rkm in the five-year period ending March 31, 2019.
Order book
As of June 30, 2021, the company had an outstanding EPC order book of Rs.561 crore. Besides, it was L1 in EPC orders valued at Rs.87 crore.
During Q1 of FY22, Salasar Techno won a major order valued at Rs.238.65 crore from Power Grid Corporation of India Ltd. The order entailed construction of 201 km of transmission lines along with four substations in Arunachal Pradesh. Smaller orders were also placed by state utility Rajasthan Rajya Vidyut Prasaran Nigam Ltd, in the quarter.
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