We will certainly catch up to the committed profitability: BGR Energy Systems

BG Raghupathy, CMD, BGR Energy Systems in an interview with ET Now discusses the key growth drivers for the company.

Congratulations. It has been a stellar quarter for you. Your sales have clocked in a growth of about 143%, the profits have jumped 154%. What were the key growth drivers for you?

Key growth drivers are the Rajasthan Kalisindh project execution and also the Mettur 600 megawatt execution. These are the main drivers for the last quarter and the supplies are going on schedule and if you look at the half yearly numbers, our turnover is 2039 crores which shows over the last year are fairly at 162% growth, an EBITDA of 235 crores which results 130% growth in EBITDA over last half year and the PAT growth is 172% over the last year’s half year’s numbers.

Just looking at your margins. In spite of good growth in the top and the bottom line, the margins have declined by about almost 110 BIPS this time around. Could you elaborate what went wrong and what really is putting pressure on the margins?

This is mainly due to the steel price increase, cement price increase. This has contributed to the slight reduction in the margins and by the financial year end, we will certainly catch up to the committed profitability.