You are here: Home » PTI Stories » National » News
Business Standard

Shapoorji Pallonji eyes Rs 45,000 cr revenues in FY19

Business Finance

Press Trust of India  |  Mumbai 

With a healthy order book of over Rs 1 trillion, diversified Shapoorji Pallonji Group is eyeing Rs 45,000 crore of revenues this fiscal, a senior company official said.

The Group, which has grown at a CAGR of 22 per cent over the past five years, is also planning to enter new geographies and expects to grow at 20-22 per cent over the next two years.

"India's growth story is on track and a lot is happening on the infrastructure, renewable energy and housing fronts. We have also grown significantly over the past few years and our order book has reached a historic high of Rs 1.1 trillion," its group executive director Jai Mavani told PTI here.

He said the company had reported a turnover of Rs 40,000 crore in FY 2017-18 and and expects it to reach Rs 45,000 crore in FY 2018-19.

"Nearly 30-35 per cent of the order book is contributed from the international market. We are already present in Middle East, South East Asia, South America, Africa and want to enter new geographies including the US and Canada. Going forward, we may see the contribution increasing to 40 per cent, but our focus will always continue to be the home market," Mavani said.

Business wise, Mavani said the Group's construction division, which clocked revenues of Rs 8,000 crore is expected to to grow to Rs 12,000 crore in FY 2018-19.

He further said the solar division Sterling & Wilson Solar EPC is expecting revenues of around of Rs 10,000 crore in the current fiscal.

"The valuation of this business is between USD 3.5-4 billion as carried out by three investment bankers and we are in advanced stages of discussions with global investors for a strategic stake in Sterling & Wilson Solar EPC and a potential IPO," Mavani said.

The strategic stake sale is expected to bring in an additional amount of Rs 2,000 crore into the Group over the next few months, he added.

Commenting on the real estate business of the Group, Venkatesh Gopalkrishnan CEO of SP Real Estate, said the company has a development pipeline of over 80 million sq ft including an asset light model of development management projects of over 24 million sq ft, which have a fee potential of over Rs 4,000 crore over the next 5 years.

"We have successfully sold our IT Park in Pune and will consummate the sale of another in Chennai within the next one week. These two monetisations will yield an amount of Rs 1,300 crore for the Group with another Rs 600 crore of monetisations already contracted to be closed in the next 5 months," he said.

Gopalkrishnan further said the asset monetisation and strategic stake sale programme, as well fund infusions from the promoters of SP Group, will result in over Rs 3,000 crore being infused into the parent company of the Group over the next few months.

"This will help manage the growth. With a historically high group order book in excess of Rs 110,000 crore, with a global coverage, the SP Group is poised to continue with its profitable growth trajectory," he added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, November 14 2018. 18:41 IST