Supreme Infrastructure to go slow on bidding, focus on acquisitions

August 21, 2012

3i India Infrastructure Fund-backed Supreme Infrastructure is planning to go slow on bidding for new road projects and is scouting for acquisition of ongoing road projects, Vikram Sharma, managing director, Supreme Infra, told ET.

Supreme Infrastructure, a Mumbai-headquartered infrastructure developer and construction company, has a portfolio of nine road projects that the company is executing on build-operate-transfer (BOT) basis.

“We will go slow on BOT projects for the next 2-3 quarters. There are road assets available for sale and we are aggressively looking at acquisition opportunities,” Sharma said.

The company is looking for roads with projects cost ranging between Rs 300 to Rs 600 crore, he said.

On Tuesday, Supreme Infrastructure reported net profit of Rs 25.8 crore in the first quarter of 2012-13, almost flat from Rs 25.6 crore a year ago. Company’s total income rose 32% year-on-year to Rs 436 crore in the June quarter.

“Our profits have been hurt due to higher interest cost and rising prices,” Sharma said.

The company has an order book worth Rs 4,376 crore, which includes orders worth Rs 999 crore where the company has emerged lowest bidder.


3i completes Rs 200 cr deal in Supreme’s BOT road projects

July 10, 2012

Supreme Infrastructure today said it has completed the Rs 200-croe deal with 3i India Infrastructure Fund for a minority stake in its portfolio of road BOT companies.

“3i India Infrastructure Fund has completed its Rs 200 crore investment for a minority stake in a portfolio of our road BOT companies,” Supreme Infrastructure said in a statement. The transaction was signed and announced on January 30 and Ernst & Young was appointed as the financial advisor to the deal for this fund raise, it said.
Supreme Infra is focused on roads, bridges, power, water, railways and civil construction and infrastructure.

The company’s current order book stands at Rs 5,800 crore of which unexecuted order book is Rs 3,900 crore.


Supreme Infra – Commencement of Tolling operations for Patiala Nabha Malerkotla (PNM) Road Project

July 4, 2012

Supreme Infrastructure India Ltd has informed BSE that the Company”s subsidiary Supreme Infra Projects Private Limited (SIPPL) has completed the construction of the Patiala Nabha Malerkotla(PNM) Road project on a DBFOT basis. The Company has commenced tolling operations on June 24, 2012. The Project was awarded by Punjab Industrial Development Board (PIDB) and in August 2011 was taken over by SIPPL from the original concessionaire. The sixe or this project was Rs. 94 cr. The concession period is 13.5 years. The total length of the road is approximately 56 kms. The EPC work was executed by Supreme Infrastructure India Ltd.

With this, the Company has achieved operational status of its 2nd Road BOT Project in India and its 1st Road BOT project in Punjab outside Maharashtra.


3i invests in Supreme’s BOT Road Projects

February 9, 2012

3i India Infrastructure Fund has entered into an agreement for an investment of around US$61 million. The investment is for a minority stake in a portfolio of road BOT companies of Supreme Infrastructure India Limited (“SIIL”). SIIL is a construction and infrastructure company in India, focused on roads, bridges, power, water, railways and civil construction and infrastructure among other activities, with its primary focus firmly in the roads and highway sector along with other verticals of infrastructure. Since it was set up in 1983, SIlL has established a strong track record in this sector, having built over 400km of highways, and with an order book currently standing at Rs5,700 crores of which unexecuted order book is Rs3,750 crores .SIIL was founded by Bhawani Shankar Sharma and is currently managed by his sons Vikram Sharma (MD) and Vikas Sharma (Whole Time Director).
Anil Ahuja, Managing Director and Head of 3i Asia, commented on the transaction: “SIBHPL offers us the opportunity to expand our presence in the road sector in India through a portfolio of high quality road BOT projects.


Supreme wins new BOT road project

December 26, 2011

Supreme Infrastructure India has completed EPC for its first marine project, Kasheli Bridge and commenced tolling operations. The company added orders worth Rs212.30 crore along with a bridge project for Rs124 crore where it is declared L1.
Kasheli Bridge in Thane Vikas Sharma, whole-time director, Supreme Infrastructure, said “We are proud to report completion of our first Marine project Kasheli bridge at Thane. This project has added significant capabilities to our engineering team, which can now undertake complex and larger marine projects. Also, our efforts of expanding our reach in the northern territory is starting to show positive signs. We have also won orders from our existing customers and it is a mark of the good quality work we continue to deliver for our clients and a testimony to our work ethos.”
It has also added a road BOT project in Maharashtra. Further, the company is in advance dialogue with the strategic investors to explore possible investments in its BOT portfolio. The EPC work in the Marine Segment involves building a six lane flyover on old Thane-Nashik highway for a length of 1.2 Km on the Thane Creek for Rs301 core.
This project was awarded to Supreme in 2009 by the Sangam group and has been completed in 36 months. The project involved complex engineering skills to cast pilling with depths ranging from 15–25 meters. This project is an engineering marvel and a reflection of our in house capabilities.
Supreme holds 10 per cent equity stake in the Kasheli Bridge SPV through Kalyan Sangam Infratech. This SPV was involved in the construction of the Kasheli Bridge on a BOT basis. The construction of Kasheli Bridge is completed and tolling operations have commenced.
Construction of Villas and premium apartments have been awarded by BPTP Group, Gurgaon. This is a state-of-the-art project being developed in Gurgaon. Order size is Rs71 crore and is expected to be executed by March 2014.
The group also has project awarded by Ramprastha Group for construction and development of Multi storied tower ‘SKYZ’, at Gurgaon. The scope of work order involves construction of nine towers of 19 stories each. Order size is Rs141.30 crore, which is expected to be competed by March 2014.
The company has been declared L1 by MMRDA for the design and construction of flyovers at Rajnoli Junction and at Mankoli Junction on NH-3 at Thane Nashik road. Order size is Rs124 crore.


Supreme Infrastructure secures 2 new Road BOT projects

December 12, 2011

Supreme Infrastructure India Limited has added Two Road projects on BOT basis and a project in building vertical.

Jaipur Ring Road – This project is for the development of the outer ring road in Jaipur city. The project has been bagged by Supreme Infrastructure India Ltd. (SIIL) and its JV partner Constructora Spain S.A. (Sanjose ). The cost of the project is estimated at Rs. 1,045 crore and will be a 60:40 JV between Sanjose and Supreme Infrastructure India Ltd. (SIIL). The project is awarded by Jaipur Development Authority (JDA). The EPC work will be executed jointly by Supreme and Sanjose in equal proportion. This project will be housed in the SPV, Sanjose Supreme Tollways Development Private Limited.

Patiala Malerkotla Road – Supreme Infrastructure India Ltd. has taken over a partially completed project from the original concessioner. The project is in the State of Punjab and necessary approvals from Punjab Infrastructure Development Board has been taken by the Company in this respect. The project cost is estimated at Rs. 93 crore and is expected to get completed in 4 months. This project is housed in the SPV Supreme Infra Projects Private Limited. The entire equity of this SPV is held by Supreme Infrastructure BOT Private Limited, a 100% subsidiary of Supreme Infrastructure India Limited. The EPC work will be executed by Supreme Infrastructure India Ltd.

The company also received a work order for ESIC Hospital – Phase 2, Mumbai Work for the construction of 2nd Phase of ESIC Hospital, Mumbai has been awarded to the Company. The 2nd phase of the Hospital is in addition to the 1st Phase of the Hospital which is already under execution by the Company. Order size is Rs. 110 Crore and is expected to be executed by December – 2013.

The stock was trading at Rs.183, up by Rs.2.85 or 177%. The stock hit an intraday high of Rs.188.95 and low of Rs.177.

The total traded quantity was 10912 compared to 2 week average of 6825.


Supreme Infrastructure: Concrete structure

August 23, 2011

The company, which is present in railways, bridges, buildings, power, sewerage, irrigation and roads, is looking to expand its capabilities in marine projects and deepen vertical strength in various states
Supreme Infrastructure India (SIIL) is one of the few listed infrastructure companies that is doing extremely well. SIIL is present in seven verticals—railways, bridges, buildings, power, sewerage, irrigation and roads—across Maharashtra, Haryana, Punjab, Rajasthan, Uttar Pradesh and West Bengal. Each vertical functions as a business unit, thus increasing focus on execution as well as order book growth. SIIL started with executing orders of Mumbai’s municipal corporation and the public works department of Maharashtra and, when the infrastructure boom started in India in the mid-1990s, it expanded its activities by procuring contracts of urban development and municipal authorities in various cities.

SIIL’s construction business has an integrated business model with in-house asphalt, ready-mix concrete, crusher and wet-mix plants, ensuring timely supply of construction material and saving of tariffs & taxes due to captive material transfers. This also ensures lower costs.

For the financial year ended 31 March 2011, SIIL’s total income jumped 72% to Rs918.70 crore from Rs534.10 crore, while net profit surged by 91% to Rs74.80 crore from Rs39.20 crore in FY09-10. Its net profit for the March 2011 quarter zoomed 148% to Rs27.40 crore from Rs11 crore in the corresponding period last year on an 88% rise in total income to Rs328 crore from Rs174.30 crore.

At present, SIIL has five BOT (build, operate, transfer) projects in Maharashtra. These include Kasheli Bridge which is expected to be complete by Q2FY11-12, while the Panvel-Indapur and Manor-Wada-Bhiwandi projects are expected to be completed by July 2013 and the Ahmednagar-Karnala-Tembhurni project is expected to finish by March 2014. The Haji Malang project is a ropeway project having a construction period of two years. The Manor-Wada-Bhiwandi project—an industrial belt connecting Gujarat and Maharashtra—is the company’s first BOT road project.

The company has also won contracts in the irrigation, railways, building and power sectors. Its Osmanabad (Andhra Pradesh) irrigation project is scheduled to be completed by June 2012. SIIL, in a joint venture with Patwari Electricals, is executing turnkey power projects for Maharashtra State Electricity Distribution Co Ltd. In the railways segment, SIIL has won many orders from Mumbai Railway Vikas Corporation. Also, in the building segment, the company has won several orders from government agencies as well as private companies. Some of the major projects include construction of Edge Towers worth Rs255 crore at Ramprastha City, Gurgaon, construction of Hexcity worth Rs138 crore for Armstrong group at Navi Mumbai.

The company is looking to expand its capabilities in the marine projects segment and deepening vertical strength in each state. In Kolkata, it has joined hands with Bengal Tools to undertake orders in the industrial infrastructure space.

However, currently, most of the company’s orders are from Maharashtra (around 76%). Any slowdown in the order book from this state may affect the cash flows of the company. SIIL has a track record of timely completion of projects. But, being a new player in the BOT segment, there could be a potential execution risk. Land acquisition is also another problem—any delay in project execution would affect the revenues of the company, going forward.

Over the past five quarters, SIIL has reported an average growth in revenues and operating profit of 59% and 56%, respectively. Its average operating margin is 17% and return on net worth is 29%. Its market-cap to revenues is 0.33, while its market-cap to operating profit is 2.16 times. The stock is an attractive buy at the current market price.


Supreme Infra Q1 Net up 64 pc to Rs 25.57 crore

August 23, 2011

MUMBAI: Supreme Infrastructure today posted a 64 per cent increase in its net profit for the quarter ended June 30 to Rs 25.57 crore as against Rs 15.59 crore in the year-ago period.

The total sales of the company jumped 78.82 per cent to Rs 330.02 crore during the quarter as against Rs 184.53 crore in the corresponding period last year.

“We have started the year with good execution levels across projects. We have added projects in our BOT portfolio and are confident of ramping up operations to achieve greater results for our stake holders,” the company’s director Vikas Sharma said in a statement issued here