We consciously decided to be selective in our project evaluation
ROADS & HIGHWAYS

We consciously decided to be selective in our project evaluation

Bharat Road Network Ltd (BRNL) is a road BOT company in India focused on development, implementation, operation and maintenance of roads/highways projects. Incorporated in 2006 as a developer and operator for highways, road and related projects on a BOT basis, the company has a project portfolio worth Rs 68 billion consisting of six BOT projects, of which five are operational and one is under construction and expected to be operational this year. It currently manages over 2,000 km of national and state highways spread across Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha. BRNL is a professionally managed company guided by an independent board with eminent personalities with rich domain knowledge and experience. Bajrang Kumar Choudhary, Managing Director, shares more….

Name one major challenge faced in FY2018-19. How did the company tackle it?
One of the biggest challenges faced by infrastructure players today is an inordinate delay in settlement of arbitration awards and long-drawn litigations. We are no exception and have been hitting this hurdle quite often. We have about Rs 500 crore of arbitration award money in our projects currently stuck in myriad procedural delays and policy barriers. Last year, we made a concerted effort towards claim realisation and created a cross-functional team to pursue such matters vigorously. Now, we are happy to see positive results as we have been successful in winning one arbitration matter related to our Odisha project, in possibly record time. 

Nameone decision you consider the biggest contributor to the company’s growth in FY2018-19.
Considering that the environment was not too conducive for portfolio expansion, we decided to emphasise on enhancing operational excellence and creating value in existing assets through a focused strategy. This included exemption control and an integrated approach towards fully automated tolling operation and maintenance. 

What isone single factor you avoided that could have otherwise impacted the company’s topline and bottomline?
We remained cautiously optimistic towards portfolio expansion owing to the current liquidity stress in the market triggered by the lenders’ inability to enhance their exposure in the sector. We consciously decided to be selective in our project evaluation and remained focused on operational excellence and claim realisation.

What are your plans for the company’s growth in FY2019-20? 
We hope to see some buoyancy in the market in the long run and expect rational bidding that assures healthy returns. While we remain committed to realising value for existing portfolios, we will remain selective in portfolio expansion through primary and secondary market opportunities until we find the liquidity condition has improved significantly and the expected return on projects wouldmatch our defined parameters. However, we would like to assure investors that our continuous focus on value accretion through portfolio churning is expected to yield healthy returns. 

Bharat Road Network Net Sales EBITDA Reported PAT
FY19 (Rs Billion) 4.01 2.23 -0.44
Growth over FY18 (%) 162.02 57.70 -288.09

Bharat Road Network Ltd (BRNL) is a road BOT company in India focused on development, implementation, operation and maintenance of roads/highways projects. Incorporated in 2006 as a developer and operator for highways, road and related projects on a BOT basis, the company has a project portfolio worth Rs 68 billion consisting of six BOT projects, of which five are operational and one is under construction and expected to be operational this year. It currently manages over 2,000 km of national and state highways spread across Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha. BRNL is a professionally managed company guided by an independent board with eminent personalities with rich domain knowledge and experience. Bajrang Kumar Choudhary, Managing Director, shares more….Name one major challenge faced in FY2018-19. How did the company tackle it?One of the biggest challenges faced by infrastructure players today is an inordinate delay in settlement of arbitration awards and long-drawn litigations. We are no exception and have been hitting this hurdle quite often. We have about Rs 500 crore of arbitration award money in our projects currently stuck in myriad procedural delays and policy barriers. Last year, we made a concerted effort towards claim realisation and created a cross-functional team to pursue such matters vigorously. Now, we are happy to see positive results as we have been successful in winning one arbitration matter related to our Odisha project, in possibly record time. Nameone decision you consider the biggest contributor to the company’s growth in FY2018-19.Considering that the environment was not too conducive for portfolio expansion, we decided to emphasise on enhancing operational excellence and creating value in existing assets through a focused strategy. This included exemption control and an integrated approach towards fully automated tolling operation and maintenance. What isone single factor you avoided that could have otherwise impacted the company’s topline and bottomline?We remained cautiously optimistic towards portfolio expansion owing to the current liquidity stress in the market triggered by the lenders’ inability to enhance their exposure in the sector. We consciously decided to be selective in our project evaluation and remained focused on operational excellence and claim realisation.What are your plans for the company’s growth in FY2019-20? We hope to see some buoyancy in the market in the long run and expect rational bidding that assures healthy returns. While we remain committed to realising value for existing portfolios, we will remain selective in portfolio expansion through primary and secondary market opportunities until we find the liquidity condition has improved significantly and the expected return on projects wouldmatch our defined parameters. However, we would like to assure investors that our continuous focus on value accretion through portfolio churning is expected to yield healthy returns.  .tg {border-collapse:collapse;border-spacing:0;} .tg td{font-family:Arial, sans-serif;font-size:14px;padding:10px 5px;border-style:solid;border-width:1px;overflow:hidden;word-break:normal;border-color:black;} .tg th{font-family:Arial, sans-serif;font-size:14px;font-weight:normal;padding:10px 5px;border-style:solid;border-width:1px;overflow:hidden;word-break:normal;border-color:black;} .tg .tg-eohl{font-weight:bold;background-color:#ffcb2f;color:#343434;border-color:inherit;text-align:right;vertical-align:top} .tg .tg-v56s{font-weight:bold;background-color:#ffcb2f;color:#343434;border-color:inherit;text-align:left;vertical-align:top} .tg .tg-5agr{color:#343434;border-color:inherit;text-align:left;vertical-align:top} .tg .tg-39dc{color:#343434;border-color:inherit;text-align:right;vertical-align:top} Bharat Road Network Net Sales EBITDA Reported PAT FY19 (Rs Billion) 4.01 2.23 -0.44 Growth over FY18 (%) 162.02 57.70 -288.09

Next Story
Infrastructure Transport

HMRTC to Extend Metro from Gurugram to Jhajjar

The Haryana Mass Rapid Transport Corporation (HMRTC) is progressing with plans to extend the Gurugram Metro from Basai to Bhadsa in Jhajjar, with the ridership survey expected to be completed by the end of January, according to HMRTC officials. In March, the authority had requested Railway India Technical and Engineering Services (RITES) to conduct a ridership survey, which will play a crucial role in finalising the project. The proposed route, covering 23.1 km from Basai to Bhadsa, will alleviate heavy traffic on this stretch. The ridership survey will determine whether the extension should p..

Next Story
Building Material

Siam Cement BigBloc Construction bags Tata Project’s order

SIAM Cement BigBloc Construction Technologies, a joint venture between Gujarat based BigBloc Construction and Thailand’s SCG International Corporation, has secured a work order from Tata Projects for supply and installation of AAC Panels for India’s first Semiconductor unit of Micron India in Sanand, Gujarat. The work order of approx. 2 lakh square feet is for supply and installation of 100 mm AAC panels for Micron India’s semiconductor factory at Sanand. The work order was finalized after several rounds of meetings, thorough due diligence, and factory visits, including review of mock-u..

Next Story
Infrastructure Urban

Zoomlion Releases World's Tallest Straight Boom Aerial Work Platform

Zoomlion Heavy Industry Science & Technology has released a series of groundbreaking aerial work platform (AWP) products, including the world's tallest straight boom aerial work platform, the ZT82J, with a height of 82.3 m. These innovative products further solidify Zoomlion's leadership in the AWP sector and underscore its commitment to global market development. The ZT82J marks Zoomlion's third instance of setting a world record in straight boom AWP following the 68-meter and 72-meter products. The 82.3-meter AWP boasts a platform amplitude of 34.1 meters, a maximum working load of 454 kilog..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000