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

Anand Vihar and Punjabi Bagh Flyovers Ready

Work on two major road infrastructure projects, the Anand Vihar flyover and the Punjabi Bagh flyover, has been completed but are yet to be opened for public use, according to officials. Located in highly congested areas, work on these projects started around two years ago. "The work on the flyover is complete and it is ready for opening," said a PWD official on Wednesday. According to sources, both the flyovers are likely to be inaugurated closer to the assembly elections in Delhi, scheduled for early next year. During the time the work was under way, motorists faced heavy traffic congestion ..

Next Story
Infrastructure Transport

RDSO finalise oscillation trials on Indore Metro

Indore Metro Phase 1 advances with the completion of oscillation and brake performance trials on the Yellow Line through three coaches manufactured by Alstom conducted by Research Design and Standards Organisation (RDSO). The oscillation trials were conducted with an aim to evaluate the stability and performance of the three different coaches during the movement, ensuring that the commencement of operation on Indore metro meets the safety and performance standard. The Emergency Braking Distance (EBD) was also reviewed by the RDSO team to evaluate the efficient stopping of trains during the op..

Next Story
Infrastructure Urban

IIT Guwahati develops sustainable geopolymer

A research team at the Indian Institute of Technology Guwahati, led by Prof. Anil K. Mishra from the Department of Civil Engineering, has developed an innovative solution to two major global challenges: industrial waste management and sustainable construction. Their research focuses on creating a geopolymer using industrial byproducts and waste materials, such as water treatment sludge (WTS), fly ash (FA), and ground granulated blast furnace slag (GGBS). “With the rapid pace of urbanisation and industrialisation, managing industrial waste has become a critical global issue," said IIT Guwaha..

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