IVRCL sees FY11 order book at Rs 32,000 crore

IVRCL Infrastructures & Projects expects the order book to rise to Rs 32,000 crore in FY11 on a rise in government orders, even as its FY10 net profit was hurt by a rise in income tax. India is boosting infrastructure spending, with the finance minister allocating 46 per cent of FY11 total budget allocation for infrastructure development in the country.

The construction firm is expecting orders from roads, power transmission, water, building of industrial structures and oil gas sectors. IVRCL Infrastructure has posted a net profit of Rs 211 crore for FY10, down from Rs 226 crore a year ago, while March-quarter profit rose 6.7 per cent to Rs 85.24 crore. The company's bottomline was hurt by the withdrawal of a tax rebate which pushed up its tax rate to 33 per cent in FY10 from 17-18 per cent in FY09.

Its order book stood at Rs 23,400 crore as on May 29, and the Hyderabad-based firm has bid for orders worth Rs 19,500 crore. IVRCL expects Rs 7,000 crore revenue in FY11 up from around Rs 5,500 crore this year.

The company, which has a net debt of Rs 1,450 crore as on March 31, is also hopeful of bagging some projects in a month's time. IVRCL is also looking at selling off parts of its land bank across Chennai, Visakhapatnam, Bangalore, Pune and Noida. It has a land bank of around 3,000 acres.crackcrack