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Construction : Cover Story | August 2018 | Source : CW-India

Presenting CW's Top Challengers 2017-18 from infra and allied sectors that have managed to post growth despite economic challenges

Simply put, when you feel comfortable in work and life, a sense of stasis sets in, usually halting the process of growth. On the other hand, when we are thrown into unique situations or forced to do something unfamiliar, we grow. In the past few years, India Inc has gone through many such churns. And, those who accept current realities and try and overcome adversities by applying the right strategies are able to grow.

Whether it is demonetisation or the implementation of GST, India Inc has had its share of challenges. The scenario has been even more daunting for infrastructure, construction and other affiliated sectors as they are capital-intensive. With rising NPAs, it has been difficult for companies to raise funds and achieve closure of projects owing to financial un-viability. Despite this, many companies have managed to post growth and it is only fitting to honour their efforts.

That is the genesis of CW's 'Top Challengers', chosen from the universe of construction and contracting, engineering, building materials and cement.

We have followed a rigorous method by focussing on parameters such as net sales, PBDIT and net PAT. While sales figures are important as they reflect the movement of demand for products or services, PBDIT figures guide us on how the company is performing at the operational level and its efficiency. As for net profit, it clearly shows how much is left for shareholders. Further, we have analysed whether these companies have risked their debt profile or leveraged too much; hence, parameters like long-term and short-term borrowings have been examined. We have also assessed the cash generation and investments of the company. With such observations, the companies that have managed to show their ability to grow have been chosen as true challengers showing their mettle.

In terms of net sales, PBDIT and net profit, we have selected companies that have shown improvement in at least two of the three parameters. Further, to emerge with a list of real challengers and the larger ones, we only considered companies with a market capitalisation of over Rs 5 billion and who have been able to post a profit in FY18. As most companies have not yet conducted their annual general meetings, we have sourced the data from the annual figures announced in their March 2018 results. Also, for companies with fiscal closing other than March 2018, the trailing eight quarter financial performances were considered. Companies that have not yet announced their March 2018 quarter results have not been considered. Apart from this, a few organisations chose not to participate in this process and hence do not figure in the list.

With regard to the rating, we provided a weighted average to three parameters: 40 per cent to sales, being a prime growth driver, and 30 per cent each to PBDIT and PAT. After ranking the companies on growth in percentage terms (FY18 over FY17), the rankings were provided with weightages. This process helped us rationalise the ranking process and all players were rated on similar ground.

We have decided not to rank our performers as the companies belong to diverse sectors.

So read on and salute our Top Challengers!



Dilip Buildcon
Gayatri Projects
KNR Constructions
Man Infraconstruction
PSP Projects
Welspun Enterprises

Ajmera Group
Indiabulls Real Estate
Kolte Patil Developers

Action Construction Equipment


Gallantt Ispat
Tata Steel

Everest Industries

Godawari Power & Ispat
Jindal Stainless
Steel Authority of India
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