Construction and material handling equipment-maker TIL today said it is looking at revenue growth of around 35-40% this fiscal on the back of demand from India's infrastructure sector.
The company, which has earmarked a capex of up to Rs 200 crore for this fiscal, also said its second plant for producing engineering equipment -- built near Kolkata at an investment of Rs 180 crore -- would be operationalised by July-end.
"We expect growth in the construction and mining segments to continue and the government to invest more on infrastructure. We expect a topline growth of 30-35% in 2011-12," TIL President and CFO Aloke Banerjee said during a conference call.
The company had reported a net income of Rs 1,375 crore last fiscal, which was a jump of over 30% from Rs 1,054 crore in 2009-10.
Regarding the capex for this fiscal, Banerjee said: "We have fixed a capex of around Rs 175-200 crore for this year. Of this, around Rs 140 crore will be for the new plant, phase I of which will be operationalised by end of July."
The new plant will produce rubber mould, coal cargo handling systems and wielder crushers, among other items.
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The company also has an existing facility there for manufacture of mobile cranes, including rough terrain cranes and truck-mounted cranes. The total capacity is over 220 units annually.
Banerjee said margins in the last fiscal were under pressure as TIL expanded its manpower.
"From 1,672 people at the beginning of FY11, we increased our numbers to 1,898 during the financial year... However, despite this and investments made for the upcoming facility, our topline has gone up by 30%," he said.
He said the company has secured two big contracts worth a total of Rs 156 crore for supply of machinery to Bharat Coking Coal and SL Mining. Besides, it has entered into a Rs 286 crore maintenance and repair contract with the two firms for five years.
In 2010-11, TIL sold 1,181 mining equipment units, as against 923 units in the previous fiscal. It also sold 603 engines for use in power systems and 120 cranes.
He, however, refused to give a target for sales during the current fiscal.
TIL also markets Caterpillar-branded products in the northern and eastern parts of India.
In 2007, TIL had tied up with Caterpillar Financial Services Asia, the financing arm of Caterpillar Inc, the world's largest manufacturer of construction and mining equipment.
TIL provides financing solutions to equipment buyers in India and also distributes Caterpillar's equipment in parts of India.