Simplex Infra reports growth of 67.71% in its net

BS Reporter / New Delhi June 30, 2008, 18:57 IST

Riding on the strong growth in India's infrastructure sector, Simplex Infrastructures Ltd has reported an increase of 67.71 per cent in its net profit during the financial year 2007-08.

The net profit during FY 08 stood at Rs 90.08 crore compared to Rs 53.71 crore reported during FY 07. The companies net profit during the quarter ended March 31, 2008 stood at Rs 29 crore reflecting a growth of 63 per cent over the same period previous year.

The company registered a total revenue of Rs 2812 crore for the year ended March 31, 2008 reporting a growth of 64 per cent.

However, the total expenditure of the company including consumption of materials, employee cost and other expenses has shown a sharp increase of 64.26 per cent to Rs 2544.61 crore in FY 08 from Rs 1549.10 crore during FY 07.

But experts opine that the company has successfully managed to overcome the sharp escalation in the prices of commodity prices that had hit the bottom lines of many of the infrastructure companies.

Shailesh Kanani, Infrastructure analyst, Angel Broking said,"Going by the general trend in the infrastructure sector, the market expected the the company to report a net profit of Rs 84 crore during the FY 08. However the company exceeded the market expectation and reported a net profit of Rs 90 crore".

At present Simplex infrastructure has an order book value of over Rs 10,000 crore with the share of overseas projects standing at 27 per cent of the total order value.