Bondada Engineering Aims To Double Revenue, CAGR Annually Over Next Three Years On Strong Order Book
Bondada Engineering's current order book positions it to secure additional growth, with a projected value of Rs 8,500 crore by March 2025.
Bondada Engineering Ltd. aims to double its revenue and compound annual growth rate yearly over the next three years riding on a large order book across segments, according to the construction engineering firm’s founder and Managing Director Raghavendrarao Bondada.
Talking to NDTV Profit, Bondada revealed that the company—focused on engineering, procurement, and construction (EPC) services, as well as operations and maintenance (O&M) services—has an order book of over Rs 5,300 crore to be executed over the next three years.
This will help Bondada Engineering achieve its target of doubling its revenue each year over the next three years and subsequently grow its CAGR, according to the BSE SME company’s founder.
“For the last 12 years, our CAGR growth rate has been 53%. This year onwards, we are going to double it to 100%, he said.
“Last year, we had around Rs 800 crore in revenue. In the future, for the next 3 years, we are going to double it year-on-year because we have a confirmed order book that we have to deliver in the next 2 to 2.5 years,” Bondada added.
He noted that they had a “sufficient order book” to reach the revenue target.
“We have the sufficient order book to double revenues year-on-year for the next three years in both telecom EPC and solar EPC,” the Bondada Engineering MD said.
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He revealed that the company has been able to secure such a large order book on the back of a plethora of tenders being floated across government and private companies.
Over the last six months, the company has also been participating in bidding for tenders by public sector companies, Raghavendrarao Bondada noted.
“My order book is going to be almost around Rs 8,500 crore to Rs 9,000 crore by March 2025 after reporting the March ‘25 numbers,” the top executive said.
Out of the confirmed Rs 5,300 crore order book that the company sits on currently, around Rs 1,200 crore orders are from its O&M segment.
“Around Rs 1200 crore (of the order book) is from O&M (segment), which will be completed within the next 3 to 5 years. The remaining Rs 4,000 crore (orders) we have to complete in the next 18 to 22 months' time,” Raghavendrarao Bondada noted.
Around 75% of Bondada Engineering’s current order book falls under the solar EPC category, but at present the revenue share from its telecom EPC business is 59%. Talking about the revenue mix going forward, its founder said that most of it is going to come from the solar EPC segment.
“Going forward, telecom (EPC revenue) is going to be around 30% to 35%, and solar EPC (revenue) is going to be around 70% to 75%,” he said.
Shares of Bondada Engineering Ltd. were trading 5.7% higher at Rs 678 per share on BSE, while the benchmark BSE Sensex was 0.16% higher at 81,637.76 points.
