In consonance with the growth strategy through acquisitions, as outlined in the IPO in September, Bharat Road Network Limited (BRNL), a Srei initiative recently announced consolidation of 100% stake in Guruvayoor Infrastructure Private Limited (GIPL) by acquiring the remaining 51% shares in the project (subject to regulatory approval) from KMC Infratech Road Holdings Ltd. (Group Company of KMC Constructions) at a consideration of` 97 crore. This will give the company access to` 100 crore of free cash flow in the project. BRNL also reported standalone revenue of` 1461 lakh during the quarter ended September 30, 2017 as compared to` 387 lakh during the corresponding period of last year, registering a growth of 2.8 times. The company’s standalone profit after tax during the quarter ended September 30, 3017 was` 787 lakh as compared to` 7.6 lakh in the corresponding quarter of previous year, registering a growth of 101 times.
Commenting on the acquisition and the financial performance, Bajrang Kumar Choudhary, Managing Director, BRNL, said, “We are pleased to demonstrate our capability to enhance shareholder value through improved operating metrics and acquisition. The recent announcements on massive highway expansion programmes under ‘Bharatmala’ make us confident that opportunities for growth and value creation will continue to expand. We will continue to leverage our unique and proven track record in managing infrastructure assets under public private partnership model to drive long-term growth. We remain confident of increasing our operating profits and managing interest costs and capital expenditures efficiently.”