This point is, still in the possibility zone, right ? 60 days is the normal payment cycle. In Infra, IF they take a 100 cr. project, of course it’s going to lead to cash flow problems. Right now infra share in overall revenue is 7.5-8%.
We can take the 12 odd cr. Surat project’s payment schedule as an example. Where 40% of the payment comes after a good chunk of work (Sl. No. 3) is done and another 45% after some important but light work like system integration etc…
I thought the possibilities on the Railway side was interesting.
Key takeaways on Railways : Current year business 1.18 cr. Expecting to get 15-17 cr. this year (FY24), but overall we see potential that in 2 years we can get 70-80 cr run rate. Approved sources margins are 30-40% more than development source margins. Cash Flow: ( Banks ready to discount the PO by ~90%, so cash flow is not a problem for Railway projects.). Development vendors have to do min. qty to qualify for approved vendor. We have developed 16 products and got approval for all of them.
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