The speciality cables manufacturer CMI Ltd said on Monday that it has bagged orders worth over Rs 30 crore from East Central Railways and Bharat Heavy Electricals Ltd (BHEL), to provide railway signalling cables and HT XPLE cables, respectively.
The order worth Rs 9.97 crore from BHEL to supply HT XPLE cables will be delivered within the next four months, while the order for the railway signalling cables for Rs 20.68 crore will be staggered over a period of eight months, the company said in a press statement.
These orders are also revenue accretive and together with several other orders (received in May 2017), will add over Rs 151 crore to the topline for FY 17-18, it added.
While the supply of signalling cables and quad cables to railways contributed 45% to the total revenues of the company in 2016-17, supply of power cables contributed over 12% to the total revenue. The contribution of the power segment to revenues of CMI is expected to reach around 15% by 2019. Supply of wires and cables to railways has seen a CAGR of 88% over FY 13-16 and it is expected to continue growing at 28-30% over the next few years (FY 16-19).
“With continued focus of the government on redefining both the infrastructure segment and Indian Railways, we believe that the industry will grow at a fast pace. We have the wherewithal to be the preferred choice to provide high quality wires and cables for their every need. Our continuous focus on unwavering quality and our zeal to improvise tilt the balance in our favour,” said the company managing director Amit Jain in the statement.