rpg transmission

RPG Transmission Ltd (RPGTL) is a player in power transmission, railwayelectrification and telecommunication tower constructing and erecting space.The company is engaged in designing, constructing and erecting of highvoltage AC and DC transmission lines. RPGTL had been making losses for sixyears and has turned around at operational levels during the year. Thegovernment has laid emphasis on development of power, transmission anddistribution sector. This will lead to laying of 60,000ckm transmissionlines for distribution of power from surplus states to deficient states.With RPGTL turning around it will now be eligible for bidding for tendersfrom Powergrid Corporation of India Ltd who issues majority of the contractsto private players. The company undertook CDR last year under which itrepaid a portion of its debt and replaced the remaining with lower costdebt. The company has a confirmed order book of Rs4bn, which is nearly3.9xFY05 annualized revenues. The company also bid for a couple oforders whereit is the lowest bidder and expects them to be awarded in the near future.*With acceleration in power sector reforms, and focus on transmission anddistribution and the company turning around during the year we expect thecompany to post a jump in its earnings for the next couple of years