Schwing Stetter India eyes 20% growth in CY25 revenue

The Indian subsidiary of German concrete construction equipment manufacturer Schwing Stetter India (SSI) said it expects to post a 20% rise in revenue for CY25 due to a boom in the construction sector.

“We are hoping to end CY24 with a 5% growth in revenue at ₹5,700 crore. The next year is going to be a good year for the construction industry and we expect to post 20% increase in our revenue in excess of ₹6,500 crore,” CMD V. G. Sakthikumar said during an interaction.

Demand for concrete construction equipment machinery was expected to pick up in the coming months, he said and added that orders were expected to come in from October when excavations begin post monsoon and construction activity picks up during Q4.

Mr. Sakthikumar said that the company posted 10% growth in the first half of CY24 with a revenue of ₹3,300 crore. Growth in the second half is expected to be as in the last year at ₹2,400 crore. In CY23, revenue rose to ₹5,450 crore from ₹3,939 crore in CY22.

“We thought that industry would be impacted due to the Parliamentary polls. But, it did not. There was nil activity during the June-August 2024 period due to seasonal rains in the North. The next three months will augur good for us and in terms of growth, we will be much above the market curve,” he said.

On the ongoing ₹100-crore expansion, he said that it would get completed by March/April and commercial production would commence from April. The production capacity will go up due to the addition of a fabrication unit, an assembly line and a paint shop, he said.

In April, the company will take up the construction of a ₹350-crore greenfield project on 52 acres of land in Cheyyar. “We are in possession of land. Works such as land development, tree transplantation and levelling of land are currently on. The investment will be done in phases spread over next two years,” he said.

Schwing Stetter India products are exported to more than 50 countries. These were expected to net about ₹300 crore for CY24 and ₹500 crore the next year. As on date, SSI has an orderbook of ₹1,000 crore.

Published – September 21, 2024 09:08 pm IST

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