Mecon plans to go public, eyes profitability next year
27/11/2017 00:07
State-run consultancy firm Mecon has plans to list its shares as soon as it turns profitable by the next year, a top company official said as per the PTI report.

"(Listing) is our priority. We want to become a listed entity... to list our shares in the stock market," Mecon Chairman and Managing Director Atul Bhatt told PTI in a interview.

On being asked about the time-frame and plans to take the company public, Bhatt said the decision will be taken "as soon as we turn profitable which is by next year".

The company's profit after tax (PAT) which was at 78.65 crore in the first half of FY'17 came down to 5.1 crore in the second half of 2016-17.

"Mecon is on the path of sustainable growth. In 2015-16, our losses were about Rs 1,060 crore. In the first six months of the year, Mecon made a (consolidated) net loss (of about Rs 80 crore)," the CMD said.

Attributing the poor performance of the company to the high manpower cost, Bhatt said that soon after taking charge of the company in October last year, he went for the portfolio analysis and the projects which were reaping profits were put on fast-track.

"So as a result, if you see the second six months, I mean it's a remarkable story that I reduced my losses from Rs 80 crore to only Rs 5 crore (2016-17)," Bhatt said adding that "turnover which was about Rs 90 crore, I increased it to Rs 250 crore which is more than double. And my expenses did not go up to that extent".

On the decision to give promotions to employees, "You know we thought that we must motivate the employees so we gave promotions for last year which were pending," he said.

In 2016-17, the company secured a order booking of Rs 1,419 crore -- all-time high in the history of Mecon.

With the metals sector under stress, the company's intense focus on augmenting its non-metal business met with considerable success and business worth Rs 783 crore was secured from the diversified sectors of infrastructure, oil and gas, power, defence and space.

Mecon Ltd, a public sector undertaking under the steel ministry, is an engineering, consultancy and contracting organisation, offering full range of services required for setting up of project from concept to commissioning including turnkey execution.

The company has 1,465 experienced and dedicated engineers, scientists and technologists, having a network of offices spread all over the country, experienced in handling consultancy assignments and EPC projects.