My first lesson in project finance came from a stack of conveyor idlers standing in the monsoon rain. In 2001 I was the junior accountant in a public-sector company's site office in Odisha, where we were supplying and erecting material handling equipment for a blast-furnace expansion. Our books showed the idlers as supplied and seventy per cent paid. The client's engineers recorded them as not yet installed, and their contract said the remaining thirty per cent waited on installation. Both records were correct. The cash followed only one of them, and since then I have read every contract's payment terms before its price.
03 / Plate and currency risk in fixed-price orders
04 / Bank limits, guarantees and credit ratings
05 / Capital allocation and incentive-linked proposals
06 / Related-party oversight in a promoter group
07 / Private equity reporting and sale readiness
Consolidated revenue, FY2025-26
₹3,140 Cr
Process Equipment ₹1,820 Cr; Projects ₹1,320 Cr
Order book, March 2026
₹6,850 Cr
About 2.2 years of revenue
Net debt to EBITDA, March 2026
0.4x
Down from 4.0x in March 2019
An engineering order book is a claim on our cash, our steel and our bank lines long before it becomes a claim on the client.
I am the chief financial officer of Ilvara Engineering Limited, a fictional Vadodara-based maker of process equipment and builder of industrial projects, listed on the NSE and BSE. In the year to March 2026 we earned revenue of ₹3,140 crore and EBITDA of ₹358 crore. Our Process Equipment division fabricates reactors, columns, heat exchangers and pressure vessels for refineries, fertiliser plants and chemical producers in India and the Gulf. Our Projects division designs and builds bulk material handling systems and effluent treatment plants for steel, cement and port clients. In March 2026 the order book stood at ₹6,850 crore.
A project company earns its margin slowly and spends its cash early. Plate is bought months before a vessel ships, bank guarantees are issued before the first advance arrives, and a fifth of a contract can sit unbilled until a client's own civil works are ready. I learnt this as a young public-sector accountant on a steel-plant site in Odisha, then pricing boiler contracts for a German group's subsidiary in Pune, and then as CFO of a private equity-backed foundry in Kolhapur, before I joined Ilvara in June 2019.
When I arrived, net debt was four times EBITDA, ₹780 crore of finished work sat in contract assets and our banks' limits for guarantees were close to full. The order book looked like strength, and in one sense it was. But every new order drew on the same three scarce things, and nobody was rationing them. My work since then has been to price those draws inside every bid, and to give a promoter-led board a plain account of what each order costs us before the client pays for it.
Unbilled work brought back into the client's payment cycle
Projects division contract assets fell from ₹520 crore in March 2020 to ₹270 crore in March 2026, while the division's revenue rose from ₹980 crore to ₹1,320 crore. The new billing terms cost us two steel-plant tenders worth ₹640 crore.
Fixed-price margins held through a plate-price surge
Locking plate and currency on the day an export order is signed kept delivered margins within 0.8 percentage points of bid on average across 2021–22 and 2022–23, against an average shortfall of 4.6 points in the three years before.
Bank limits recovered without a promoter pledge
We released ₹410 crore of non-fund-based limits in fourteen months by recovering expired instruments and renegotiating terms, instead of adding promoter collateral. Our long-term credit rating has since moved from BBB+ to A.
Debt brought within a year's cash flow
Net debt fell from ₹890 crore, 4.0 times EBITDA, in March 2019 to ₹140 crore, 0.4 times, in March 2026. Net working capital fell from 128 days of revenue to 84 over the same period.
Current focus
I am preparing the board's decision on a ₹1,400 crore export package for a Gulf refinery, which would occupy about ₹420 crore of our bank limits for five years, roughly a sixth of what we have. Alongside it I am completing a bid-capital model that shows the cash, plate and bank capacity each live tender will consume, so that sales and finance argue over the same numbers.
Conversations I welcome
I am not seeking to leave Ilvara. I would consider one independent directorship at a listed manufacturer outside our sector and supply chain, joining its Audit Committee and, after a year as a member, chairing it if the board wished. I can give about twenty-eight days a year, subject to my own board's consent and a conflicts review. I also accept occasional invitations to speak to finance and audit-committee audiences.
Beyond the page
The record behind the perspective.
In the boardroom
Ilvara Engineering FZEDirector of the wholly owned UAE subsidiary, in an executive capacity · 2020–present
Formation
Bachelor of CommerceKherwadkar College of Commerce · 1995
Chartered accountant, after articled trainingWadhwakar & Joglekar · 1997
Arjun's papers arrive with the uncomfortable number on the first page. When a site had counted uninstalled equipment as progress, he rang me himself before the auditors began their review, with the cause and the fix already written. In a promoter-led company, that habit is worth more to an Audit Committee chair than any presentation.
Revathi KanchibhotlaFictional independent director and Audit Committee chair, Ilvara Engineering LimitedThe full record ↗
Contact
I am not seeking to leave Ilvara. I would consider one independent directorship at a listed manufacturer outside our sector and supply chain, joining its Audit Committee and, after a year as a member, chairing it if the board wished. I can give about twenty-eight days a year, subject to my own board's consent and a conflicts review. I also accept occasional invitations to speak to finance and audit-committee audiences.
