Source - CNBC-TV18
Speaking to CNBC-TV18, Mr Deepak Khaitan chairman of Mcnally Bharat said that they have recently bagged a landmark INR 120 crore order which will mark the company’s entry into the road sector.
He said that “We have started concentrating on this sector recently and this will be the first large order we have bagged which will get us into a totally new area of infrastructure in the future.”
The company also bagged a smaller order worth INR 20 crore for extension of a material handling plant which was set up earlier.
He goes onto say that they are looking at increasing their orderbook to INR 3,500 to INR 4,000 crore by the end of this fiscal.
Below is an edited transcript of his interview with Reema Tendulkar and Sumaira Abidi.
Q - Can you take us through the two orders that you have bagged which have been disclosed today? There is some amount of confusion actually as for the correct amount. Is it a INR 144 crore, am I right?
A - Yes it was INR 144 crore by way of two orders. One is around INR 120 crore and the other is about INR 22 crore. The INR 120 crore is a landmark order for Mcnally Bharat because it gets us into the road sector. We have started concentrating on this sector recently. We have a full fledged team now working on it and this will be the first large order we have bagged which will get us into a totally new area of infrastructure in the future.
The INR 22 crore order is an extension of a material handling plant. It is a small order for which the initial material handling plant had been put up by us. So this is a small order on the extension.
Q - Could you tell us the timeline of execution, just to get a sense when the revenue from these two current orders would flow in and also at what margins?
A - This all is going to flow in into revenue of 2012-2013. Normally these orders are between 15-18 months, so whatever orders we book now is for FY13 and 2013-2014. Margins are round about 10%.
Q - What does this take your current order book up to and any orders that you are currently bidding for?
A - Current order book would go to about INR 3,300 crore. We are in process of bidding for many jobs, but there is a slowdown taking place. Hopefully we feel that this should get over in two-three months time.
We have a plan to be at about INR 3,500 to INR 4,000 crore pending order book on 1st of April. So we are keeping our fingers crossed, it's just that it is taking time with whatever is happening in this country.
To read full transcript, please visit www.steelguru.com
