In an exclusive interview with CNBC-TV18, chairman of McNally Bharat Mr Deepak Khaitan said that the company is not facing any execution problems, but they are forecasting a shortage of contractual labour. He said that "Due to this, we are gradually mechanizing our execution abilities in our civil and construction site.”
Out of their current order book, McNally Bharat hopes to complete INR 1000 crore to INR 1200 crore by March and carry forward INR 3000 crore order book next year.
Below is an edited transcript of his interview with Reema Tendulkar and Ekta Batra.
Q - When you would possibly hear on your tenders and how much are they worth?
A - Two tenders worth about INR 450 crore to INR r00 crore. We are L1 on it and we hope to finalize this by end of February.
Q - Apart from that, how is the current deal pipeline looking? Are you all in the process of biding for new orders and what's the size of the tenders which perhaps opened up?
A - We are biding for a large amount of tenders in various sectors totaling about nearly INR 15,000 crore. We hope to finalize couple of these tenders by March end. This business of ECP each order delivery is about 18 to 24 months. So we are very keen to close some orders in the next three months so that our next years target can be maintained.
Q - In terms of execution how is the on ground situation currently for you all? Any sort of bottle necks that you all are facing and also how much are you all executing in terms of a total order backlog at this point?
A - Execution of orders is under control. We don't have much problems regarding execution there. At times delay on collection of money because the money supply at times gets stuck. We are now forecasting that the labor situation, contracted labour for construction is going to be in short supply going forward. So we are gradually mechanizing our execution abilities in our civil and construction site.
Our order pipeline at the moment, that is end December, is about INR 2500 to INR 3000 crore. We hope to do about INR 1000 crore to INR 1200 crore approximately in the next three months of January-February to March and hope to carry forward near INR 3000 crore order book into next year.
Source - CNBC-TV18
