Anand Rathi Securities has initiated coverage on Pratibha Industries with a buy rating and a price target of Rs 290. Discussing the company's prospects Ajit Kulkarni, its Managing Director, said they were on target to meet the 12-13%profit margin. They expect to do revenues of Rs 580 crore.

Their current order book position is at above Rs 1,600 crore.

Excerpts from CNBC-TV18's exclusive interview with Ajit Kulkarni:

Q: Where do you see growth coming in from, going forward? Last time the company had set a margin guideline of 12-13%. Are you on target to deliver such growth on your margin picture?

A: We are on target.

Q: Street expectations are Rs 580 crore on the topline and Rs 42 crore on the bottomline for FY08. Is that a target you are working towards?

A: Of course.

Q: Where would the growth come from and what margins are you targeting for FY08?

A: Growth will come from the water supply segment, for which we have taken orders now. We have received tunnel jobs and our factory has also started commercial production of spiral plant.

Q: What's you current order book position in total and segment-wise?

A: It is above Rs 1,600 crore. Segment-wise, 60-65% is water, roads would be 10%, and the balance is buildings and malls.

Q: Do water projects have higher margins that will drive your overall margins higher?

A: We will maintain margins, be it water pipelines, tunnels or anything else.