'Nuke deal +ve for Rolta-Shaw Stone JV'

Kamal K Singh, CMD, Rolta India, said the company is looking at the nuclear deal as a positive because one of their engineering joint venture is with Shaw Stone & Webster. Shaw Stone & Webster provides a complete end-to-end concept to completion of nuclear power plants and they have done almost 60-70% in America, he said.

Out of the aforementioned plants, about six of them are installed in China right now, Singh added. Till 2015, USD 50-60 billion worth of investment will go into this kind of programme. Out of that, about 10% would go into project designing, installation, commissioning and project management.

"Rolta also plans an acquistion soon which is regarding business intelligence in Enterprise Resource Planning (ERP) and this will help us going up the value chain for customers to be able to provide a complete solution in that space," Singh said.

Excerpts from CNBC-TV18’s exclusive interview with Kamal Singh:

Q: How are the prospects looking? The nuclear deal will probably be underway and a lot of your business comes from defence system. How are the prospects looking for the next 12-24 months for Rolta?

A: We are looking at this nuclear deal as a positive thing because one of our engineering joint venture is with Shaw Stone & Webster. Shaw Stone & Webster is a world leader for providing a complete end-to-end concept to completion of nuclear power plants and they have done almost 60-70% in America and right now about six of them are installed in China. So I see this as a big positive coming in terms of the business which can be coming to the joint venture as we go forward in next 12-36 months.

Q: How much of that you see coming in contribution to your bottomline if you could put some number to it?

A: Almost USD 50-60 billion worth of investment will go till 2015 into this kind of programme and out of that I would say about 10% goes into project design to designing, installation, commissioning, project management those are the kind of things which we can do through joint venture. I would not talk about the procurement; I would not talk about the construction but if we take 8% about USD 4-5 billion and if two-three companies can max do in this country then I see about few thousand crore coming as revenue on topline and almost goes on the bottomline in the same proportion as what we have been doing.     

Q: What kind of earnings growth you expect over the next 12-24 months?

A: We have just closed our financial year so we are expecting more than 45% revenue growth and more than 40% bottomline growth barring the foreign exchange fluctuations which we might have to provide. Having said that for the next year also we are optimistic to look the growth in the same angles and possibly improve them.    

Q: One word on acquisitions: we believe that you are finalising one right in the near-term?

A: Yes; we are in the process of doing that. This is regarding business intelligence in Enterprise Resource Planning (ERP) and this will help us going up the value chain for customers to be able to provide a complete solution in that space.