Total order book stands at Rs 9000cr: KEC International

In an interview to CNBC-TV18, Ramesh Chandak, managing director of KEC International says, the total order book stands at Rs 9,000 crore. “It is the highest in the history of our company. This gives a very clear clarity for next one year,” he adds.

Below is the edited transcript of his interview with CNBC-TV18's Sonia Shenoy and Reema Tendulkar. Also watch the accompanying video.

Q: Can you just tell us about the new orders that you have bagged? What is the quantum and where have they come from?

A: The new orders, which we have secured recently about Rs 1,253 crore, consists of transmission —Rs 723 crore, power system —Rs 253 crore, water —Rs 123, cable —Rs 105 crore and telecom —Rs 49 crore.

We had a good break through in some of the countries. We have good order book, in transmission alone Rs 700 crore is from overseas, not a single order is from India. So that really has helped us to get a good order book.

Power system is again a mix of overseas and India. Almost 74% of total order book is coming from overseas market and 26% is from Indian market.

Q: Where does the total order book stand at this point?

A: Now, it's almost Rs 9,000 crore. It is the highest in the history of our company. This gives a very clear clarity for next one year. So, for next year, we are almost booked now.

Q: Could you tell us what the deal pipeline perhaps stand at? What are you all currently bidding for? What's the kind of revenue growth we will see in FY12 and FY13?

A: We don’t give guidance. But it is very clear that with this order book, the turnover growth will be quite good. There are a large number of tenders which are in the pipeline in power grid, even with the private utilities in India and also in some of the overseas markets.

We had increased new areas like power system and water and cable and telecom. So, even that is helping us substantially. In our new orders, Rs 700 is only transmission, balance Rs 600-700 crore is coming from the new divisions which we started. So, in a way our strategy of becoming a overall infrastructure company instead of purely a transmission company has really helped us to built this order book of almost Rs 9,000 crore.

Today, almost 35% of our order book is coming from the new divisions which we started recently, transmission is about 65%.