Current order book is close to Rs 1000cr: Om Metals

Below is the edited transcript of his interview with Reema Tendulkar and Ekta Batra of CNBC-TV18. Also watch the accompanying video.

Q: Where does you order book currently stands at? What are you biding for?

A: Currently, our outstanding order book is close to Rs 1,000 crore. It consists of hydro mechanical projects, civil projects and road projects that we have bagged in the last few years. We are expecting to add another Rs 300-400 crore worth of hydro mechanical and EPC orders in the next six months or so.

Q: You also have some real estate plans. Could you tell us what is it that you are planning to develop? How much could it bring in by way of revenue?

A: We already had a very valuable land bank across various cities. Our land bank in Kota, Jaipur and Mumbai is underdevelopment. We are expecting to realise revenues from our Kota project. We may have small bit of revenue in this financial year.

This financial year ending March '12, we will have significant revenues only from our engineering business. Real estate revenues will start flowing in from March '13 onwards and will be peaking at around March '13 and March '14 numbers.

Q: How much is your land parcel currently standing at and what are the projects which are currently under execution?

A: We have projects across Delhi, Kota, Jaipur, Hyderabad and Mumbai. The collective space that we are constructing is close to two million sq. ft. There are three projects out of this entire land bank across Kota, Jaipur, Mumbai and Hyderabad which are under development. We are expecting to do Delhi and Jaipur subsequently. But, at the moment, we are concentrating only on Jaipur, Kota and Mumbai.

Q: Your real estate you said would start contributing to your revenues in FY13. How much would it be? What kind of capital investment would you need in your real estate business?

A: We have already funded the land bank through our internal accruals. So, we don’t require significant capital infusion for land bank. But we may require about Rs 40-50 crore for the initial investment on the construction bit of it. Post that, everything else will be self funded because of the cash flows that will be coming in from this land bank.

In FY12, we will not have significant revenues from real estate, except our Kota project which might see a little bit of revenue coming from there. We will have significant revenues close to over Rs 200 crore from FY13 onwards.

Q: Update us on Bandra Slum Rehabilitation Project. When do we see something happening on that front?

A: This is a slum rehabilitation project. So, naturally there is significant amount of legwork that happens prior to the launch of the project. We expect to launch the project in about six-eight months from now, which is when there will be significant amount of work that will have to be undertaken. So, from revenue realisation point of view, I don’t think we will see neither anything in FY12 nor in FY13. Bandra project revenue may start flowing in from FY14 onwards.