Current order book is over Rs 8100cr: KEC International

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Current order book is over Rs 8100cr: KEC International

In an interview to CNBC-TV18, Ramesh Chandak, managing director of KEC International & RPG Transmission said, the company’s current order book is over Rs 8,100 crore.

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In an interview to CNBC-TV18, Ramesh Chandak, managing director of KEC International & RPG Transmission said, the company's current order book is over Rs 8,100 crore.

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

Q: We understand that you have a strong order inflow which has been picking up in FY12. What we can expect on that?

A: Our order book, as of today, is over Rs 8,100 crore. At the end of the year, it was Rs 7,800. It indicates that our order book has been more than the execution rate. The order book from April, which we have received in the first five-six months of the financial year, is over Rs 1,700 crore. This is a very strong order book.

Order book is very evenly spread between the international markets and the domestic market. In the international market, largely the orders have come from the Middle-East area. We got orders from Kuwait, Saudi, and Ghana. Similarly, our Brazil operations have got very good orders. So, over all our order book has been very great. All of this is indicating that this year we will have a good growth.

Q: Significant portion of your revenues and order book comes from the American Space. Over there, what is the demand situation looking like? Are there any kind of slow down signs?

A: No. Particularly in Brazil, a lot of new demand is coming and there is a large business. Recently, we have received orders in USA as well as in Brazil, not only for our US company, but even for KEC International in India. We received a very good order from Canada. So, looking at the overall order book, almost 21% of our order book today comes from America - Mexico, Brazil, USA and Canada. So, according to us, that market is looking absolutely good as of now.

Q: Could you tell us what the L1 situation looks like with respect to the order booking?

A: .I think we are expecting in next couple of weeks some new orders to flow in from South-Asia. Normally, we don't disclose the amount. But almost three-four orders should be there in next four weeks time. There are some orders coming from Africa, and South Asia.

Q: With regards to the Middle East, how much do you expect it to contribute to your total order book by possibly FY12 end, FY13?

A: In the beginning of the year, it was about 13% of order book. Currently, it is about 15-16% of our order book. We expect that the Middle East North Africa part should be about 20% of our order book by the end of the year. We are seeing good enquiries in Saudi Arabia as well as the UAE. Depending upon of course our biding strategy, we expect that we should be able to get a good order book from both the regions- Saudi Arabia and UAE.

Q: Given that you are seeing such strong demand and your order book pipeline is so healthy, might we see higher revenue growth in FY12.

A: Normally, we don't give the guidance. I won't say the percentage. But I am very confident that the growth should be better than last year.

Q: Can you give the break-up of your order book? Where are you seeing the most traction segment wise?

A: About 72% is from the transmission sector in India and USA put together, about 19% from the power system division, about 5% from railway and rest is all the miscellaneous.