Expect 14-15% FY12 growth, no pricing pressure seen: Elecon

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Expect 14-15% FY12 growth, no pricing pressure seen: Elecon

Prashant Amin, executive director of Elecon Engineering spoke to CNBC-TV18 about the new orders the company has bagged from McNally Bharat and what it means for their financials.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Elecon Eng See previous management interviews See what other Experts & Brokerages are saying about Elecon Eng

Prashant Amin, executive director of Elecon Engineering spoke to CNBC-TV18 about the new orders the company has bagged from McNally Bharat and what it means for their financials.

Below is the edited transcript of the interview. Also watch the accompanying video.

Q: Can you take us through what is your order book position and does it stand substantially better than what it was a quarter ago?

A: Our order book position today stands at roughly Rs 1500 crore, out of which about Rs 1160 crore is in the material handling division. The balance Rs 340 crore is in our gear division. So we are quite comfortably placed in terms of our order booking.

Same time last year, we were around Rs 1200 crore, so we are sitting pretty in terms of what we have in our hand.

Q: This gives you visibility of work for how long?

A: Last year, our turnover from the material handling division was about Rs 1217 crore and we expect to grow at roughly about 20% this year.

Q: Between the material handling division and the transmission equipment division how is the scenario looking?

A: At this point in time, on transmission products, we are not facing a whole lot of pricing pressure. What we are facing is project slowdown in the general economy that has put down a little bit of a break on lifting of the gear boxes at the project site. But we are continuously growing, this year we at about roughly 14-15%, and we see that going forward for at least end of the year.

Q: So Chinese competition not weighing on the business?

A: No not at all because we are not into the smaller gear boxes. We are into large and specialized gear boxes where we have more emphasis on.

Q: There has been a lot of share buying by your promoters. What does their stake stand at and how much have they acquired this year?

A: We haven't acquired substantial amount. It is just that we feel that considering our present position and the corrective actions that we have taken, the stock is quite attractively priced. This shows our confidence in what we are doing and also it is undervalued as we see it.