Sep 17, 2012, 11.07 PM IST

High order book buoys BGR in slump waters

BG Raghupathy, CMD, BGR Energy explains to CNBC-TV18 that a high order book as compared to last year has helped the power company navigate the economic slowdown, reduction in PSU orders thanks to coal-allocation and land acquisition problems, damage caused by Chinese imports and drying up of offers from the private-sector.

Midcap Radar at 01:30 pm

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We do not expect any new orders from the private sector

BG Raghupathy

CMD

BGR Energy

Below is an edited transcript of the interview on CNBC-TV18.

Q: Could you explain the details of the order you recently bagged?

A: We bagged the order from Damodar Valley Corporation for part of NTPC 's bulk tender of 2x660 MW boilers at Raghunathpur, West Bengal. The value of the order is Rs 1,901 crore and with this our order book on hand is Rs 14,577 crore.

Q: Was the bid very competitive? What kind of margins are you expecting?

A: The competition included L&T and BHEL . The margin is slightly under pressure and this order takes the number of boilers to be delivered to six. When we do collective purchase, we hope to improve the margin to our annual levels of a PAT of 6% and a PBT of 10%.

Q: Can you tell us how the order book is shaping up? Has there been a growth in year-on-year terms?

A: In the last one-and-a-half years, NTPC's tender was the only order which was finalised. And out of a total order for 11 boilers, we bagged orders to make six boilers. In the tender for 800 MW turbine generators, we bagged orders for four boilers. However, the orders are yet to come shortly.

Q: How much has the economic slowdown affected your order book?

A: We have performed better this year with an order book of Rs 8,500 crore compared to an order book of Rs 1,600 crore last year.

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