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Jun 08, 2012, 08.06 AM IST
SN Subrahmanyan, whole-time director & senior executive vice-president, L&T, says that we are seeing good opportunities in construction sector in the last few months.
Below is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video.
Q: How does future order inflow looks going ahead?
A: We are seeing good opportunities in construction sector in the last few months where we have declared orders and hope that the quarter will turn out to be as predicted.
Q: Can you give us some more details about the orders that you have just won?
A: Currently, we have bagged three orders in different sectors. We have picked up order of Rs 1,800 crore for construction of building and factories for leading developers in North India. In infrastructure sector, we have received order from a prestigious client and old-time client i.e Delhi Metro Rail Corporation and lastly an order of water affluent treatment from Bangalore Water Supply and Sewerage Board.
Q: How much margins do you expect from these orders?
A: We don’t find any change in that sense.
Q: What are your margins in 2012?
A: In 2012 margins was nearly 10% and we will continue to maintain that margin.
Q: There has been a slight change in the macro outlook with fall in crude prices and expectations that RBI has some headroom for easing. Do you think there is material monetary easing happening in the next few quarters and that could boost the order inflow or do you think people are still cautious in wait and watch mode?
A: People in power understand that something needs to be done. Going ahead we will have a healthy GDP growth. Last two years had been extreme difficult. Falling crude prices and easing monetary conditions is a positive indication for the economy. The PM’s calls to push reforms in infrastructure, energy and urban projects will give fillip to the construction sector.
Q: Where does the order book currently stand and how does it look in FY13?
A: Currently, the order book is about Rs 1,06,570 crore. If things go well on construction side we should see order book of Rs 1,30,000 crore.
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