New plants may pump Rs 100cr more revenues: Kirloskar Bros

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New plants may pump Rs 100cr more revenues: Kirloskar Bros

Sharing more on the company’s expansion plans, RK Srivastava, whole time director of the company tells CNBC-TV18 that the plans are all set to bring in additional revenue of Rs 100 crore in FY12.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Kirloskar Bros See previous management interviews See what other Experts & Brokerages are saying about Kirloskar Bros Kirloskar Bros BSE | NSE 29/05/12 Are Mutual Funds betting on Kirloskar Bros?

Kirloskar Brothers recently added a new facility at Coimbatore. The manufacturer and exporter of pumps and valves is also commissioning some large pumps for condensive cooling water applications.

Sharing more on the company's expansion plans, RK Srivastava, whole time director of the company tells CNBC-TV18 that the plans are all set to bring in additional revenue of Rs 100 crore in FY12.

"The Coimbatore plant is already commissioned, another plant is coming up at Ahmadabad and will get commissioned by December," he says. The capacity is pumped up to 2.5 lakh pumps per year; and "the company has started with almost half the capacity now," Srivastava adds.

Below is a transcript of RK Srivastava's interview with CNBC-TV18. Also watch the accompanying video.

Q: Can you take us through the kind of expansion plans that have borne fruit for FY12?

A: The plans were there since last year and are under implementation this year. Right now, we have commissioned the Coimbatore plant and another plant is coming up in Ahmadabad, which will get commissioned at the by December.

Q: Are both meant for thermal power projects?

A: No, these both are more of domestic pumps.  One is for mini pumps, which is a small mono block and other is submersible pumps that will be more for agriculture and domestic.

Q: How much do both of these plants contribute in FY12? What is the capacity, what kind of revenue targets are you looking at?

A: We have the capacity of 2.5 lakh pumps per year; however, we have started now with almost half the capacity.

Q: What kind of revenue addition are we going to see from these plants?

A: We may have Rs 100 crore from these plants.

Q: When do you expect to begin selling condensive cooling water applications?

A: We have implemented more than 160 pumps now and others are in process. The largest pumping station that has done is for Tata Power for Mundra Ultra Power Plant, which is commissioned. We have very recently got an order from Hinduja that is inside the sea.

Q: What is your order book for this segment?

A: For this segment the order book is almost Rs 1,000 crore.

Q: Your order book was down about 15% year on year last quarter has that situation improved and what is the on ground situation with regard to AP Irrigation orders, have they improved?

A: AP irrigation now under execution they have paid all the money which were pending and projects were more or less sluggish and now already under execution, it has picked up now.

Q: What is the total order book at this point?

A: The pending order is almost Rs 3,500 crore.

Q: What kind of revenue growth are you looking at for your consolidated entity in FY12, in terms of revenues?

A: FY12 we are definitely going to be better than FY11.

Q: What could be the percentage increase in revenue numbers that you are looking at?

A: I think it should be around 10% plus.

Q: Would it translate into an improvement in margins or will margins be hit?

A: We expect improvement.

Q: By how many basis points?

A: I don't think we can tell exactly, I can tell you it is on the positive side.