Mar 10, 2011, 05.22 PM IST | Source: CNBC-TV18

On track to meet full year target of Rs 6250cr: IVRCL Infra

In an interview with CNBC-TV18, Sudhir Reddy, chairman and managing director of IVRCL Infrastructure said that the company is on track to meet its full-year guidance of about Rs 6,250 crore.

Sudhir Reddy, CMD, IVRCL Infrastructure

In an interview with CNBC-TV18, Sudhir Reddy, chairman and managing director of IVRCL Infrastructure said that the company is on track to meet its full-year guidance of about Rs 6,250 crore.

The company's current order book position is at Rs 24,000 crore and from that nearly Rs 6,000 crore is internal.

Below is the verbatim transcript of Reddy's interview with Gautam Broker and Latha Venkatesh of CNBC-TV18. Also watch the accompanying video.

Q: Interest costs have been a bit of a concern at IVRCL, we have seen a jump up in Q3, with all this talk of crude going up and the macro concerns, what is your outlook on interest rates? How your cost increased in Q3 and what is  the outlook going forward?

A: Normally in Q4 we do little bit of higher turnovers, our establishment costs, our other things are managed within that. Right now our debt-to-equity is almost close to about 1 or 1.1. Out of which about Rs 295 crore to Rs 300 crore has been lent to the subsidiaries and they are making all efforts for that money to come back.

If that happens and with the kind of turnover what we will end up doing in the fourth quarter, our debt-to-equity will come down to almost about 0.85 or 0.9. So, I guess we are pretty comfortable in that.

Q: The other problem has been execution. Your full-year guidance is about Rs 6,250 crore, are we on track for that? Would you like to up your guidance for this month?

A: Yes, we are almost there. A little bit here and there but the first two months of the last quarter showed a decent traction.

Q: The first nine months you did about Rs 3,700 crore so going up to Rs 6,200 crore would be a tall order, will you make it north of Rs 6,000 crore?

A: It looks like. We did about Rs 2,400 crore to Rs 2,500 crore in the last year.

Q: What do you expect you will do by way of margins? Are you seeing any pressure because of higher raw material prices?

A: We need to look at it as two different companies at two different times. One is IVRCL which is purely under engineering, procurement and construction (EPC). We do work for IVRCL Assets and Holding the build-operate-transfer (BOT) segment so they will take the brunt of the price escalation, not IVRCL. We work for government companies too that's the whole way to look at it.

Q: What is your current order book and also what part of it is internal orders? We expect execution to pick up in the final quarter in these internal orders which is why revenues could achieve that Rs 6,250 crore mark.

A: Our order book position is at about Rs 24,000 crore and from that nearly Rs 6,000 crore is internal. The traction is fantastic in Indore-Jhabua roads. Our tankages projects are also coming out with some fantastic numbers. Apart from that, we are moving pretty well even in rest of our works.

IVRCL stock price

On April 16, 2014, IVRCL closed at Rs 14.53, down Rs 1.12, or 7.16 percent. The 52-week high of the share was Rs 23.25 and the 52-week low was Rs 9.80.


The latest book value of the company is Rs 70.68 per share. At current value, the price-to-book value of the company was 0.21.

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