PBA Infra expects order book of Rs 2000cr in next 6 months

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In an interview with CNBC-TV18, Ramlal Wadhwan, Chairman and Managing Director of PBA Infrastructure , spoke about his outlook for the company.

Below is a verbatim transcript of an exclusive interview with Ramlal Wadhwan on CNBC-TV18. Also watch the accompanying video.

Q: We saw your notices about a bunch of orders that you got. They look like sub-contracting orders. Can you take us through what is the total quantum of orders you won in the last one month? What dose it take your order book to?

A: In the last two months we have taken a work order of about Rs 252 crore.

Q: Can you take us through the nature of these orders? Were they subcontracting orders and from whom were they given?

A: We have taken work from Oriental Structures at Nagpur, which is Rs 150 crore. It is the complete roadwork of NH6 for 20 km. Out of that 100 km work, we have taken 20 km which is going on well. Another one worth Rs 95 crore from Sadbhav Enginneering which is for all the border check post where we have to do a lot of concreting, road work and some building work also at three places--Solapur, Umargaon and third would be near Sawantwadi.

Q: After the coming up of these orders, where does this take up your order book now to?

A: About Rs 800-900 crore

Q: Your margins had seen a slight slippage in third quarter, dropped to 14.5 from 15.5. What is the outlook going forward? Are you seeing some pressures in terms of raw materials, raw material costs have seem to be risen in the past few weeks?

A: No.

Q: What kind of margins will you be able to report? Will you be maintaining 14.5% margins?

A: About 14%.

Q: How long will this Rs 900 crore order book last you? Does it give you work for one year?

A: As per our present turn over, it would be for two years.

Q: What about orders that are in the pipeline? You may have bid or you maybe in the conversation with other contractors.

A: We have made a pre-qualification for Rs 10,000 crore with different contractors like Sadbhav, J Kumar, RP Shah, Atlanta and some other small contractors

Q: Where do you expect your order book to be in the next six months?

A: About Rs 2,000 crore.

Q: Can you give us an idea of what you may report in terms of revenues in FY10 in the current year? What will be your revenue growth in FY11?

A: The revenue for FY11 would be Rs 480 - Rs 500 crore. For FY10 it would be Rs 400 till March 31, 2010. EPS for FY10 would be about Rs 11.85 and for FY11 it would be Rs 14.22.