PSL confident of closing FY12 with strong orderbook

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PSL confident of closing FY12 with strong orderbook

In an interview to CNBC-TV18, Ashok Punj, managing director, PSL said, the company is confident of closing the year with a strong orderbook. "We hope to improve on this before March year end," he said.

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Pipe manufacturers PSL recently bagged order worth Rs 280 crore for coated pipe supply to Gujarat Water Board.

In an interview to CNBC-TV18, Ashok Punj, managing director, PSL said, the company is confident of closing the fiscal year with a strong orderbook . "We hope to improve on this before March year end," he said.

PSL's current consolidated order book is roughly at around Rs 3,000 crore.

Below is the edited transcript of Punj's interview with CNBC-TV18. Also watch the accompanying video.

Q: You were awarded new orders, could you tell us the quantum, where would your order book stand at and when would they show up in your balance sheet?

A: Last week we had announced gathering of orders towards the end of December worth Rs 925 crore. Subsequent to that we received an order worth Rs 280 crore. Most of these come from the same belt. These are orders relating to the Gujarat water supply.

This was a series of orders released by Gujarat government to construction companies. They in turn have then placed their requirements for pipe supply on PSL. Three-four of these aggregate to Rs 924 crore which we had announced beginning of last week and subsequently this additional order for Rs 280 crore.

Q: As a whole how much are you bidding for, for the remaining fiscal?

A: We have an outstanding of large value but we are looking for placement of orders in the next three months that means this quarter on several of this bid outstanding. We are confident that the year will close with a strong order. We are roughly around Rs 3,000 crore consolidated order book basis. We hope to improve on this before March year end

Q: What are the kind of margins you are enjoying on these new orders? Have we seen an increase in competitive intensity on account of increase in raw material prices. Is there a slip in margins?

A: In our product line steel pricing is critical to margin maintenance and fortunately steel prices have been ruling either level or modestly on the decline. Therefore, we are confident that margins will be maintainable at levels as we budget them when we bid. They will not come under pressure, which they do if steel prices are volatile or are on the upward swing. On these present order books we have booked much of steel already and margins should be maintainable.