TRF bags Rs 125 cr port equipment contract

Gupta says that they have previously been associated with Navyug on a number of projects. However, this is the first project the order of which, has been finalised.

The order is of Rs 125 crore for port equipment and has been booked. The execution time for the project is one-and-a half year. Gupta says that their margins will depend upon competition and the sort of technology that they are putting in.

Excerpts from CNBC–TV18’s exclusive interview with Santosh Gupta:

Q: Is this the first order that you have received from Navyug Engineering, or is it one of the series, or are they your regular clients? When will you see the order being infused into the books?

A: We have been associated with Navyug on a couple of projects. This is the first project on which the things have moved and the orders too have been finalised.

Q: When will the order be booked?

A: The order has been booked. We have received the order. As communicated on Thursday, to stock exchanges, it is a Rs 125-crore order for port equipments.

Q: What is the execution time for this project?

A: Execution time is one-and-a-half year.

Q: What is your total order book position after inclusion of this order?

A: I don’t share my order book position as a policy.

Q: Any more new orders in the pipeline?

A: The economy is buoyant, lot of money is getting allocated to infrastructure projects and TRF caters to infrastructure projects, of which the port project is one.

We have associations with different persons, so we have been waiting for port equipment and as and when the orders get finalised, we will get chance.

Q: What about your margins, because last quarter itself there was a bit of a squeeze? Do you see any pressures going forward?

A: The margins will depend upon competition and the kind of technology that you are putting in. It is not a business like TV or Refrigerator, where you decide your selling price and then sell at that price. This is a comparative world, where we have to follow the tender route and you have to emerge the lowest.

Q: What sort of margins are you expecting in the next quarter?

A: Margins will fluctuate but these are jobs in which, normal margins prevail in the construction business. As regards to your comment that our margins will squeeze, I would just like to mention that we finished our Q3, the results of which were published.

Our PAT was Rs 10 crore plus, which was the highest ever that the company has posted in history, even for one full year and also, this was on a turnover of Rs 207-208 crore, which is 5% plus and that is another first in the history of the company.

Q: What is your guidance for FY08 in the light of the Q3 performance?

A: Over the years if you see our track record, things have only improved in terms of both topline and bottomline; we lay more emphasis on the bottomline. We are working towards that and I foresee things on a rising path. There is no reason for us not to continue on that rising path.