Unity Infra, IVRCL JV bags Rs 1,150cr order

Yogen Lal, Chief Operating Officer, Unity Infraprojects, expects most of the revenues from the newly acquired order to trickle in from FY11. "We anticipate we will be doing better in the second half."

Here is a verbatim transcript of the exclusive interview with Yogen Lal on CNBC-TV18. Also watch the accompanying video.

Q: Could you tell us a bit about this JV and about this order that you have bagged of about Rs 1,144 odd crore?

A: This order has been bagged from the Municipal Corporation. It is for the construction of water supply tunnel just near the outskirts of Mumbai. The order is worth around Rs 1,1,00 odd crore to be executed over a period of 60-months

Q: What is your current order book and what percentage would this form of your current order book?

A: Our share in the JV with IVRCL is 50%. So this would contribute roughly Rs 570 crore as of today of our order book which currently stands at Rs 4,000 crore. So it is around 12-15% of our order book.

Q: Is this the only project that you would be undertaking in collaboration with IVRCL or are there more such orders in the pipeline?

A: We already are executing one project with IVRCL prior to this. This would be our second project with them. Generally, projects are taken on a strategic basis for individual projects. So going forward, we would be open to partnering with leading construction companies.

Q: In FY09 you saw revenues of Rs 1,030 crore and Rs 69 crore PAT. Could you tell us how much by way of margins or bottomline do you expect this order to trickle - give us some kind of a guideline?

A: Most of the revenues will start getting recognized from next financial year onwards because there are certain enabling works on this particular project which need to be done prior to physical commencement of work. The revenue recognition will start in the next financial year.

As far as Unity's growth is concerned, for this year, our half yearly sales have shown an increase of around 28-29%. Going forward we expect to maintain the trend. The second half of the year would be a better year for the construction business where we have peak working season and we anticipate we will be doing better in the second half.