Welspun Gujarat wins order worth Rs 600cr

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Welspun Gujarat wins order worth Rs 600cr

Speaking to CNBC-TV18 on the sidelines of the Deutsche Bank conference, Chief Financial Officer of the company, Akhil Jindal said that the order book is looking robust and also that the company is well capitalized and may not need further fund raising going forward.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Welspun Guj See previous management interviews See what other Experts & Brokerages are saying about Welspun Guj Welspun Corp BSE | NSE 30/05/12 Are Mutual Funds betting on Welspun Corp?

Welspun Gujarat has bagged orders worth Rs 600 crore for pipes and plates from various global clients.

Speaking to CNBC-TV18 on the sidelines of the Deutsche Bank conference, Chief Financial Officer of the company, Akhil Jindal said that the order book is looking robust and also that the company is well capitalized and may not need further fund raising going forward.

Below is the edited transcript of Akhil Jindal's exclusive interview on CNBC-TV18. Also watch the video.

On Order book

We got total orders worth around Rs 600 crore. That takes our order book position to almost Rs 7,200 crore and these are largely from the US market and also from the Indian market.

The Indian market orders are largely about the plates and that increases the plate order significantly. This also enhances Welspun's presence into the very selective plate market and that is the reason why we are pretty cheerful about this order.

On Margins

Margins are generally very static, in sense of our significant amount of productivity is there if you our margins are in the range of USD 200 -225 per tonne, on the pipe side and around USD 150 per tonne on the plate side. This is our endevour at any point of time continue to have these kind of margins and the story would not be different this time. So these margins could mean Welspun for the last 8 quarters has been able to constantly maintain its EBITDA per tonne, which we have been guiding to the market.

On fund raising

We have already done USD 250 million of fund raising in the two quarter. USD 150 milion from FCCB and USD 100 million of QIP, this USD 150 million FCCB would be utilized to me our capital expenditure and inorganic opportunities. While the QIP money is already used for retiring our high cost debt. I think the company is nicely geared at lesser than 1:1. We have got our entire fund raising plan almost fully met and there is no further requirement in the near future.

In case we go for any big bang acquisition or anything else, we might end up borrowing further. So I don't think we will come to the capital market in the next one-two years, I think the company is decently capitalized and in that sense the fund requirements are almost meant.