Era Infra Engg expects 30-32% revenue growth this year

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Era Infra Engg expects 30-32% revenue growth this year

In an interview with CNBC-TV18, Joy Saxena, Group CFO, Era Infra Engg, spoke about the results and his outlook for the company.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » RELATED NEWS Accumulate Era Infra: Prabhudas Lilladher Era Infra Engineering reports Rs 814.19 crore turnover for quarter ended Jun 2010 ALSO READ See latest News about Era Infra Eng See previous management interviews See what other Experts & Brokerages are saying about Era Infra Eng Era Infra Eng BSE | NSE 30/05/12 Are Mutual Funds betting on Era Infra Eng?

Era Infra Engineering has reported a sales turnover of Rs 814.19 crore and a net profit of Rs 59.06 crore for the quarter ended June 2010.
 
For the quarter ended June 2009 the sales turnover was Rs 707.98 crore and net profit was Rs 96.41 crore.

In an interview with CNBC-TV18, Joy Saxena, Group CFO, Era Infra Engg, spoke about the results and his outlook for the company.

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

Q: You did a fairly decent sales growth of 15%, but more interesting was the distinct 3% point improvement in your margins from 19.7% to well over 21%. What cause this improvement in margins at your end? Is that sustainable?

A: No. Definitely we have done good and first quarter has seen 15% growth, as far as the turnover is concerned. Our PBT (profit before tax) has gone up by 14% and PAT (profit after tax) compared to Q1 to Q1 now, on YoY basis, has gone up by 11.83%.

At the margin front, our EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margins were ranging close to 20%, 19.5% to 20%. In this particular quarter, there were activities, which were more focused towards the infrastructure project directly. Contracts work was better as well as the equipment hiring, if you see, we have done better revenues there. So EBITDA is better because of those two factors.

As far as the trading part is concerned, there was no portion of trading in this quarter. So, overall, the margins have gone up.

Q: There have been some bullish reports on the company, could you tell us what you are guiding for in terms of FY11 turnover and even at an EPS (earnings per share) level?

A: Hopefully, from 2010 to 2011, we will be up by 30-32%. We will have 35% growth for the next two years that is 2011 as well as 2012. That is the number we have in our business plan. The kind of order book we have and execution capability the company is doing at the moment, we are very confident that we will definitely meet the expectations.

Q: As in you will be able to produce a 30% jump in revenues in the current quarter that is the expectation.

A: That is the expectation. Yes, we are very confident that 30% jump will be there.

Q: Rs 4,500 crore in revenue?

A: Broadly yes.