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Jul 26, 2013, 04.14 PM IST | Source: CNBC-TV18

Kalpataru looks to sustain margins on order book visibility

In an interview to CNBC-TV18 executive director Manish Mohnot expects the company’s performance to be sustainable going forward based on the current order book visibility.

To a great extent rupee depreciation is an advantage from a long run perspective

Manish Mohnot

ED

KPTL

Kalpataru Power Transmission Ltd reported a standalone net profit of Rs 34.67 crore for the quarter ended June 30. As on June 30, the company has a consolidated order book of over Rs 7,300 crore including new orders worth over Rs 1130 crore received during the April-June quarter, said the company's press release.

Also Read: Tata Power eyes local acquisitions

In an interview to CNBC-TV18 executive director Manish Mohnot expects the company’s performance to be sustainable going forward based on the current order book visibility.

On the company's plans for the current financial year, he said: "From an annual basis, we have planned a growth of closer to 20 percent on a standalone basis and on a consolidated basis again in the same range of 20-25 percent."

The company's property in Thane is ready. It has received the occupancy certificate as well. Adding to this Mohnot said: "We are talking with various players for both lease as well as selling options and we expect to hear something in this quarter or the next."

Below is the edited transcript of his interview:

Q: Let us start with your EBITDA performance because that looks quite good, even the margins have improved to 9.3 percent. Is this performance sustainable going forward?

A: For the current year the next few years we believe that this performance should be sustainable because the current order book which we have gives us visibility that we should be able to achieve this margin going forward for the next couple of years at least.

Q: So the woes of the power sector and its inability to find buyers will not impact transmission companies, you still think that there will be enough investments and use of your lines?

A: From Kalpataru Power perspective our current order book has closer to 60 percent orders coming from the international market so the domestic markets impact while it would be there, it would not be significant for us from margin as well as revenue perspective.

Q: If it is 60 percent external how does the rupee depreciation hurt you or gives you an advantage?

A: To a great extent it is an advantage from a long run perspective, from accounting perspective sometime it hurts but from a long run perspective it is a big advantage for us.

Q: So what might you end the year in terms of growth, will this 27 percent be a quarterly tick?

A: From an annual basis we have planned a growth of closer to 20 percent on a stand alone basis and on a consolidated basis again in the same range of 20-25 percent.

Q: What about the monetisation of Thane land, if you could give us some more details on that?

A: The property is ready; we have already got our occupancy certificate. We are talking with various players for both lease as well as selling options and we expect to hear something in this quarter or the next.

Q: What is the preferred option?

A: It depends on what price levels we get so it could be either of the two.

Q: So what ballpark number can we look at in terms of that property valuation going by the current rate?

A: Depending on the option the numbers could be very different because we are looking at option of selling and lease also.

Q: If we assume selling is an option then what would be the current ballpark number?

A: Since discussion is going on with few players I would like to keep that number confidential as of now.

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