See revs at Rs 580cr by yr-end: Transformers & Rectifiers

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See revs at Rs 580cr by yr-end: Transformers & Rectifiers

Transformers & Rectifiers has reported a net profit of Rs 10.21 crore in Q2 as compared to Rs 9.56 crore it did in the same period a year ago. Revenues came in at Rs 114 crore compared to Rs 88.50 crore it declared in September 2009. In an interview with CNBC-TV18, Jitendra Mamtora, MD of the company gave his perspective on the road ahead.

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Transformers & Rectifiers has reported its numbers for the quarter-ended September 2010. It reported a net profit of Rs 10.21 crore as compared to Rs 9.56 crore it did in the same period a year ago. Revenues came in at Rs 114 crore compared to Rs 88.50 crore it declared in September 2009.

In an interview with CNBC-TV18, Jitendra Mamtora, MD, Transformers & Rectifiers gave his perspective on the quarter gone by and the road ahead.

Below is a verbatim transcript. Also watch the accompanying video.

Q: If you can take us through the margin picture and how is sales growth looking from hereon for the rest of the year?

A: The margin growth if you talk in terms of percentage, EBITDA margins and PAT are going to dip a little bit as compared to last year. But the order book position is going to be better and better. We have as on today orders of Rs 394 crore and something like Rs 180 crore orders are in the pipeline.

Q: You were going to get a pre-qualification certificate from Power Grid. That is what you told us last met has that certification come through?

A: I want to break one news to you although it is posted on the BSE site. We have already signed an MoU with one of the leading manufactures of transformers in Europe for supply to PGCIL (Power Grid) - 765 KV transformers. So that is big news for us.

We are going to take part in the next tender which has already appeared and which is due on December 10. So we are going to participate in that tender and hopefully we are going to win that tender.

Q: What is your estimate? If you look at L1s in the various orders that are in the market, what do you think your order book will be by the end of March 31, or 12 months from now and therefore what kind of revenue growth can you project?

A: By March what I can tell you today is the order book which is going to remain as on March 31, 2011 will be something like Rs 450 to 500 crore.

Q: This time around the margin picture has not been very encouraging and you yourself are pointing to some pressure. Can it dip below that 15% EBITDA margin?

A: EBITDA margins in the next two quarters is going to remain or if you take the average of the whole financial year 2011, is going to remain between 13% & 15%. So that is what we are expecting to happen.

The orders are there but there is stiff competition. I do not know why nobody is able to answer that question. Inspite of so many orders flowing in people are still afraid of not getting the orders. Everybody is afraid and everybody is trying to quote lower prices.

Q: If you could give us your margin picture. You said your order book will improve to Rs 450 crore. So what is the revenue that you are expecting in full year FY11 and more importantly in FY12?

A: Revenues will be between Rs 560 and Rs 580 crore.

Q: What has been the sales volume and realizations for the quarter?

A: The sales volume for this quarter is Rs 114 crore.

Q: In sales volumes?

A: I do not have those figures. The MVA is 2400.