Transformers & Rectifiers sees 20000 MVA order flow in FY12

2816 Investors following Transformers. Share this News with them.

0

Like this story, share it with millions of investors on M3

Transformers & Rectifiers sees 20000 MVA order flow in FY12

In an interview with CNBC-TV18, Jitendra Mamtora, CMD of (India) Ltd, spoke about the company’s results and the road ahead.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » Transformers BSE | NSE 31/05/12 Are Mutual Funds betting on Transformers?

In an interview with CNBC-TV18, Jitendra Mamtora, CMD of Transformers & Rectifiers , spoke about the company's results and the road ahead.

Below is a verbatim transcript of the interview. Also watch the video.

Q: Can you take us through the performance? Your profits were lower compared from year ago levels. You did Rs 20 crore last year and you did Rs 15 crore this year despite the fact that revenues were higher. Is it largely raw material cost and which particular raw material?

A: It is not exactly the raw material. I would say that there is no effect of the raw material prices on the numbers. Mainly the number is because there are some undispatched transformers - the transformers which could not be dispatched in the last quarter because of the fact that the last quarter and the last month March, the inspectors, who come for the inspection of the transformers, were not available as there is a pressure from everyone. So there are lots of transformers which we couldn't dispatch. If you look at the numbers, the production figures are much higher than the sales figures.

If this transformer would have been dispatched, the numbers would have been improved a little bit. Mainly the pressure is on the margins because there is fierce competition as the market perception about the industry is not good.

Q: If your argument is that you have undispatched transformers lying with you then what kind of a sales growth can you forecast for the coming quarter, after all you have a lag of sales that you can record for this quarter?

A: This quarter we will have sales of around 3,500 MVA to 4,000 MVA.

Q: What does that translate into rupees you think? You did Rs 223 crore in the quarter gone by. Would you do much better is what I am asking?

A: There are larger transformers this time. So larger the transformers, the realization is less. So if you put it in the number or the absolute value of the transformers, which are going to be dispatched in this quarter, it will be something around Rs 100-120 crore.

Q: If you can update us on your order book? The industry itself is going through a slightly tough time with low ordering. What are your expectations over the next fiscal? What kind of order inflows would you expect?

A: The total order inflow will be something around 20,000 MVA for us because we are into now 765 KV transformers and 765 KV transformers, two of the tenders where we have participated, we are L1 that itself is 4,000 MVA and there are few more tenders, which are coming from PGCIL and intend to do good there as well.

So out of the six standards, whose results have been declared, we are L1 in two of them and there are more numbers which are coming up in this quarter. We intend to do good there as well.

Q: Just a doubt on what you said before, did you see you will do 120 crore in the current quarter or are you saying you will do Rs 120 crore more than you did in the last quarter which was Rs 223 crore?

A: No, if you look at the performance in the past years, you will see that Q1 is just 10-15% of what you do in the whole year but this year because of the dispatches, which were not effected, we will do about Rs 100-120 crore-not plus what we did in the last one.

Q: On the other side, despite your margins being weak, on the exports and the rectifier side that could perhaps help you support your margins, what kind of margins would you expect in both of those segments in FY12?

A: Rectifier Transformers will be definitely doing better. The margins on the Rectifier Transformers are much higher than the power Transformers and the export market is also good. The margins are good to the tune of - if you talk about EBITDA margins will be more than 20 and in the Rectifier Transformer, it will be more than 25 maybe more than 30%.