Techno Electric eyes Rs 900cr plus growth in FY12

Padam Prakash Gupta, MD, Techno Electric & Engineering, in an interview with CNBC-TV18's Reema Tendulkar and Ekta Batra, spoke about the latest happenings in his company and the road ahead.

Below is the verbatim transcript of the interview. Also watch the accompanying video. Q: For your wholly owned subsidiary, Simran Power Project, your require equity. How is it being funded? Is International Finance Corporation (IFC) one of the players from which you will be getting in the money? A: Yes. We have another 200 megawatt (MW) in this subsidiary, which has presently 50 MW in operations. The phase I is 125 MW which is funded by Rs 250 crore of equity and Rs 450 crore of debt. The equity of Rs 250 crore is brought by the parent company and IFC. IFC is taking an exposure of USD 15 million, apart from debt of USD 40 million. Q: What sort of capex have you planned? What would be the entire requirement of funds? How will you fund the entire capex? A: It is in two parts. The total is Rs 1,150 crore. The phase I is of Rs 700 crore funded by Rs 450 crore of debt and Rs 250 crore of equity. The Rs 450 crore of debt is provided by IFC along with Standard Chartered Bank and DBS. The phase II of Rs 450 crore will be funded by equity of Rs 150 crore and debt of Rs 300 crore. On debt, we have been talking to the institutions now, where we will achieve the financial closure by June-end. Q: What would be your total debt on books? A: When all these projects are fully commissioned on a consolidated basis, the total debt on books by March-end 2012 will be Rs 750 crore. Q: When will this capacity expansion come on-stream for your wind power? When will it generate revenues? How will your financial performance look like? A: The phase I will be commissioned this month with 26 megawatt (MW) by March-end. Progressively, commissioning another 25 MW will happen by June-end. Commissioning of phase II will be achieved by December-end. Q: How are you doing in terms of Q4? Your net sales were down around 9% to Rs 153 crore in Q3. What could we expect you to end FY11 with? A: FY11 will be more or less like FY10. 2011-12 will have a better performance because of these capacity expansion as well as our new orders of about 250 crore, booked on the EPC side in Q4. Q: What is your total order book in EPC? A: It is presently about Rs 1,400 crore. Q: If your FY12 revenue picture looks better, how much will you do? A: This year, our estimated revenue is about Rs 750 crore as a whole year, which should grow to more than Rs 900 crore next year.