The stock price or TRF Ltd today surged up on back of the news that the company has won an order worth Rs 360 crore. The company received order from Nabinagar Power Generating Company Private Limited.
Manufacturer of industrial supplies TRF bagged order worth Rs 360 crore from Nabinagar Power Generating Company Private Limited.
Speaking to CNBC-TV18 managing director Sudhir Deoras said that the company closed financial year 2012-13 with order book of worth Rs 1,000 crore.
"We are hoping that we will get one-two big orders in current financial year, which should be okay for us for the coming year. Revenues in FY14 will be better than FY12-13," he added.
Below is the verbatim transcript of his interview on CNBC-TV18
Q: Could you provide us little more details about this about this Rs 360 crore order that you have won? What margins has it come at and what would your total order book stand at now?
A: Let me tell you that the project orders are difficult to come by since last two years, so it is good news that we got quite a large order. We normally do not comment about margins what we will get, but I would say it has got a reasonable margin. This comes virtually in the last week of March and we ended up booking orders worth about Rs 1,000 crore in the financial year’12-13.
Q: Are you bidding for new orders? How will FY14 look in terms of order inflows?
A: We continue to bid for the new orders, but not many new greenfield projects are coming up. National Thermal Power Corporation (NTPC) has announced that they are going to come out with three-four major projects and we hope to bid for those projects.
Q: How large are these and at what margins are you likely to bid for?
A: We normally work in Coal Handling Plants (CHP) in these power plants and these orders could be anywhere between Rs 350-500 crore.
Q: Your interest cost has seen a very sharp increase in the last quarter. Where does the debt currently stand at and any plans to deleverage your balance sheet?
A: The real reason has been that collections have not been good because of the money market situation, some of the customers have not really been paying, and some of the projects got delayed or little stuck. A lot of our money gets spent on these projects and overall our debtors have gone up and that has impacted badly where our interest cost concern.
Q: What would the total receivables stand at? The last update that we had, put your gross debt at Rs 560 crore, has it changed a lot from that figure?
A: Yes, we hope that in this quarter it will come down by at least about 10 percent or so.
Q: Do you have any deleveraging plans?
A: No not really.
Q: The other concern has been the automotive business because the performance over there has been a bit disappointing, it is also loss making. Could you provide us if there is any more details on that and if a turnaround is likely?
A: The situation on automotive application business if you look at India, the prime mover sales in India in FY12-13 has dropped by about 30-35 percent, so trailer sales have also dropped along with that and that is why the results are disappointing in auto application area.
However, internationally our YORK TEA Limited (YTEA), assets have done quite well, we have grown the market in Australia. We have done very well in Africa also but unfortunately the growth that we are expecting in Indian market hasn’t happened. We have spent our money in establishing new plants for trailer manufacturing and actual manufacturing near Pune, and we are yet to work at capacity utilization levels. But we got good product and good business and we hope that as auto industry turns around, we should be doing well.
Q: In your early assessment FY14, will it still be loss making for the automotive side?
A: No, we should turnaround.
Q: You spoke about an Rs 1000 crore order inflow for the fiscal year gone by FY13. Will FY14 to better than FY13?
A: We hope so because we are starting with a better end of the year order book. Last year when we started our order book was only Rs 1000 crore. We are hoping that we get one-two big orders in current financial year, which should be okay for us for the coming year.
Q: Any revenue guidance for FY14?
A: Not really. We generally don't give guidance but I think it will be better than FY12-13.Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.