Current order book stands at Rs 5400cr: ARSS Infra

In an interview with CNBC-TV18, Sunil Agarwal, President and CEO, ARSS Infra, gives more details.ARSS Infra has bagged an order worth Rs 105 crore.

Agarwal said that with the with the addition, the balance order book position, stands to Rs 5,400 crore, which will have to be executed in a period of 24 months. "We have crossed already Rs 860 crore of top-line up to this quarter. Going forward, we are looking at the same growth of 60- 65%," he elaborated. Below is a verbatim transcript of his interview with CNBC-TV18's Reema Tendulkar and Ekta Batra. Also watch the accompanying video. Q: After this order, where your order book will currently stand at? From this order, in particular, how much revenue will accrue in FY12 and then FY13? A: Adding this new order, the balance order book position, which has to be executed, stands to Rs 5,400 crore. This order will have to be executed in a period of 24 months. Regarding this top-line, we have crossed already Rs 860 crore of top-line up to this quarter. Going forward, we are looking at the same growth of 60- 65%. Q: Can you just tell us he amounts of orders you are possibly bidding for, or what is your potential revenue inflow, or order book inflow possibly in Q4 and Q1 of FY12? A: Currently, we have bided for around Rs 10,000 crore of order, where the results are awaited. We are definitely adding around Rs 2,000-2500 crore of order in Q1 quarter of 2011. Adding this, total order book position will be standing somewhere around Rs 7,500-8,000 crore. Q: Based on your execution, in terms of a quarterly basis, you have done around Rs 300 crore in Q3FY11, what is your expectation for Q4, once execution picks up? A: Rs 302 crore was executed in the third quarter. This was slightly depressed due to prolonged monsoon in the eastern part of the country. Going forward, we will have same growth, what has been historical last five-seven years. Q: All your order books, the ticket size is currently of a smaller size. Now that you are bidding for such large orders, you spoke about Rs 10,000 crore, have you increased the ticket size of or orders? A: The company has increased the ticket size from Rs 50 crore to minimum of Rs 100 crore. We are also going to make our supermega project for BOT and PPP modes also. Recently, we are bidding for around Rs 1,700 crore of project in Orissa. It is under BOT. Q: Have you tied up with anyone for this Rs 1,700 crore BOT project? A: Yes, we are in talks with two-three companies from abroad, definitely we will be tying up. We have international partner, they are also interested. Q: And when will you hear about this, whether you won the order or not? A: By April end we will be getting the results. Q: And what is your margin profile then on these big size orders that you are possibly bidding for? A: We are very particular about the margins. You can see our historical background and our background from last ten years, we are very particular about the margins. We are not bidding any project very aggressively. The margins are always maintained with a PAT of 8% to 15% somewhere in between. Q: Your Q3 FY11 margins declined on a year-on-year basis to around 13% versus 19%. A: That was slightly depressed due to interest rate, which we add some new capital equipment. But in long-term, this one will be matching in the same way, it will not go down. But this has decreased due to we have added some capex. If you see the EBITDA, the EBITDA has gone up by 3%.