Got repeat orders from IRB, Raheja Developers: Pratibha Ind

In an interview to CNBC-TV18, Yogen Lal, CEO, Pratibha Industries talks about the latest happenings in his company and sector. He also outlines the company’s future growth prospects for the fiscal year.

Below is an edited transcript of his interview. Watch the accompanying video for more. Q: We understand that you have bagged orders of about Rs 1,400 crore, of that major chunk comes from the DMRC, which is Rs 1,100 crore. Does this include a likely order of Rs 600 crore from the Delhi Jal Board? There was an expectation that you would win an Rs 600 crore infrastructure order from the Delhi Jal Board has that been won too?
A: I am not aware of any such order. I did see a report in the section of press. I do not know of any such order. Q: Where does the order book stand at now after bagging these orders?
A: After excluding the first quarter revenue our order book is poised at around Rs 7,170 crore. Q: So that would up how much from the fourth quarter that would give us a sense of the execution done in this quarter?
A: The first quarter execution is not yet accounted for in this order. The fourth quarter number was around Rs 500 crore. Q: What is the total order book standing at, at this point in time and how does it compare with March 31 level?
A: The current order book is at Rs 7,170 crore levels. If you compare it to March 31, it was at somewhere around Rs 5,600-5,650 crore. Q: So the order booking is ahead of the order execution at this stage?
A: Yes, if you look at in terms of our previous year, our annual revenue for the previous year was around Rs 1,676 crore and we have replaced around Rs 1,500 crore profit, so it’s a healthy start for this fiscal. Q: How would margins pan out in the new orders? Your operating margins actually improved in the last reported quarter?
A: Yes, the DMRC project which we have got, in fact all the three projects are repeat order from our existing customers and particularly from the Delhi Metro Project we expect the margins to be slightly better because it entails the sharing of resources on our existing projects side where the margins should be better. Q: You are saying that your total run rate last year was Rs 1676 crore and you have made up Rs 1500 crore in just one quarter. This is at variance with what we hear on macro numbers that infrastructure is doing badly, capital goods are not expanding, especially, the capital goods index in that showing a particularly poor performance, infrastructure index has got nothing to write home about. Is it that you have been able to do better at a micro level or is it that things are turning around and that orders are coming in?
A: There are certain opportunities and we happen to be in those segments like the Delhi Metro. As I said the other two orders one from IRB that is the real estate developer in Delhi and from Raheja’s in Mumbai are again repeat orders. These are also based on our execution capabilities and our execution skills that client’s have reposed their confidence. In a government order of course it goes to the lowest bidder, but in the private sector deliverance is what matters and that is why clients have reposed faith in us. Q: How is the money situation? Are you able to raise money more cheap than last year or have things gotten tighter?
A: It’s not really become cheaper significantly than the last year maybe 25 basis points here or there, but for this project there is no dearth of funds.