BGR Energy has bagged a significant order worth Rs 1,700 crore from TRN Energy today and expects revenue to be generated by next year.
PR Eswar Kumar, chief financial officer of BGR Energy talks to CNBC TV-18 about the details of this order and says the total order book will be about Rs 9,000 crore. Below is an edited transcript. Watch the accompanying video for more. Q: Take us through the details of this Rs 1,700 crore EPC order that you have bagged from TRN Energy today?
A: This EPC order is from TRN Energy to set up two thermal projects of 300 megawatt. This is for a location at Nawapara in Chattisgarh. The total order value is about Rs 1,700 crore having a foreign exchange component of USD 189 million .
The project is to be executed over a period of 29 months for the first unit and 32 months for the second unit. We expect to have an EBITDA margin of about 10-11% for this order. Q: By which quarter will activity begin on at least part one of this unit and is 10-11% comparable with your existing margins or is it higher or lower?
A: It is comparable with our existing EPC projects and both the units will come in simultaneously. We expect revenue recognisation coming from the next financial year which is 2011-2012. The fuel linkage and environmental clearance is in place for these projects so we do not expect any difficulty in the execution. Q: What does this take your total order book to now?
A: The total order book will be about Rs 9,000 crore. We are waiting for the NTPC order to commence. With that it will be substantially higher.
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