Target is to shoot 100 MW solar power: M&B Switchgears

M&B Switchgears expects its 12 megawatt solar plant to start generating power by July 15, says director Vikalp Mundra. Typically, he says one megawatt generates an annual revenue mix of around Rs 2 crore plus.

Talking to CNBC-TV18, he adds, the company had commissioned 27 megawatt of solar power last year and this year’s target is 100 megawatt. Here is the edited transcript of his interview with CNBC-TV18 Q: What will be the annual pro rata increase in FY14 in terms of revenues and profit? A: You have to understand our business model. We are into the business of putting out solar power plants for ourselves and for others, and this business has performed in the last financial year. You are comparing the old revenue of the corresponding quarter for transformer manufacturing to solar powers which we had set up for our investors. So we had set up around 27 megawatt in the last financial year. For FY14, we already have order book of around 30 megawatt which we have to commission till September 13 and we have a target of crossing more than 100 megawatt in FY14. Q: How much will you generate from your own solar power, and how much revenue are you expecting from solar power generation? A: Till now, our 2 megawatt plant is running from last one year and by July 15 our own 12 megawatt will also start generating power. So typically, one megawatt generates a revenue mix of around Rs 2 crore plus a year. Q: Can you give us some full year numbers because last year you ended with an EPS of about Rs 0.5 and for the full year FY14 what can the market expect in terms of turnover and EPS? A: Last year we had commissioned 27 megawatt of solar power and this year our target is to shoot 100 megawatt. Q: What are you expecting by way of an earning per share growth? A: It will not be correct if I quote any number, this is the megawatt that we can achieve, this is our target. Q: So it could be somewhere around Rs 200 crore but we won't know how much of that would translate into your EBITDA and profit so can you give us some detail on that? A: I can say that this trend of profit will be in the same direction what you have seen in the result. We will maintain the same trend.