Moneycontrol
Last Updated : Jun 07, 2012 05:04 PM IST | Source: CNBC-TV18

M&B Switchgears eyes 40-50% top line growth in FY13

Vikalp Mundra of M&B Switchgears expects the solar business to boost the company's bottom line and is bullish on its model named UJAAS. It targets around 40-50% growth in the top line in FY13.


Solar power producer M&B Switchgears recently issued 249 renewable energy certificates (REC) by the national load dispatch center.


One renewable energy certificate is valued at a price band of Rs 9,300-13,400 by CERC, Vikalp Mundra, Director, M&B Switchgears told CNBC-TV18. It commenced trading on two power trading exchanges Indian Energy Exchange (IEX) and Power Exchange India Ltd on Monday.


At 14:42 hrs the share was quoting at Rs 98.85, up Rs 8.85, or 9.83%. It was trading with volumes of 372,032 shares, compared to its 5-day average of 80,767 shares, an increase of 360.62%.


Meanwhile, he expects the solar business to boost the company's bottom line and is bullish on its model named UJAAS.


"In our model named as UJAAS we are putting up a solar power plants for others. That business is picking up very well, which is having very good tax advantages like 100% depreciation." It targets around 40-50% growth in the top line in FY13.


Below is the edited transcript of Mundra’s interview with CNBC-TV18. Also watch the accompanying video.


Q: Can you give us any of the recent announcements and what their impact could be? The company issued 249 Renewable Energy Certificates (REC) by the national load dispatch center. Can you tell us what this means in terms of money?


A: One renewable energy certificate is valued at a price band of Rs 9,300-13,400 by CERC. Recently we had traded on Rs 13,000 per REC on 30th May.


Q: In FY12, we saw revenues of about Rs 34 crore. What can we expect in FY13? Do you see a significant ramp up in your revenues?


A: The solar business adds more to the bottom line rather than the top line because it’s all capex, but there will be a decent rise in the top line also.


Q: I didn’t get you; you said that in solar energy you add more to the bottom line?


A: That’s right because this is a capex investment, putting up a power plant is a capex investment. So, it doesn’t add into your top line much. In our model named as UJAAS we are putting up a solar power plants for others. That business is picking up very well, which is having very good tax advantages like 100% depreciation.


We are getting very good responses from the investors throughout the country for joining hands with us and putting up a solar power plant in product name called as UJAAS, this UJAAS will add upto into top line.


Q: What is your estimate in terms of top line and bottom line for FY13?


A: You can say that there will be around 40-50% growth in the top line.


Q: Your profit estimate?

A: Profit estimate will also be decent, I cannot predict right now.

First Published on Jun 7, 2012 02:28 pm
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