See FY12 sales around Rs 2000cr: Diamond Power

In an interview to CNBC-TV18, Amit Bhatnagar, managing director of Diamond Power Infrastructure says, the company expects to end FY12 with sales of around Rs 2,000 crore, an increase of around 30%.

He further says, current order book is around Rs 1,900 crore. Below is the edited transcript of his interview with CNBC-TV18's Reema Tendulkar and Ekta Batra. Also watch the accompanying video. Q: We understand that you won orders worth around Rs 48 crore for power transformer. Can you just take us through when you start executing this? When would it start showing in the P&L for the company? A: After a lot of efforts, we have now been able to put power transformer facility in place and commence production; 108 transformers is very good number. Average cost of a transformer is around Rs 50 lakh. This is to be executed in the next three months. This will straight add to our top-line in this quarter itself. Q: How many power transformers is your manufacturing unit capable of producing? A: Our capacity is 10,000 megavolt-ampere (MVA) per annum. The orders, which we have got now, are just around 400 MVA. We have huge capacity. We are expecting that in the next three-four quarter we will be able to book orders of a least 4,500 MVA. That is a very good number. Around Rs 400 crore worth of orders are in the pipeline for the power transformers. Q: How exactly FY12 could possibly pan out for you, considering that FY11 saw a bump up of around 70%? A: We should end FY12 with around Rs 2,000 crore, an increase of around 30%. Q: What would FY13 come on stream, once you get a significant chunk even from the power transformer space? A: We are looking at a growth of 35%. Q: What are the margins in the power transformer business? A: Margin is approximately 11-12% on EBITDA basis. Q: Besides the power transformer business, what sort of orders are you executing and in which segment would that be? A: We have an order book of around Rs 1,900 crore. The major orders are in the transmission EPC business, conductor business and the power cable business. We will be adding substantial revenue going forward in the next financial year. Q: Could you walk us through your plans with respect to wind power? A: We have invested in 6.3 megawatts wind generation capacity in Kutch. That should go on stream by March 15. Q: How do you plan to scale up the wind power business? What benefits will that provide you all in FY13? A: Not as of now because this will get commissioned on March 15. Next year, our power bill will get compensated. We will add around Rs 15 crore to our top-line in terms of saving of power bills. Also, we will get good depreciation cover. So that would help us to save tax. Q: How exactly are you placed on the capex front? Any sort of capex which we can expect from the company going forward to expand capacity to cater to the.. A: We are in the process of fixing up our capex plan. We hope we will come out with something in the next two months or so. We are thinking in terms of expansion in the middle voltage and the conductor segment. We will be coming out and telling the investors about what we have, but not anything before March 31.