Expect 15% topline growth in FY12: Man Industries

In an interview to CNBC-TV18, RC Mansukhani, group chairman, Man Industries Limited talks about the latest developments in his company and sector. He also outlines the road ahead for the company in FY12.

Below is an edited transcript. Watch the accompanying video for more. Q: In December, you indicated that the company bid for project orders worth Rs 1,000 crore. Has there been any conversion of these orders? Could you give us a sense what the order book currently stands at?
A: At the beginning of the quarter it was around Rs 1,500 crore and the last time I quoted that we bid around Rs 4,000 crore. Part of it is converted in the order and partly it is going to get converted in the near future. This is an ongoing process to bid in the international market. Right now as well USD 1 billion bids are there and the success rate depends on your primary supply, your pricing and a lot of other parameters. Q: For this Rs 4,000 crore in terms of a bid, how much is partly converted and how much is still pending?
A: We got one order from Bangladesh which is almost more than Rs 600 crore. It is a single order where we have signed the contract as well. We are going to start production next month onwards. Some other bids are there in the international market as well as some domestic bids which are under evaluation and hopefully it will be converted in the future. Q: Could you tell us a little more about this USD 1 billion order or any other orders that you are bidding for currently?
A: No, USD 1 billion is an approximate figure which we already bid in the international market. There are a lot of bids, and in some bids we have a good position to convert it to an order in the coming weeks and months. Q: Where exactly are you bidding for these possible orders?
A: This is mostly in the Middle East and Asia. Q: Break up the percentage for us?
A: It is very difficult to say but mostly Middle East we have seven or eight countries where we have presence and the quoting process is going on for the bids out there. Q: We have seen a significant softening in the raw material prices in the past maybe two to three months. That should benefit your operating margins. What are you hoping to end the year with March of FY12 in terms of an operating margin performance?
A: I can say that the operational margins will be a bit better than earlier and as usual the topline growth is there and will continue. The softening of raw material over the last three four months because of weak international markets will have some benefit in the near future.