A Jyoti Ltd subsidiary bagged a hydropower order worth Rs 423 crore, of which the company’s share in the order is worth just Rs 100 crore, says Ajay Kamdar, Chief Financial Officer, Jyoti Limited.
The Gujarat-based hydro turbines and generators manufacturer's JV with Megha Engineering & Infrastructure has won a 5-year deal from Narmada Nigam for EPC of civil, electro-mechanical and hydro-mechanical works including operations and maintenance for Saurashtra Branch Canal Project in Mehsana district.
Below is the verbatim transcript of Ajay Kamdar's interview with CNBC-TV18's Reema Tendulkar.
Q: Can you walk us through this order win, what will the margins be; B: the timeline of execution and C: what would it take your order book to?
A: This Rs 423 crore order is a composite order both of our construction company as well as ourselves out of which we would be sharing to the extent of about Rs 100 crore because we are manufacturing the equipments for that particular project.
The second issue would be that the margin would be slightly better because currently we are going for the better contribution margin only because of the new products, whatever we are taking and since revival of the economy as well as this particular segment things are looking up.
Q: So for you, it is only Rs 100 crore worth of revenues, it is for the consortium that Rs 423 crore is?
A: Yes.
Q: When you say that margins are being better can you give us a ballpark range of margins?
A: It is very difficult to say, at this particular moment of time because these projects are normally go on for two to three years time. So it depends on how things are panning up over a period of time.
Q: And what is order book currently at?
A: It is about Rs 900 crore.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
