Bajaj Electricals' engineering and project business unit bagged four new orders aggregating to Rs 602 crore. In an interview to CNBC-TV18, joint managing director Anant Bajaj said billing for the new order wins could start over next 18 months.
Four orders have been secured for transmission lines in Tamil Nadu and West Bengal from Power Grid Corporation of India (PGCIL) and West Bengal State Electricity Transmission Company respectively; and rural electrification work at Bihar from North Bihar Power Distribution Company and South Bihar Power Distribution Company respectively, he said.
The company’s current order book stands at Rs 2,200 crore.
Below is the verbatim transcript of Anant Bajaj’s interview with CNBC-TV18’s Latha Venkatesh and Ekta Batra
Latha: Just take us through the order book size itself at this point in time, when did you win this Rs 600 crore, what does it take your overall order book to?
A: We have got Rs 602 crore of new order book in which two of them have to do with transmission lines and two of them have to do with RE which is rural electrification. We got one order of Rs 26.05 crore from Power Grid Corporation of India Limited (PGCIL) and the second one is order from West Bengal which is for Rs 40 crore; these both are in transmission lines.
We have two RE projects from Bihar, one is from the North Bihar Power Distribution Company and the other one is from South Bihar Power Distribution Company. One is Rs 314 crore and the other one is Rs 220 crore. With that our order book goes in the vicinity of around Rs 2200 crore. It is a good order size to have.
These are projects which are resultant out of the various tenders we take part. So, it is always difficult to say which one can convert into an order from tender stage. Roughly at this stage for RE projects between 10-12 percent of tenders are converting in case of power distribution and RE jobs. In the case of transmission line it is little closer to 8 to maybe at best 10 percent and they are a little longer timelines to convert.
Ekta: Can you just tell us when will execution of these projects begin and hence when would it begin to show on your P&L?
A: In next two to three months, we should be able to mobilise the new sites. So, to that extent billing if you say would start well within the fourth quarter and realistically we look at completing it well within 18-24 months. Well within the timelines of the project. To that extent, we have well planned execution setups now so all our new projects which we bought since 2013-14 financial year have all been well within or in fact even in some cases ahead of schedule.
Execution has become the key way of working in the E&P business. That is why a lot of the already good results are showing in terms of the improvement – we are still not out of the minus part but the fact is that all the issues related aspects are over.
Latha: How is the pick up been in the consumer durable segment, what kind of revenues do you think you will do say either this quarter or full year for lightning and for consumer durables?
A: Both the segments as we have been saying from the beginning we are looking at that 15 percent kind of growth levels. Currently from the looks of it, it is going to achieve that because with this time October being a Diwali month, September will be a good ending of Q2 and to that extent both lighting segment and consumer durable is starting to already see the trend upping.
Latha: Are you already seeing purchases?
A: Now that Pitr paksha which is that month when people don’t buy much in India that is got over to that extent all the buying pattern has already begun, marriages are also going to start. So, that season for buying in a way has already started and we do have a few interesting products which are on the lineup coming up in September. So, that should clearly help the market get excited for the season coming up.
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