Elecon bags new gearbox order, says may miss export target

Jain, however, is concerned that the exports target might be missed due to weakness in European markets.Below is the verbatim transcript of Rajat Jain’s interview with Nigel D'Souza on CNBC-TV18.Q: Second big order in the last ten days odd. Rs 225 crore order give us some details what is the timeframe that you expect to complete this order, what are the margins, what are the working capital requirements?A: We are thankful to the government for giving us this order. This is on the back of the order which we got on 29th from Mazagon Dock, so the cycle remains similar for both the orders. It is basically three to five years. The profitability margins are similar on both the orders. So, it is good. Q: What does this take your total orderbook to and also could you break it up for us in terms of material handling equipments and also your gear box? A: For orderbook basically for gear business now stands at around Rs 750 crore which includes this Rs 525 crore worth of order for marine gears we have received in last 10 days. For Elecon EPC that is material handling business the orderbook is around Rs 900 crore and Rs 725-750 crore is for gear business. Q: On gear business you get higher margins I believe?A: Yes. Q: That is in the range of around 20-22 percent?A: Yes it is in the range of 20-22 percent.Watch video for more...