RPP Infra Projects has received an order form Container Corporation of India for construction of pre-engineered warehouse including internal electrification, fire protection and detection system and other allied works at ICD, TNPM, Chennai for Rs 11.2 crore.
The order book for the company currently stands at Rs 780 crore, said A Nithya, whole-Time Director of the company. She expects EBITDA margin of around 13-14 percent on these orders.
She said the company has also tied up with Siemens to participate for a power grid tender in Bangladesh. It is a Rs 600 crore project for which the entire civic portion will be handled by RPP, she said. If the joint venture wins the order then around Rs 75 crore will directly flow into RPP. Moreover, if they get a sub-contract for the same project, then another Rs 75 crore will come into the company, she adds.
The debt of books currently stand at Rs 58 crore.
The company is engaged in infra developments such as civil construction, irrigation etc. Clients include L&T, IVRCL Infra, NTPC and Lanco Infra.Below is the verbatim transcript of A Nithya, Whole Time Director, RPP Infra Projects' interview with Mangalam Maloo & Reema Tendulkar on CNBC-TV18. Mangalam: First thing I like to ask you is what is your order book and what is the EBITDA margin expected on the order book that you have right now. A: Currently our order book is around Rs 780 crore and we are expecting an EBITDA margin of 13-14 percent. Mangalam: Could you also give us a sense of any other joint ventures that you are looking at earlier. You had a joint venture with Hunan Constructions, so any other such partnerships that you are looking at. A: Yes, currently we had joined hands with Siemens to participate tender in Bangladesh. Reema: What is that joint venture with Siemens in Bangladesh. A: In Bangladesh they are doing projects of Power Grid. They already doing projects of Power Grid and they are going to quote another tender for Rs 600 crore for Power Grid in that civil portion is handled by us for which we have JV. We are quoting that tender in a JV partnership with Siemens. Reema: So if it is a Rs 600 crore tender that the JV will participate in what percentage of that come to RPP Infra. A: Directly it is about Rs 75 crore and as subcontract basis it may be another Rs 70-75 crore which is not yet confirmed. Reema: So best case is Rs 150 crore if you win it otherwise for sure you will get Rs 75 crore. A: Yeah, the best case if we win it we will get surely Rs 75 crore and in another case if our rates matches with them then we can get the subcontract from them for another Rs 75 crore. Mangalam: Could you also give us a sense of what the debt on your books is and at the same time we hear that you were looking to renegotiate your interest costs as well, so has anything come by from that. A: No, the process is going on since last year as the year ending process on March, the process is now going on anyway we may renew our interest rates by 7 May it appear and currently our debt in book is around Rs 58 crore.
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