Expect fresh orders worth Rs 1500 crore in FY17: NCC

NCC is hoping to garner fresh orders worth Rs 1000 crore in FY17, with an eye on increasing the road projects, says the company's Executive VP - Finance YD Murthy.

In an interview with CNBC-TV18, Murthy said the company is bidding not only for NHAI orders but also road projects at state government level. "We would be looking at hybrid models of build-operate-transfer (BOT) projects," he said.

Murthy also expects their international business to do well this fiscal.

NCC is a billion dollar multinational infrastructure conglomerate, which is into various infrastructure segments like roads, housing, irrigation, railways, power etc. Below is the verbatim transcript of YD Murthy's interview with Ekta Batra and Reema Tendulkar on CNBC-TV18. Reema: First if you could give us an update on the Vijayawada Metro Project, when are the bids expected to open because we understand it could be very soon and what is the total size of the project? A: We are not participating in that I have no idea about that. Ekta: Just wanted your thoughts with regards to bids taking off in the road projects because we heard a lot of anecdotal evidence, cement dispatches which have increased seeing that roads have really picked up in the past couple of months in this fiscal particularly. Are your thoughts the same, are you bidding for more road projects? A: Absolutely, we are looking at the road sector quite positively; one is the cash contract that we are bidding not only at the National Highways Authority of India (NHAI) level, but also at various state government levels and also we are looking at the hybrid model positively and planning to participate in the hybrid model of build–operate–transfer (BOT) projects. Reema: So you currently have only one road project which you are executing. You are saying that in the future you would like to increase your exposure to road projects? A: Yes, absolutely. Ekta: How much are you bidding for currently and how much do you have in the pipeline? A: We are expecting to get fresh orders for nearly Rs 1,500 crore in the current financial year and most of the earlier projects have been completed. So the pipeline we have only one UP project which is a Rs 1,680 crore project that execution is going on as per schedule. Reema: Have the losses in your international arm come down or is it expected to come down in FY17? A: Yes, absolutely. There are some losses which was not anticipated, but we got a big road order of road project of Rs 2,200 crore that is under execution and once the project picks up momentum, we are confident we will be able to wipe out the losses.