CEO AK Lakhotia said recent five orders wins include two strategic orders from government of West Bengal and three repeat orders from its existing clients.
Infra player MBL Infrastructures is hopeful of closing FY14 with revenues of over Rs 1,750 crore and clock profits worth Rs 75 crore.
Speaking to CNBC-TV18 about the latest happenings in the company, chairman and CEO AK Lakhotia said recent five orders wins include two strategic orders from government of West Bengal and three repeat orders from its existing clients. The company expects to earn operational margins of 11-14 percent from these orders.
Below is the edited transcript of AK Lakhotia’s interview with Ekta Batra and Reema Tendulkar of CNBC-TV18.
Q: Could you tell us what the margins on this order would be and of this Rs 500 crore what revenues could we expect in the next fiscal year?
A: These are five strategic orders. Two of them are strategic projects of government of West Bengal, these are very well funded project. Three are repeat orders from our existing customers. We expect margins to be slightly better than our existing margins on these projects. Earnings before interest, taxes, depreciation and amortisation (EBITDA) should between 11 percent to 14 percent and profit after tax (PAT) of 4 percent to 6 percent.
Q: What your current order book stands at?
A: Currently we have 33 orders worth Rs 3,345 crore.
Q: So, at Rs 3,400 crore is almost two times your 12 month sales which will give you strong revenue visibility at least for the next two years, would you continue bidding for fresh orders as well and how would things shape up from here?
A: We will continue to bid for the new orders. It is a good climate to bid for new orders. As usual we have always been very selective into our bidding. We do bid for well funded projects of selected clients and we will continue to follow the same strategy.
Q: In the first half of the fiscal year your revenue growth was 65 percent, can that sustain. What are you expecting to close the year with, FY14?
A: We are expecting FY14 to close with over Rs 1,750 crore with a bottomline of about Rs 75 crore.