Fedders Lloyd gain more than 6 percent intraday on Monday after the company bags orders worth Rs 107 crore from Odisha Power Transmission Corporation. Speaking to CNBC-TV18, director SS Dhawan said it is a joint venture (JV) with one of the local companies. The company holds a 70 percent stake in the JV and is confident of maintaining margins of around 10-11 percent going ahead. Below is verbatim transcript of the interview:
Q: Could you give us details with regards to Rs 107 crore order?
A: This order is from Odisha Power Transmission Company and this is for the construction of 132 KV sub stations.
Q: Is it a joint venture (JV)?
A: It is a JV with one of the local companies here for getting execution part of the project executed with them.
Q: What is your stake in this JV?
A: We have 70 percent.
Q: What is the margin on this particular project of around Rs 107 crore? In the last quarter your margins were around 9.5 percent and otherwise it has been hovering around the 9.5-11 percent. So, on this particular order will you maintain that 10-11 percent, will it be higher, will it be lower?
A: We will be maintaining that margin.
Q: Could we see more orders coming in from Odisha Power Transmission Corporation?
A: There are orders in the pipeline. We have already quoted tenders in Haryana and now quoting more tenders in Power Grid.
Q: In Haryana, what is the approximate size of that particular order that you’ll have bid for?
A: We have bid approximately for Rs 150 crore.
Q: When exactly will the result of this particular bidding process be announced, the Haryana one?
A: Either this month or maximum next month.
Q: What exactly is your total order book post this Rs 107 crore order that you have got in from Odisha?
A: It is about Rs 600 crore.
Q: Is there around Rs 150 crore in the pipeline from Haryana as well?
A: Yes.
Q: Any guidance for this year, in FY14, since you are September-ended company, you did around Rs 1160 crore, it was looking quite good in the first quarter, you did around Rs 330 crore, what kind of guidance do you expect for FY15?
A: I think we will do well.
Q: Could you give us a rough number around 10-20 percent or something in terms of guidance?
A: Yes, we are trying even more but let us hope for the best.
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