IL&FS Engg eyeing more metro bids after Gujarat success: MD

After winning the order for the Metro-Link Express between Gandhinagar and Ahmedabad, IL&FS Engg plans to bid for more metro projects. It hopes to succeed in the metro projects coming up in Nagpur and Vijayawada, the company's Managing Director MD Khattar tells CNBC-TV18. Revenues from this order will start flowing in from the coming year, Khattar says, adding that he expects a 6-8 percent margin from the project.  This is the fourth metro project IL&FS has taken up after two in Gurgaon, and one each in Bangalore and Kolkata. It is receiving several orders in roads as well. Its order book currently stands at Rs 10000 crore. Below is the transcript of MD Khattar’s interview with CNBC-TV18's Reema Tendulkar and Mangalam Maloo. Reema: With this could you tell us what the order book of the company would stand at and would the revenues from this accrue immediately or would you start construction only in FY17? A: As far as the total work order will be there it will be about Rs 10,000 crore for the company and as far as this project is concerned we are just going to start it off. So, I don't think in the financial year we will have much of a turnover. It will come only in the next year. Reema: You said your order book is Rs 10,000 crore? A: Yes, total. Mangalam: What are the margins likely on this order? A: Infrastructure as you see is about 6-8 percent or something is what we always get. So, in this case also we are planning on that. Reema: Would the revenues get split equally in the next two and half years which is the timeline of construction? A: Yes, sure. It will be there. Of course during the last few months it has not been as much as it will be in the middle because it will be a peak and then there will be of course a tapering down. Reema: What would be the order pipeline or the visibility that you have going ahead? A: We are going on and trying and many more jobs are coming not only in the metro but roads and other things. So, we are certainly going to get some more jobs. Mangalam: Can you also tell us after you have won this order what does this order win open the avenues up for, what are the kinds of orders that you will be looking at? A: This will be the fourth metro project that we will be doing. We have already done one in Gurgaon which is completed, one more we are doing in Gurgaon. Then we are doing in Calcutta and also in Bangalore. Reema: Are you bidding for any more metro projects? A: I think so, sure. Mangalam: Could you give us what are the amounts you are bidding for, what is the potential order book? A: As far as metros are concerned now as you know many more cities in India are going in for metro. So, certainly we are also trying and you will see very soon coming in Vijayawada and also in Nagpur. So, we are bidding all there.