Moneycontrol
Last Updated : Apr 01, 2015 04:16 PM IST | Source: CNBC-TV18

March-end order book stands at Rs 5,000 cr: Kalpataru Power

Kalpataru Power was buzzing in trade Wednesday after the company won an order worth Rs 835 crore. In an interview to CNBC-TV18, Manish Mohnot, JMD, Kalpataru Power Transmission shares the details of the order and the road ahead.


Kalpataru Power was buzzing in trade Wednesday after the company won an order worth Rs 835 crore. In an interview to CNBC-TV18, Manish Mohnot, JMD, Kalpataru Power Transmission shares the details of the order and the road ahead. 


Below is verbatim transcript of the interview:


Q: Can you give us some more details about this order win of Rs 835 crore. What is the total size of the order wins in this quarter, in January and March so far and what would it take your order book to?

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A: We got Rs 835 crore of orders from domestic and international clients. Our international client is Africa based which is an order of close to Rs 300 crore, the balance Rs 535 from domestic clients which includes PGCIL and few orders in the railway sector.


Our current order book is in the range of Rs 5,000 crore as of March end and for the quarter whatever order we have secured is Rs 835 crore only. However, besides the current order book we are L1 in orders closer to Rs 2,000 crore which we should get over the next few months.


Q: You were looking at bettering your margins. Your margins have been fluctuating somewhere between 6-9 percent. Can you give us a sense of the margins on this order?


A: Our margins not only for this year but for the last few years have been in the range of 9-10 percent on an annualised basis. Quarterly it keeps on fluctuating depending upon the seasonal reasons more than anything else. We continue to stay at margins in the range of 9-10 percent as far as operating margins are concerned.


Q: What are your margins on international business and what would be the margins on the domestic business?


A: All of them range between 9-10 percent depending on the project it might be different but otherwise the average margins would always be in a similar range.


Q: Given the fact that raw material prices have come down do you think you would enjoy better margins on new projects. If you win these L1 orders, would the margins be higher or not really?

A: Majority of the orders have price variability clause by which even increase as well as decrease is not significant benefit to us. There would be some small increase on fixed price contracts but it is not going to be very significant to change this 9-10 to a different number.

First Published on Apr 1, 2015 03:54 pm
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