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

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.