New orders to contribute 25% to FY17 profit: Power Mech

Power Mech Projects has bagged orders worth Rs 195.86 crore from Doosan Power Systems India and Alstom Bharat Forge, the company informed exchanges yesterday. In an interview with CNBC-TV18, S Kishore Babu, CMD of the company, said the order is expected to be executed in 33-months time and will contribute to about 25 percent of the company's total profit of Rs 187 crore in FY17, he adds. With this addition, the company's orderbook is now at Rs 3500 crore. The company has also participated in L1 order for Rs 1000 crore, and Babu expects order worth Rs 500 crore to get converted by May 2016. The company could not meet its revenue target of Rs 1500 crore for FY16, owning to a slowdown in the independent power producer (IPP) sector in the domestic market, Babu adds. The company has posted a revenue growth of over Rs 1,400 crore for FY16. With new orders in the pipeline, Babu expects the company to post 10 percent higher revenue growth in FY17. It aims for an EBITDA margin of 14 percent for FY17.