Elecon Engineering surged 13 percent today. The company has won significant orders recently and even the pipeline has been looking quite strong.
Discussing its plans ahead, CMD Prayasvin Patel said the company has received orders worth Rs 61 crore this year and there have been live enquiries worth Rs 4,230 crore. Out of which the company expects to get about Rs 200-250 crore worth of orders shortly.
“Things are looking up this quarter. If the situation continues this way, the whole year is going to be fairly good,” he said.
Below is the transcript of Prayasvin Patel's interview with Ekta Batra and Reema Tendulkar on CNBC-TV18.Reema: We understand that the company has won significant orders recently as well as the pipeline is looking quite strong. Can you walk us through what the order wins have been?A: We have received orders worth Rs 61 crore this year and there are enquiries worth Rs 4,230 crore out of which we are expected to get about Rs 200 crore-250 crore worth of orders shortly. Ekta: Can you tell us from whom these orders would be and when would you begin execution and when would you hear about the Rs 200 crore incremental orders as well?A: It’s a very competitive situation. I would not be able to reveal that but I would say that they are expected very shortly and things are looking up this quarter as well as we hope that if the situation continues this way, the whole year is going to be fairly good.
Reema: You had earlier spoken about your subsidiaries breaking even, do you still hold on to that guidance. What is the outlook on the subsidiaries front?A: The subsidiaries are performing reasonably well and we are hoping that by the end of the year there would be a reasonable surplus.Ekta: How is the working capital situation? Has that improved especially for your material handling equipment (MHE) segment? We understand that majority of your clients were in the public sector undertaking (PSU) space, so there were some working capital constraints in that?A: Things have not much improved in that area but however the management is taking steps to improve the situation by infusing more funds into the system.Ekta: What would this fund infusion entail?A: This would be by further borrowings which the company would do to bring in more capital.
Reema: Another order that you would be winning as well as expected to win coming in on higher margins?A: Yes, I would say that the margins are reasonably healthy.Reema: What would they be?A: It would be difficult to quantify them but I would say that they are reasonably healthy, which under the present circumstances and considering the market scenario, they would give us fairly good results.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
