The recent order bagged by the company is very unique and first-of-its-kind in the world says KK Singh, CMD, Rolta India.
Rolta announced that it has been awarded a prestigious 3D City Modeling contract by a major Middle-East country. Valued at over USD 25 million, this is one of the largest and most comprehensive projects of its kind ever undertaken.
This order will help in meeting the challenges of town planning, infrastructure development; environmental management etc for the customer says Singh.
The order execution will happen over two years and the company is hopeful of getting many more order after successful execution of this order. "We expect millions of dollar worth of orders to follow-on after this order is successfully executed," says Singh.
The company expects 38-40% EBITDA margin on the order.
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Below is the verbatim transcript of his interview on CNBC-TV18
Q: Can you take us through this order that you bagged today and where does it take your total order pipeline now?
A: This is a very unique order which is for 3D City Modeling. This is the first order of its kind in the world. So this is again validating our intellectual property (IP) strategy, which allows us to use our IP and comprehensive high-end services. This will be able to meet the challenges of sophisticated analysis and stimulation of town planning, infrastructure development, environmental management, homeland security and emergency response for the customer.
This is an order which is being looked at and there are various countries around the world especially in Middle East, which are looking to follow this model. We expect millions of dollar worth of orders to follow-on after this order is successfully executed.
We will be able to execute this over a period of next two years or so. Our pipeline certainly gets enhanced by this and
Q: What kind of margins will you enjoy on this order and as you said going forward, you will have a lot many orders of this kind, what will be the margin profile of these orders?
A: Typically because these orders involve the IP as well and the technologies in our services, we get about 38-40 percent EBITDA margins. Going forward also we believe those margins will be sustained.
Our technologies make us cost competitive for our customer since any other competitor would have to buy these technologies. So, this enables us to have better margins on the project.
We are certain that this will be a model order for many customers who are looking at execution of this order.
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