Elecon Engineering won an order worth Rs 247 crore on Monday. Prayasvin Patel, CMD of Elecon Engineering says the company’s total order book stands at around Rs 1,710 crore. He expects margins to the tune of 5-7 percent on the order.
Below is the verbatim transcript of Prayasvin Patel's interview with Reema Tendulkar and Sumaira Abidi on CNBC-TV18.
Reema: Rs 247 crore is the order that you have won. Could you tell us the margins on this order exactly, what the total order book will now stand at?
A: Our total order book for the company as a whole is approximately Rs 1,710 crore. Out of which the material handling portion is Rs 1,450 crore.
The margins that we expect would be to the tune of 5-7 percent.
Sumaira: For the nine months of FY14, your turnover has been under Rs 340 crore, while I understand that in the comparable period last year, how have your nine months been and what is the target that you have for FY14 in terms of your turnover as well as your profitability?
A: This year we are expecting that we should be reaching close to the target or the turnover that we had last year because these are challenging times and if we are able to do that, it would be a big achievement. The margins that we have last year, I would presume that it would dip by about one-two percent from the pervious year.
Reema: This year has been challenging but are you expecting a pick-up in FY15, can we expect some sort of a growth come back into the company and any other developments which could propel this growth?
A: We believe that the first six months would be slow for the company but the last six months would see good times.
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