After having seen an order inflow worth USD 1.7 billion, which is higher than the company saw in first half of the year, Nikhil Sawhney, vice chairperson & managing director, Triveni Turbines, says the company has now started focusing on the export market.
“We currently have an installed basin over 50 countries and we aim to grow that with proposals out in more than 70 countries already. We believe that may take another year or so for the domestic capex cycle to rebound and make an impact on our turnover. But our increased focus internationally is what is also reflected through the order intake,” he adds.
Also read: Accumulate Triveni Turbine; target of Rs 66: Dolat CapitalSawhney further adds that the company’s joint venture with GE is likely to do well given its competitiveness in the international market.
Below is the edited transcript of the interview to CNBC-TV18.
Sumaira: In Q3 you have seen an order inflow of about USD 1.7 billion which is actually higher than what you have seen in the entire first half of the year. Can you give us a broad breakup of what these orders look like and how much they will be contributing to your top line?
A: Triveni Turbines is a market leader. We manufacture and supply turbines in the range of 0 to 30 megawatts independently and between 30 to 100 MWs through its joint venture with General Electric called GE Triveni Ltd.
The order intake in Q3 was largely determined by a very slow Q1 and Q2 based on an order inflow for the export market which was highly volatile due to international political upheavals as well as currency volatility.
We believe that for our business going forward, the domestic market which used to contribute upto 80 percent of our turnover as well as order book will come down significantly going forward with our foray into the export market.
We currently have an installed basin over 50 countries and we aim to grow that with proposals out in more than 70 countries already. Going forward, we believe that the domestic capex cycle has not rebounded and we believe that may take another year or so for it to come back and little bit longer than that for it to make an impact on our turnover. But our increased focus internationally is what is also reflected through the order intake.
Reema: So after this strong order win in Q3, could you tell us what the fresh order wins have been so far in Q4 and your JV with GE, that also had an L1 status in two orders, one international as well as domestic, if you could give us an update on that as well?
A: The JV is performing incredibly well, we have a very technically sound and globally recognized partner in GE which puts us at the forefront of this space. We have gotten certain orders and we are extremely confident of further orders in this current quarter. Ofcourse we will be able to provide details of it only when the year ends but we are optimistic on the JV and its competitiveness in the international market.
What we have is a JV which has the best of two companies with an extremely competitive cost base coupled with technology and marketing and branding from GE. So the future for the JV is very strong.
We have gotten very good orders, we are comfortably placed for a good growth next year. FY14 itself based on slower order intake in Q1 and Q2 would lead to a lower turnover in FY14 and FY13. But we benchmark our growth in FY15 versus FY13 and see a growth on that which should be quite a good growth in FY14 itself. Ofcourse the order book is what ultimately gets you there and we are quite confident of achieving that direction.
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