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Last Updated : Apr 21, 2016 11:14 AM IST | Source: CNBC-TV18

Seeing order pick-up from power utilities: Transformer India

Roll out of tenders by Power Grid, NTPC and various utilities have also gone up, says Jitendra Mamtora, Chairman of Transformers and Rectifiers (India).

Orders for power generation equipments have seen a sudden surge due to a strong performance in the power distribution and transmission segment, including NTPC , says Jitendra Mamtora, Chairman of Transformers and Rectifiers (India).

Roll out of tenders by Power Grid, NTPC and various utilities have also gone up, adds Mamtora.

Mamtora says that 70 percent of the company's capacity is booked for FY17.

The orderbook for the company in third quarter was Rs 250 crore and on April 1, the orderbook jumped to Rs 1,000 crore, which is only 70 percent of the total capacity of the company.

The company has capability to manufacture transformers upto 1000 MVA, 1200 KV class.

Mamtora expects some major tenders coming in this month.

Below is the verbatim transcript of Jitendra Mamtora's interview with Latha Venkatesh & Sonia Shenoy on CNBC-TV18.

Sonia: As per a lot of reports the orders for power generation equipments are going up. Is that something that you are noticing as well?

A: Yes of course, everybody has noticed that and we also have seen sudden surge in the order placement by various utilities and there are lot of tenders which are coming up from Power Grid Corporation of India, NTPC and from various utilities. So it's a good sign for transformer industry as such.

Latha: Have your output and sales in the nine months increased. It doesn't appear so. Is it that you will start showing a faster rate of growth of revenues?

A: What you have seen is nine months topline but the last quarter and the quarters to follow, you will see different kind of topline, so that will show you how we are and for that matter many of the transformer companies are performing.

Sonia: Isn't that a big gestation period because it takes about four-five years to build a plant and post that you will need a lot of the distribution equipment. So don't you think by the time these orders flow in, it will take about three-four years?

A: These are projects mainly the projects based for the fiscal year, so whatever orders are placed; have to be finished in that fiscal or the early next fiscal. So it is not that that is going to take much time and mostly the orders are mainly coming from the transmission companies where we still lack the transmission lines. So if you want to have the connectivity from north east to south, it is really difficult. You do not have the transmission lines and for which the government is putting up all that they can do to improve solution of the transmission lines and that gives a surge to the industries connected to the transmission lines.

Latha: I want to know what is your estimate therefore of FY17 revenues and margins as well?

A: We are fully booked, almost 70 percent of our capacity is booked for this fiscal year and the amount as it stand on April 1, was Rs 1,000 crore which was never like that in the past and we intend to almost finish the entire order in this year.

Latha: This year your nine months revenues is Rs 331 crore, assuming you will end the year with Rs 430 crore, you are saying you will do Rs 1,000 crore next year in revenues, FY17?

A: I cannot reveal the figure of last quarter as of now because if you see the last quarter's figure, everything will be clear to you.

Latha: But even then you are talking about doubling of revenues in FY17 - that is great going. Can we work with that number?

A: Yes you can.

Sonia: I didn't get the order book currently that the company is sitting on and what are the order inflows that you have seen in the past one quarter?

A: Last quarter has given us the order book of Rs 250 crore. So on April 1, I mentioned that the order book was Rs 1,000 crore, so that is good and that is only 70 percent of my capacity what I can do. However, still many tenders we are coming where we are participating, in fact the tenders were due but they were postponed for some reasons by Power Grid, they are due in this month. Once those will come, it will be a huge achievement for us.

Sonia: This entire order book of Rs 1,000 crore -- can you just split it up for us and tell us how much comes from state electricity boards (SEBs), how much are you getting from a lot of the private players, how much from Power Grid?

A: I do not have the breakup of those numbers with me but it is like 70 percent from utilities or Power Grid or NTPC and 30 percent from the industries and exports.

Latha: In the first nine months your margins were just 1 percent. Will they be better?

A: Yes. It can be as high as 10-12 percent.

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First Published on Apr 21, 2016 10:57 am
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