Technofab Engg eyes Rs 450-460 revenues in FY15

Talking to CNBC-TV18 after bagging new orders worth Rs 262 crore, Arjun Gupta, Whole Time Director, Technofab Engineering said only 10 percent of the new orders received would be realised in FY15 and rest would flow through later.He also spoke about the outlook for the company going forward. He said the company aims to achieve revenues of around Rs 450-460 crore in FY15."Letter of awards have been received for Rs 54 crore for a waste water rehabilitation project in Kenya and for Rs 208 crore for a rural electrification project in Bihar," said the company in its filing.

Gupta said the debt for the company currently stands at Rs 100 crore.Below is the transcript of Arjun Gupta’s interview with Sumaira Abidi and Reema Tendulkar on CNBC-TV18.Sumaira: These new orders that you have won, how much of these orders will you be able to recognise in the last two quarters of FY15?A: Only about 10 percent not more than that. Rest of it would be in following years, mainly in 2016. Reema: What are the margins on these new orders?A: Margins these days are pretty strained. What would happen is down the line we would see some lowering of raw material cost which will help increase our margins in 2015 but not in the current quarter. Sumaira: There is a very sharp increase in terms of your finance cost. Can you tell us what currently your debt is at and any plans if you have to bring it down? A: Debt is at about Rs 100 crore. Finance costs are primarily due to very high receivables and that is also on account of customers not being able to release funds to us. There is retention that need to clear from these customers but unfortunately customers like Lanco, Reliance, Indiabulls, Hindalco, etc a lot of money that is stuck with these customers.

However, we are trying very hard to close these jobs and recover our retention money and once that happens fund flow will improve.

Q: What is the revenue growth expectations?A: Around Rs 450-460 crore for FY15.