Transformers & Rectifiers sees order book at Rs 850 cr by April

Jitendra Mamtora, chairman of Transformers and Rectifiers India, said the order book for execution over the next one year will be roughly around Rs 850 crore by April.  

The company looks to bag deals from Power Grid as well, he said, adding the competition is limited and enough order pipeline exists for all participants.

A report by CLSA on Tuesday pointed out that power equipment orders are at 5-year highs and the beginning of new power capacity expansion cycle in FY16 is confirmed. The report attributed the recovery to improvement in state distribution companies’ orders.Below is the transcript of Jitendra Mamtora’s interview with CNBC-TV18's Mangalam Maloo and Ekta Batra.Mangalam: We understand that orders of power equipments are at a five year high. So, what does that mean for a company like you Transformers and Rectifiers. Do you see orders coming up to you guys very soon, if yes, then what is the quantum and at the same time could you apprise us of your order book?A: There are lot of tenders which are in the pipeline. But we have enough orders for almost meeting the next years requirements that orders and the kind of order booking which is going to be there as on April 1 this year will be something like Rs 850 crore and we have participated in lot many other tenders where we intend to do good. The prices are improving as such, there is no such competition which was earlier there. Everybody is having a healthy order booking.Besides that UDAY is going to play a major role again as discoms are going to do better under these schemes and once the discom situation improves along the chain the transmission and generation will also do good.Ekta: Can you tell us in terms of Transformers and Rectifiers when would you possibly start seeing incremental order inflows once there is bidding that takes place for power generation equipment because we understand that there was an 87 percent increase in bids open to the 20 gigawatt for the power sector. So, eventually when would Transformers and Rectifiers see an order inflow, would that come in with a lag, say maybe a few months down the line?A: As such as I said the order inflow has already started and we are flooded with the orders as such as I just said a while ago that the order book as on today is huge which will be meeting our next year\\'s production target. Besides that we are participating in many other tenders of Power Grid. A lot of tenders which are being floated by Power Grid and as now we are going to be on our own. We will be qualifying for participating in 765 KV transformers and reactors as well as 400 KV transformers. We expect good orders from Power Grid also in next fiscal year and those orders will be mainly for the last quarter of the next year and the first and the second quarter of 2018. So, everything is in the pipeline and we expect that most of the transformer manufactures are going to do well in the years to come.