With a turnaround on its bottomline, the firm aims to achieve revenues of Rs 1500 crore for FY15 on consolidated basis, says Sudhir Deoras, Managing Director, TRF.
TRF Limited, a Tata Enterprise, has bagged an order worth Rs 354 crore from BHEL, Bangalore for design, engineering, manufacturing, supply, commissioning of a conveying and crushing system with associated equipment for ore, flux, coal and coke handling system for NMDC’s iron and steel plant in Nagarnar, Chattisgarh.
Sudhir Deoras, Managing Director is confident of booking revenues and margins on this order from second half of this fiscal itself. With a turnaround on its bottomline, the firm aims to achieve revenues of Rs 1500 crore for FY15 on consolidated basis, he says in an interview with CNBC-TV18’s Anuj Singhal and Ekta Batra.
With an order book of Rs 1500 crore, its debt on book stands at Rs 500 crore on consolidated basis, he adds.
Below is the verbatim transcript of the interview:
Q: Details on Rs 354 crore order from BHEL. When would you start executing it and what would it look like in terms of margins as well as revenue accretion for you?
A: It’s good news that we got a good order after a long time. This is NMDC’s steel plant that is coming up at Nagarnar and BHEL is executing the project. We have won the raw material handling system order. We wish to start off quickly. We are seeing possibility of revenues and margins coming in H2 itself, so Q4, we should be booking the topline as well as bottomline.
Q: What is your current order book and how much you will be able to execute and what is your revenue projection for this year?
A: This year’s revenue projection is close to Rs 1,500 crore – that is including our subsidiary but the business, which we are talking, is about Rs 900 crore.
Q: What would you entire order book stand at, at this point?
A: Around Rs 1,500 crore.
Q: When will we see any sort of improvement in the margins because that has been a point of concern amongst the analysts and hence maybe when could we see the company break into the black on the bottomline?
A: We hope that by this year-end we should be turning around.
Q: If you have any kind of numbers in mind and by which quarter in particular you will be turning into black, by Q3 or would most of the growth come by Q4?
A: By Q3, we should be in a position to see some good numbers and by year-end, of course we will be turning around.
Q: What would you debt on book stand at?
A: All together it is close to Rs 500 crore.
Q: You would assume that you would be servicing around Rs 14 crore of finance cost on quarterly basis for the remaining part of the fiscal?
A: Yes, we shall.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.