Mcnally Bharat Engineering recently won an order worth Rs 50 crore when converted from euro to rupees from MBE Coal & Minerals. “The order is for the complete package of beneficiation equipment which will be supplied in the Ural area of Russia,” says Prabir Ghosh, Wholetime Director and Group CFO, Mcnally Bharat Engineering. The order will be executed in phases and will be completed in 20 months.
Also Read: Have seen balanced growth in US, Europe & Asia: HCL Tech
He also spoke in detail about the various phases of the USD 80-100 million South African export order.
Below is the verbatim transcript of Prabir Ghosh's interview on CNBC-TV18
Q: You have won an order from MBE Coal & Minerals which is worth around Rs 50 crore if you convert it from euros into rupees. Can you just take us through the details of the order? When does it start execution and what would be the margins as well as the run rate on the order?
A: This is one of our step-down subsidiaries based in Germany and the order is for our complete package of beneficiation equipment which will be supplied in the Ural area of Russia. Total size of the order is about 6 million euro. The order will be executed in phases, but the entire supply will be completed in total period of 20 months. All these beneficiation jobs are high margin jobs where we get at least 14 percent EBITDA. So this is our good beginning in Russia, because Russia is a market where our company was targeting for the last couple of years, but nothing big breakthrough happened there. So this definitely is a positive development and we are looking big in the Russian market through this company.
Q: The other issue was about this South African export order, USD 80-100 million, which was a big one. What is the status on that?
A: We have already finalised our entire technical details. We have already billed about USD 2.5 million for initial designing because these orders are done in three phases, first is initial designing for which we have already billed the amount in this financial year. Next part of order is basically for supplying this beneficiation plant with fluorspar beneficiation plant and the third part will be to build a complete acid plant which is downstream. There are three stages in this order. The second stage is now on. We are finalising the entire technical and commercial details and hopefully we should be able to zero down on all the things within next couple of weeks, maybe about 4-6 weeks. They are also in the final phase of their investing partner who they have already shortlisted. So we hope this order execution will start maybe sometime in the second quarter of the next financial year.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
