Expect new order inflow of Rs 8500cr in FY13: NCC

NCC has declared its fourth quarter results. The company’s net profit stands at Rs 4.6 crore versus Rs 36 crore on year-on-year (YoY) basis.

In an interview to CNBC-TV18, YD Murthy, VP-finance of NCC says, the order book of the company at the end of the year is about Rs 20,195 crore. “In the current year, we are looking at fresh orders accretion of about Rs 8,500 crore. We believe we are comfortably placed order book wise,” he adds. Below is the edited transcript of his interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video. Q: What exactly you have closed FY12 with in terms of an order intake? What your guidance is for FY13 on order growth? A: In the fourth quarter, on a standalone basis, we have recorded a top-line of Rs 1,755 crore, EBIT of Rs 102 crore and net profit of Rs 10.7 crore. For the year as a whole, we have a top-line of Rs 5,250 crore, EBIT of Rs 399 crore and net profit of Rs 36 crore. For year as a whole, we had orders of about Rs 10,200 crore, fresh orders received in the year. But that includes our power order of about Rs 5,200 crore, given by NCC Power to the parent company. Now, the order book of the company at the end of the year is about Rs 20,195 crore. In the current year, we are looking at fresh orders accretion of about Rs 8,500 crore. We believe we are comfortably placed order book wise. As far as the turnover guidance for the year is concerned, it was discussed at the board level and the board has taken a view that in view of very volatile market condition, no guidance should be given to the market. But we are confident we would be able to do better than what we had done last year. Q: In FY12, we saw quite a bit of margin erosion, down to 8.2% on a standalone level. What are you confident of achieving in terms of margin in FY13? A: 2012 was a bad year for all infra and construction the construction companies only because of two reasons. One is very high inflation and other one is very high interest rates. Ours is a capital intensive business. So, we have taken a big hit not only at EBITDA level, but also at net profit level mainly because of very high interest burden. Businesses are cyclical in nature. We are on a down cycle. We are bottoming out from 2013. From the current year onwards, things should definitely improve. In the third quarter of last year we declared a loss whereas in the fourth quarter we bounced back and we declared a profit. Also, for the year as a whole we declared a profit nevertheless, much less than what it was in the previous year. We are at the bottom of the business cycle. We believe that it is going to start moving up first. We want to catch that upward cycle. We will be able to generate substantial increase in profit margins both at EBITDA level and net profit level in the current financial year.