Eyeing 10-15% CAGR, reduction in interest costs: KEC Int'l

Endorsing the good growth in first quarter of FY16, Vimal Kejriwal, MD & CEO, KEC International told CNBC-TV18 that the company is confident of achieving a compounded annual growth of 10-15 percent and margins of around 7.5-7.8 percent.The global infrastructure EPC major, on Monday reported over two-fold jump in consolidated net profit at Rs 30.39 crore for the quarter ended June 30.The company’s total order book currently stands at of Rs 10,600 crore and had an order intake of Rs 3000 crore in first quarter, said Kejriwal. "We are L1 in more than 3000 cr on top of 3000 which we already had and on top of Rs 3000 crore which we got in Q4 FY15, we have one of thebest order books in a long time," he said.The company is also hopeful of bringing down the interest costs from 3.8 percent to 3 percent in FY16 aided by export earnings and by shifting the borrowings to market related rates, said Kejriwal.Below is the transcript of Vimal Kejriwal\\'s interview with Latha Venkatesh and Sonia Shenoy on CNBC-TV18. Sonia: You have seen an income growth of 9 percent and a big profit jump up this time but if you can tell us what is the new order intake that KEC International has seen in this quarter and what does it take your total orderbook to? A: Total order intake which we had in this quarter was around Rs 3,000 crore and our total order intake as of today -- the order book is around Rs 10,600 crore. Latha: What is the kind of orders you are seeing on the horizon over the next nine months or the remaining part of FY16 because it appears that Power Grid is bursting at it seems with money to invest so should we expect a better order book by the end of the year? A: I think so because if you look at our L1 position, we are L1 in more than Rs 3,000 crore, this is on top of Rs 3,000 crore which we already had and on top of almost Rs 3,000 crore which we got in Q4 from January to March this year. So I think we have one of the best order books which at least I have seen in a long time. Sonia: What kind of margins are you enjoying on these orders and what would your blended margins look like for the entire fiscal of FY16? A: For the fiscal, we have been talking about margin of around 7.5-7.8 percent, if you compare that last year we had a margin of 6 percent and this quarter we have a margin of around 7.5 percent. So we are well placed to achieve our targeted margins of 7.5-8 percent. for the entire interview watch video