Hope to enhance order book by Rs 3000-4000 cr in FY16: HCC

Praveen Sood, Group CFO of HCC told CNBC-TV18 that going forward the company is hopeful of order book growing by another Rs 3000-4000 in FY16, from current Rs 14000 crore.  In July the company managed to get two contracts of around Rs 700 crore. Speaking about the lower than expected turnover in the first quarter, Sood said it was 4 percent compared to the same quarter last year mainly because of problems in their existing two projects that contribute almost 30 percent to the turnover. The two projects bieng Kishanganga and NH34. In NH34 is suffering because of land availability whereas with regards to Kishanganga it is not company specific but due to some local disturbances.The decline in turnover was also due to lack of increase in order book for the last 3-4 quarters and the company is currently sitting on L1 positions of around Rs 3000 crore. However, this quarter not a single order has been converted from L1 position into main order, he added.Although there have been some improvement in Kishanganga project now, which could give better turnover in Q2, the third and fourth quarter would be the real test for the company in terms of improving their turnover, said Sood.He said the company has been taking all efforts to convert L1 positions into proper orders but was uncertain of the time line. Watch video for more