Things are looking better in the power sector, says Mr A. K. Bishnoi, Chairman and Managing Director of Tecpro Systems Ltd, a large supplier of ‘balance of plant' equipment to power projects.
To substantiate this, he points to the fact that three tenders for power projects, in three different states, were opened in the last one month—Singareni Colleries (2 x 660 MW), Bhusawal, Mahagenco (1 x 600 MW) and Shri Singaji Thermal Power (2 x 66 MW) in Madhya Pradesh.
This upbeat statement comes on the back of the company booking orders worth close to Rs 1,800 crore in the first nine months of the current year, most of them from the power sector. Tecpro has orders on hand worth Rs 4,600 crore. Mr Bishnoi said that the company was L1 (the best bidder) in tenders worth Rs 750 crore.
In addition, the ‘live tenders' – or the tenders the company is participating in – add up to Rs 10,000 crore. Most of these, but not all, are from the power sector.
“It has to happen,” Mr Bishnoi told Business Line, referring to the inevitability of the power sector picking up. In this context, he also pointed out that the judgement had been reserved at the Supreme Court in the case relating to NTPC Ltd's first batch tender for equipment for 9 units of 660 MW. The issue has got stuck because a company that lost out in the tendering – Ansaldo – decided to settle the matter in the Courts.
When this comes out, it would be a further fillip to the power sector, Mr Bishnoi said.
Tecpro on Tuesday announced its third quarter results. The company made a net profit of Rs 14.68 crore on a turnover of Rs 626 crore compared with Rs 20 crore on Rs 462 crore. For the nine-month period ended December 31, Techpro's turnover was Rs 1,429 crore (Rs 1,013 crore), and net profit, Rs 29 crore (Rs 26.5 crore).
Mr Bishnoi said that the company's topline would grow 35 per cent in 2011-12.