Kalpataru eyeing 15% growth in FY17 as order book swells

Sunanda Jayaseelan | Updated on January 20, 2018

MANISH MOHNOT, Managing Director, Kalpataru Power Transmission

Power sector is starting to looking up after a slew of reforms initiated by the government. Kalpataru Power Transmission shares gained as much as 7 per cent in the bourses after it won a major order worth ₹1,320 crore from the Power Grid Corporation. Speaking to Bloomberg TV India, Kalpataru Managing Director Manish Mohnot says the company’s order book now stands at ₹8,000 crore. The company is looking at least 15 per cent growth in FY17, he said.

This ₹1,320-crore order from PGCIL has been broken down into two small orders. Can you run us through the details?

The order consists of various projects of Power Grid and the majority of them are projects that we won through a competitive bidding process with other private-sector players. So there is one large project — ₹778 crore for a turnkey transmission line project along Vemagiri-Chilakaluripeta — and the other project, of ₹353 crore, is for Gadarwara-Warora transmission supply line. A significant portion of the order is for these two lines.

During the third quarter, the company’s revenues dipped. What’s the outlook for fourth quarter and FY17?

Our outlook for FY16 at the beginning of the year was itself not very optimistic in terms of revenue because we started the year with a very low order book of ₹5,000 crore. The order book has grown now. So the outlook for the current year’s revenue is not very optimistic. We would be at similar levels as previous year. Q4 has been much better than previous year’s. There you should see a good growth of 10-15 per cent. For the next year, we have good visibility. So definitely you will see reasonably good growth. With an order book in the range of ₹8,000 crore, we should be growing at a minimum of 15 per cent going forward.

What is your order book looking like for FY16 and can you break it down in terms of transmission and infrastructure?

As of now, our order book is in the range of ₹8000 crore. Transmission would be of ₹7,000 crore, out of this 60 per cent would be domestic and balance would be international. Another ₹1,000 crore of the order-book is for infrastructure, which consists of primary pipelines and railways.

What are the margins looking like for these different segments?

We typically have a blended margin in our order book. The margins are in the range of 10 per cent plus-minus 50 bps.

Can you give us the guidance for FY17?

We are still finalising our budget for FY17. But given our order book, I think we should look at a growth of at least 15 per cent. And we have a lot of visibility on tenders coming not only from Power Grid but also from private players, both domestic and international. I think FY17 would be much better than FY16.

Published on March 23, 2016

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