Kei Industries Expects Rs 1,700cr Revenue For Fy12
Anil Gupta, CMD of KEI Industries , in an interview with CNBC-TV18s Reema Tendulkar and Ekta Batra
, spoke about the recent happenings in his company and the road ahead.
Below is the verbatim transcript of the interview. Also watch the accompanying video.
Q: Could you tell us the size of the orders that you are looking to bid for in FY12?
A: We are presently operating in two areas of business one is cables and our other added segment Engineering, Procurement and Construction (EPC) contracts. We have got Rs 300 crore plus contracts under Restructured Accelerated Power Development Reforms Program (R-APDRP) schemes with MP Distribution companies.
In next financial year, they are likely to be around Rs 3,000 crore worth of contracts under EPC space and also the extra high voltage cable business. This was a project built by us which was commissioned last year.
Q: Can you tell about the total amount of orders which are currently under execution by the company?
A: We have a total turnkey order of around Rs 400 crore in EPC and EHV cable turnkey projects. Apart from that, we have around Rs 300 crore plus order book positioned into manufacture and supply of cables from our cable business. It totally makes up to Rs 700 crore.
Q: In particular for Accelerated Power Development Reforms Program (APDRP) scheme in Madhya Pradesh, how much of a potential do you see this to be for you in terms of an execution going forward. How could it contribute in terms of FY12 revenues for you?
A: We expect sales revenue of around Rs 150 crore in FY12 from these projects. The balance will come in the next year because these projects have to be delivered within 18 to 24 months period.
Q: You did around Rs 910 crore in FY10 and your nine months revenue is around Rs 800 crore. What are you working with in terms of FY12 guidance in terms of a topline?
A: FY12 guidance will be approximately Rs 1,700 crore.
Q: Where else do you see this growth coming from segmentally?
A: It will be coming from two additional segments one is the extra high voltage cable project which was commissioned in October 2010 and will contribute significantly to our turnover. The other segment will be the EPC turnkey contracts from this distribution and transmission sector.
Q: What about the EBITDA margins at an operating level on this Rs 1700 crore?
A: At operating level, we expect to achieve between 9-10% EBITDA.
Q: You have already bagged the APDRP order from Madhya Pradesh. Are there any other states that you are looking to bid for or are in negotiation with?
A: We will bid in Rajasthan for similar projects. We have bid for a lot of contracts in Karnataka. We expect some results from there.
Q: When are you hoping to hear from them? How large is the size, if you do get it?
A: I dont have the exact figure of these projects. They are in the region of around Rs 500 crore. We expect these decisions to take place in three-four months. Price bids have not yet opened.
Q: You were looking at acquiring a couple of companies or some units in the European Union (EU) region. Has any kind of finalisation done on that front? Will we hear anything about it in Q1?
A: No, not yet. We are not pursuing it very hard.
by: Priya Singh
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