Improved order inflows to boost margins, performance: KEC

The management of KEC International is hopeful of an ever better performance in the coming quarters. The company posted a 34 percent surge in its net profits to Rs 22 crore in the quarter-ended in September. Ramesh Chandak, its managing director and CEO is banking on the increased order flow in the last few months. Currently, the order book has crossed Rs 10,000 crore, he tells CNBC-TV18. He is also hopeful of clocking margins around eight percent from Q1 of FY15.

Also read: Will see accruals from Rs 1K-cr deal Q3 onwards: KEC Int'l

Below is the edited transcript of his interview to CNBC-TV18.

Q: Can you explain what led to this sharp jump in your EBITDA and operating margins?

A: If you see that last corresponding quarter, our EBITDA was very low. This 6.6 or 6.3 percent margin is less than the normal margin. We had some legacy orders where we had low margins. We are getting over gradually with those and that will help us to build the EBITDA margins more.

Gradually, the results should improve even more than what current level is there. We had good execution in the transmission this quarter and that will also help us to have a good turnover. We are also seeing a lot many orders are now flowing and our order book has crossed Rs 10,000 crore.

It has a very good mix of international and domestic as a normal and overall we are seeing that there is an improvement in the performance.

Q: You were talking about execution, but the total income, at least on a consolidated basis, has only grown about 6.5-7 percent this quarter as compared to 28 percent growth that we saw in the previous quarter?

A: Particularly previous quarter was an exceptional case. The 28 percent is not the normal growth and this 6 percent growth in this quarter, in spite of extended rains, is there.

This year, the rains were much more than last year. Normally, in infrastructure projects, not much work can be done during the rainy season. So, in spite of that, there has been a growth which is a very good sign.

Q: Last quarter was bad and because of that the base effect is quite clearly showing. At what stage will you go back to the kind of margin you used to enjoy in Q1 of FY13 closer to 8 percent or so? Would you be able to do that at some point this year?

A: It should be from the next year. From FY15, we can expect those kind of margins.

Anda sedang membaca artikel tentang

Improved order inflows to boost margins, performance: KEC

Dengan url

http://berhentialkohol.blogspot.com/2013/10/improved-order-inflows-to-boost-margins.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

Improved order inflows to boost margins, performance: KEC

namun jangan lupa untuk meletakkan link

Improved order inflows to boost margins, performance: KEC

sebagai sumbernya