Our order target for the year is Rs 8,000 crore: Manish Mohnot, MD, Kalpataru Power

Kalpataru Power has secured new orders exceeding Rs 1900 crore. In a chat with ET Now, Manish Mohnot, MD, Kalpataru Power, says that they see many opportunities for future orders from domestic and international business. Edited excerpts:


ET Now: What kind of margins you were expecting to see in the projects worth ?

Manish Mohnot: The Rs 1,900 crore orders have two projects - one is in turnkey and other one is in Afghanistan on a blended basis. Our margins on a order book is in the range of 10% and I think this order should also give us in the similar range.

ET Now: What the order book stands at for Kalpataru?

Manish Mohnot: In the current year we won orders closer to Rs 4,000 crore. In the last four months our order book is in the range of Rs 11,000 crore depending upon the revenues in Q1.

ET Now: How has the order book accretion been in Q1 FY17? What kind of targets are you setting out for FY17 in terms of your total order book?

Manish Mohnot: We have favorably placed in orders closer to Rs 2,000 crore. Our targets for the year in terms of new orders is more than Rs 8,000 crore, which looks easily achievable.

ET Now: The projects in which you have an L1 position can you just highlight when they are expected to convert?

Manish Mohnot: We expect all of this to get converted in Q2 itself. Majority of them are on their advance stages and we expect this entire Rs 2,000 crore to get converted in Q2.

ET Now: What is the outlook on railways and the pipeline segment? What kind of opportunities you are seeing within these spaces?

Manish Mohnot: We are seeing a lot of tenders coming up on both railways and pipeline. Our current order book on these two segments together is more than Rs 1,000 crore and we believe that this order book can be doubled in the current year. There are lot of opportunities in both the segments both in India as well as in the international market.

ET Now: What is the consolidated debt on your books? What is your plan to offload debt?

Manish Mohnot: Our debt at the year end on a standalone basis till 31st March was in the range of Rs 650 crore. We are very conservative on debt and we working hard to make sure that it reduces as we go forward. For the current year, with the plan of 25% growth on top line, we do not see our debt growing by the same region. We expect debt to come down over a period of time compared to the incremental revenue.