Shriram EPC Ltd's Current order book stands at Rs 2200 Cr. Shriram EPC Ltd is one of the Promoters of Ennore Coke Ltd. The latter is expected to start Commercial Productions of Metallurgical Coke (Met Coke) within the next 10-15 days & Completion of the Power Plant will take place by, March, 2008:
Shriram EPC listed at Rs 310 versus its issue price of Rs 300. T Shivaraman, MD & CEO, Shriram EPC Ltd said that their sales for FY09 are pegged at Rs 1500 crore with a PAT of Rs 60 crore. He added that the company will grow by 100% in this year as well.
Speaking to a private Television Channel, Mr.Shivaraman said that their order book currently stands at Rs 2200 crore and added that they are being selective on orders to maintain margins. Excerpts from an exclusive interview with Mr.Shivaraman:
Q: We have pencilled in an estimate in FY09 of you doing about Rs 1,200 crore in terms of net sales and about Rs 50 crore in terms of PAT. Is that a doable target?
A: It’s quite achievable. I think the PAT may even be slightly higher than your estimate, definitely on the turnover we maybe higher than your estimate.
Q: What are you targeting and what would that mean in terms of an EPS?
A: We are looking at the turnover in the region of Rs 1,500 crore for FY09 with PAT in the region of Rs 60 crore for FY09, which turns into a fairly decent number for us. We are basically growing at 100% in the last two years; this year also we will grow close to 100% and we would like to double again next year.
Q: When are your two joint ventures likely to begin operations and how much of a contribution can one see from those JV’s in FY09 onwards?
A: The Leitner JV will start trial manufacturing in April of this year and they should get into full production in the second half of '09. We expect to have about Rs 500 crore of topline coming in from the Leitner JV. The cooling tower, another JV, is already in operation, so that would be an incremental addition.
Q: What is your current order book and what kind of pipeline you are bidding for at this point in time through project you are looking to bag?
A: The order book is around Rs 2,200 crore. The order pipeline is fairly large; we have a lot of bids out in the market place, but we are being a bit selective on the contracts that we take right now, because we need to protect our margins. So we don’t see a challenge in increasing our order book quite significantly in the next six months.
Q: The concern that seems to be that because of the size of your competitors, you probably may not get to the high value end of the turnkey projects and the fact that project cost per se is probably a bit higher for you. Can you just talk a bit about both those things?
A: That’s not a serious concern for us because the projects that we bid on for the steel plant and related areas, we bid in partnership with international majors. So our size is not relevant; at that point, it's how well we are able to work with our partners and how as a team we are able to deliver. So we don’t see a significant challenge in maintaining margins even going forward. [Source: Internet]
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