Expect Orders Worth Rs 3,000 Crore Soon: KEC International
KEC New Orders
KEC International Ltd., an RPG group company, bagged new orders on Thursday worth Rs 1,224 crore in India, Thailand, and Bangladesh.
In the current financial year, KEC saw an order inflow of over Rs 4,000 crore, including this latest order. The overall order book of the company stands at over Rs 10,500 crore. Vimal Kejriwal, the managing director and chief executive officer of KEC International told BloombergQuint that orders worth Rs 3,000 crore will materialise soon.
Here are the edited excerpts from the interview:
What are the margin levels that the company is expecting from these new orders?
Margins should be around 8 to 10 percent for the current orders received.
Is the company experiencing a pick-up in order inflow?
There is no pick up as such, but it is steady, and execution is picking up. So in a way, it is going up. This year, we are expecting at least a 10 percent rise in orders compared to last year.
Are there any more orders in the pipeline?
We bid every day for different projects. But there are projects worth Rs 3,000 crore where we have quoted the lowest bid. So we should definitely receive additional orders worth Rs 3,000 crore soon.
In which segment is the company expecting the bulk of future growth?
Growth will come primarily from transmission and distribution, but railways is becoming much more positive.
Any future orders from Railways?
We have placed bids for 10 to 15 projects of railways where the bids have not yet opened up. We expect Railways to contribute to around 6 percent of our total revenue this year. Next year, that number should reach about 10 percent.
Any update on the Brazilian operations?
Brazil operations are performing very well. We have an order book for almost the next two years.