Kolkata: McNally Bharat Engineering Co Ltd expects total revenue to touch Rs3,500 crore in FY11, helped by its bidding for orders in infrastructure, a top official told Reuters on Thursday.
“By the end of the current financial year, total revenue is expected to be around Rs1,800-2,000 crore, and in FY11 we would touch Rs3,500 crore mark,” managing director, Srinivash Singh told Reuters in an interview.
“Our current order book size is at around Rs3,600 crore, and we are pursuing orders worth more than Rs8,000 crore particularly in the sectors like roads, ports, power and other infrastructure,” he added.
Nearly 80% of the projects that Mcnally is eyeing are in the government sectors and the company expects its FY margin to be around 7-7.5%, he added.
The company plans to raise Rs100-110 crore, through a combination of debt and equity, in the next financial year to fund its expansion, he said.
“The rights issue which we announced late last year, which will hit the market in July, is expected to generate around Rs44 crore and the remaining would be mobilised through debt,” Singh said.
Last November, MBEL said it would issue one new share for every 10 held at Rs140 a share through a rights issue.
Meanwhile the company is also in talks with US-based GE Energy and another Russian firm for a possible joint venture in the nuclear power plant EPC (engineering, procurement and construction) business, Singh said.
“We are in talks but we are yet to reach any agreement,” he said.
“But we will be bidding for the upcoming tenders from the Nuclear Power Corporation of India, which aims develop 700MW nuclear power in the country.”
As a part of a restructuring exercise, the Kolkata-based company is planning to list its subsidiary company McNally Sayaji Engineering Ltd (MSEL) on the BSE and NSE in FY11, he said.
MSEL is already listed in two regional stock exchanges in Delhi and Ahmadabad, he added.