Mumbai: Power equipment maker Emco Ltd expects to clock lower revenue growth than forecast in 2008-09, as anticipated order inflows from a major client did not come through in the first quarter, a top official told Reuters.
“Revenue growth for the year is seen at 35%, down from the 50% growth that the company forecast in April,” Chairman Rajesh Jain told Reuters late on Tuesday.
“We were expecting some orders on the transmission line which we thought would be coming in the first three months. Those orders have not yet come in. We had factored in certain revenues coming from there,” Jain said in an interview.
This has hurt some of Emco’s plans and will lead to lower revenue in the fourth quarter, he added. Emco follows an April to March accounting year.
“However, operating profit margin would be at 13.5%, in line with the April forecast,” he said.
“Emco, whose traditional business is making transformers, switchgears and setting up sub-stations for power projects, is now getting into power generation through its wholly-owned unit, Emco Energy,” he added.
It will also shortly commence mining and selling coal from a mine in Indonesia, in which it recently picked up a stake, said Jain.