Elecon Engg expects orders worth Rs600 cr in 3-4 months

Elecon Engg expects orders worth Rs600 cr in 3-4 months

Mumbai: Mehanical engineering firm Elecon Engineering Co. Ltd is expecting orders worth Rs600 crore in three-four months and sees FY12 turnover rising to about Rs1,500 crore, a top official told Reuters on Thursday.

“There are various projects that we have quoted for. We are expecting that we will get an NTPC order because in one of the projects we are the lowest, and the others are from various parties," chairman and managing director Prayasvin Patel said in an interview.

He, however, did not divulge the details.

On Tuesday, the company had reported a 13% fall in net profit for Jan-March to Rs235.7 million.

The year-ago profit of the company included about Rs75-80 million gain on account of sale of investments, he said.

FY12 Outlook

Patel sees the company’s order book rising to about Rs1,600-2,000 crore by FY12-end, as it expects additional orders to come in during the fiscal.

Its order book position rose to Rs1,629 crore as on 23 May 2011, from Rs1,384 crore as on 31 March.

Elecon Engineering, which made a capex of Rs540 million in FY11, sees its FY12 spend more than doubling to Rs120 crore.

“The increase is basically due to expansion of capacity, which is working out to be almost 65%. The rest of it for replacement, sustainability and quality improvements," he said.

The capacity expansion would take place at both materials handling equipment and industrial gearbox manufacturing units.

The company, which had a net debt of about Rs530 crore as on 31 March, sees it rising due to the increase in capex and plans to raise funds through various modes.

“It is not yet decided what the vehicle we would take to raise funds, it could be all options... That (the amount to be raised) would be finalised very shortly."

In FY12, the company expects a turnover of Rs1,500 crore, as it has a clear visibility for the 12-18 months. It had posted a turnover of Rs1,177 crore in FY11.

Shares of the company closed up 1.57% at Rs67.95 a share in a strong Mumbai stock market.