KEC Intl's current order book at Rs 6300cr

KEC International has won orders from Abu Dhabi in the Middle East aggregating to Rs 401 crores. In an interview with CNBC-TV18, Ramesh Chandak, Chairman of KEC International spoke about the order and his outlook for the company. Q: How much of your order book grown in the October December quarter by what percentage has it grown? A: I don’t have the percentage wise but in the last two weeks we have received orders of almost Rs 940 crores, and this is taking our order book close to Rs 6,300 crore, so this is a quantum jump. Q: So from Rs 5,300 crore to Rs 6,300 crore in month? A: It was around Rs 5,500-5,600 crore, so we are close to Rs 6,300 and it was a big jump to us. Q: And this will take care of how many months of work- is it six months, is it one year? A: Its 18 months because most of the orders are 18 months and it should take care for 18 months. Q: The Rs 960 crore that you have received are these all fixed price contracts? A: One has to understand that for example let us say fixed price for aluminium, we have received the order yesterday, and we have covered the aluminium yesterday, so it’s really not fixed because it is hedgeable, so we hedge. There is a lot of confusion every time about fixed price, fixed price does not mean that there is a risk involved because normally when we get the order we will try to cover alumininum, zinc immediately because there is market available for that. Q: What would your margins be? A: I always said that on an average that our margins are 10% and they will always be there and I don’t see any problems dramatically changing up or down.