Chennai, Aug 4 (IANS): City based engineering-procurement-construction (EPC) company, BGR Energy Systems Ltd., targeting a revenue of Rs.3,750 crore this fiscal, is confident of beefing up its order book position when several tenders are set to be opened soon, said the company chairman here.
Speaking to IANS, company chairman and managing director B.G.Raghupathy said: "EPC tenders worth between Rs.30,000-40,000 crore are in advanced stages of finalisation. Going by our past strike rate, we expect to get a good share of them."
He said the company's current order book position is around Rs.15,000 crore, which is sufficient to keep it busy for three-four years.
"For the current year, our internal target turnover is around Rs.3,750 crore," Raghupathy said.
Queried about the lower sales and net profit during the first quarter of the current fiscal, as compared to previous year's comparable quarter, Raghupathy said: "Normally we do 15-20 percent of the annual target during the first quarter. This year we have done around 16 percent. Companies like ours would catch up during the third and fourth quarters."
On the lower net profit, he said the increase in interest outgo by Rs.16.59 crore during the first quarter has pulled down the after tax profit.
To a specific query as the the cause of increased interest cost, Raghupathy said: "The receivable outstandings are around Rs.600 crore. We are now getting paid by the state electricity boards (SEB). Their financial position is very tight. Even on Thursday we got Rs.50 crore."
According to Raghupathy, the company has received advance from NTPC Ltd. for supply of super critical boilers for the Solapur Super Thermal Project in Maharashtra and Meja Thermal Power Project in Uttar Pradesh.
"Our collaborators (Hitachi) have started working on the boiler design," he said.
BGR Energy would supply 660 MW super critical boilers two each to the above projects.
The letter of award for supply of two 660 MW super critical boilers for NTPC's project in West Bengal has also been received, added Raghupathy.