Vimal Kejriwal, MD & CEO of KEC International on Monday said that he expects double digit revenues in FY22.

“FY22 our revenue growth will be in double digit because of an order book of Rs 26,000 crore. Now whether we will do 10% or 15% depends on how the metal prices and all behave, but double digit is definitely there,” he said in an interview to CNBC-TV18.

On order wins, Kejriwal said that order inflows are at Rs 9,600 crore for the year so far. He added that the L-1 order book is at Rs 6,000 crore.

“Some are from L-1 position and some are not from L-1 position. We have got at least 2 orders where we were not L-1. Our total tally of order intake is around Rs 9,600 crore plus L-1 of Rs 6,000 crore. So we are roughly around 30% higher than last year if you add both the components,” he said.

Kejriwal also said that the 62% of the order book is domestic and is driven by the railways order book. He said that railways is close to 30% of the revenues and he is expecting it to grow about 20% over the year.

“If you look at the revenue part, FY21, railways would be at least 30% and civil will be closer to 9-10%. However, next year we expect civil to grow by at least 50-55%. So, next year civil will be close to 15-17%. Railways will grow by 20% of their current numbers. So, railways will also be closer to 25-27%,” he said.

On margins, he said, “The orders were at similar margins of 9-10%. However, if I have to execute them today, then the margins will go down because of metal prices. But these orders would typically take 12-18 months. So, our expectation is that we would be able to retain our normal margins of around 10% as and when execution starts. Q2 we hope that steel prices will go down. So, Q2 will definitely improve.”

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(Edited by : Abhishek Jha)