International orderbook now at Rs 3800 cr: Voltas

Excerpts from CNBC-TV18’s exclusive interview with MM Miyajiwala:

Q: I was asking you to line out in specific what’s happened this time around on the bottomline and what exactly the operating profit margin performance has been for Voltas?

A: If you look at our quarterly results and annual result, I would like to say that we have done extremely well particularly on operating profit levels. Last year, we had two one-time items, we had an exceptional income of about Rs 68 crore coming from sale of investment in one of our subsidiaries companies and another one of our subsidiary companies was also holding shares in this company.

So whatever profits we got out of that, they declared a very substantial dividend to Voltas of about Rs 12 crore; if you exclude that, we received a very significant interest refund - we received from the Income Tax department of about Rs 16 crore and we took the profits before exceptional items, then there is a growth of 100% over last year, which is very significant.

Our turnover has also risen by about 30% and the most significant thing is that our orderbook looks very healthy, our domestic orderbook has risen by 37% to Rs 800 crore and our international orderbook now stands at Rs 3,800 crore, which is even higher than our annual turnover of Rs 3,088 crore that we have achieved in the year 2007-08.

So it portrays very well for the future to come and we are very happy and bullish about our future and that is also indicated by the increase in the dividend in the current year.

Q: What has happened with the margins because of the rise in the input cost and can you just break up that orderbook picture between the cooling side and the engineering products?

A: As far as the cooling side is concerned, there is no orderbook because this is primarily stock in sale. The entire orderbook that I’m taking about is an electromechanical project both in India and international - so that adds upto Rs 4,600 crore as against about Rs 1,600 crore of turnover that we have for the year in that segment.