McNally sees FY11 revenue at Rs 3,500 crore

Mcnally Bharat Engineering Company Ltd. | Engineering - Construction | Construction & Infrastructure | BSE: 532629 | NSE: MBECL

12 Mar 2010 Evaluate

McNally Bharat Engineering (MBEL) expects total revenue to touch Rs 3,500 crore in FY11, helped by its bidding for orders in infrastructure. By the end of the current financial year, total revenue is expected to be around Rs 1,800-2,000 crore.

Its current order book size is at around Rs 3,600 crore, and it is pursuing orders worth more than Rs 8,000 crore particularly in the sectors like roads, ports, power and other infrastructure. Nearly 80 per cent of the projects that Mcnally is eyeing are in the government sectors and the company expects its FY margin to be around 7-7.5 per cent.

The company plans to raise Rs 100-110 crore, through a combination of debt and equity, in the next financial year to fund its expansion. The rights issue which it announced late last year, which will hit the market in July, is expected to generate around Rs 44 crore and the remaining would be mobilised through debt.

Meanwhile the company is also in talks with US-based GE Energy and another Russian firm for a possible joint venture in the nuclear power plant EPC (engineering, procurement and construction) business. It will be bidding for the upcoming tenders from the Nuclear Power Corporation of India, which aims develop 700 Mw nuclear power in the country.

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