Revenues may drop, says Tata Hitachi top official
Tata Hitachi Construction Machinery, joint venture of Tata Motors and Hitachi Construction Machinery, said its revenues may drop by 8-10 per cent this year.
"We will be roughly 8 to 10 per cent less than last year. For the last three quarters I think we will be about 10 per cent to 12 per cent less," Tata Hitachi Managing Director Ranaveer Sinha said.
Earlier, speaking in Kharagpur (where the company has a plant), Sinha had said the company clocked Rs 3,000 crore revenue last financial year (2011-12).
"The second quarter was particularly bad .. there were also monsoons and floods. No new contract was awarded. Even for the existing contracts money was not given or paid. So flow of fund was not available," said Sinha today, who was here to launch ZAXIS 220 LC - GI Series Hydraulic Excavator in Andhra Pradesh market.
"Many infrastructure companies are going for restructuring of loans, because there is no fund flow. Projects are at a standstill. Payments are not happening. Banks expect their money to come back. So they have to restructure their loans."
According to him the situation may improve ahead of the elections. "For election to take place, somebody to come back to power, they have to make sure that the economy is doing well. I expect that before 2014, in 2013 itself, we will have much better budget, much better encouragement for infrastructure and I expect economy will bounce back in 2014."
Replying to a query he said the company is expected to cross billion dollar revenue mark in the next three years.
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