Key takeaways of the conference call

The standalone carry forward order book including refurbishment orders was Rs 600 crore. And the consolidated order book as end of Sep 2014 stood at 770 crore. Standalone Order book excluding aftermarkets as end of Sep 2014 stood at Rs 550 crore.

Order intake in H1FY15 was up 47% to Rs 290 crore and of which aftermarket/refurbishment orders were about Rs 61 crore. And the balance is product orders and of which domestic orders was Rs 90 crore and balance are export orders.

After witnessing decline in 2011-13, the domestic market for turbines upto 30 MW has shown a marginal increase in FY14. While the overall domestic market still remain more or less at the same level as last year, there has been an increase in new enquiries and the customers are restarting the discussions on many enquiries, which are expected to start finalizing from Q4FY15 onwards.

In domestic market the company could improve its market share as the order finalized in Q2FY15 has been significantly higher than the corresponding period of last year. The company believes the coming quarters will see policy initiatives which in turn should result in fresh investment in infrastructure and other industrial segments. This should eventually lead to new enquiries and order finalization.

Overall the outlook in the export market is quite robust and the company expects a strong order booking in the coming quarters from the export market so as to have a significantly higher export order booking for FY15. The focus of the company on the export market and spreading its geographic reach is also gaining momentum and is driving export order booking. H1FY15 export booking is higher than the last full year's export order intake. In 0-30 mw range the company gets enquiries from over 100 countries and have installations over 50 countries.

The order intake in the high margin after-market business has also shown an improvement during the quarter with an order inflow of Rs 38 crore, which the company believe will help it in achieving a good growth in the aftermarket business for the year as a whole.

Currently the export component in after sales revenue is not significant and the company is trying to address this by opening up service centre overseas. The company is to open service centre i.e. Central America, Europe, Middle East and South East Asia to expand the after-market revenue stream.

Given robust order book the company believes that it should achieve significant growth in turnover on both standalone and consolidated basis during FY 15.

In Q2FY15 despatches of Rs 123 crore the share of products was Rs 90 crore and aftermarket sales was Rs 28 crore. (It's 70:30 in favour of domestic:exports)

Since yen has gone up the company is effectively compete with Japanese players who are the other competitors apart from Siemens in global market for the company.

The domestic market for 0-30 MW range of turbines in 2013-14 I was about 700 MW and the company expect the market to remain same or flat for current fiscal as well. The company has 65% market share in FY14 and in H1FY15 the market share of the company was about 70%.

The order inflow in the JV for the quarter and half year has also been good with the business booking one more international order during Q2FY15 taking the overall order book to Rs 240 crore. With a strong order backlog, the year under review should help the JV to achieve a significant turnover, which is expected in the second half of the financial year. GE JV has turnaround in H1FY15 vs. H1FY14.

The margin is expected to sustain going forward.

In H1FY15 the aftermarket sales grew by 35% and its share to total sales increased from 23% to 26%. Similarly the Export sales were up by 22% and its proportion to total sales up marginally to 32% from 31%.

Forex gain is about Rs 3 crore in H1FY15.

Of the total order book about 60% is now exports and balance 40% domestic.