Triveni Turbines held a conference call on Nov 17, 2015. In the conference call the company was represented by Dhruv M Sawhney, CMD of the company.

Key takeaways of the call

Order intake in H1FY16 was up by 25% to Rs 380 crore with product order intake up 27% to Rs 290 crore and the aftermarket order intake stand higher by 18% to Rs 90.6 crore. Standalone order book as end of Sep 30, 2015 stood at Rs 680 crore and of which Rs 76 crore is aftermarket and balance is product order book. Of the product order book the share of domestic market is 64% and exports is 36%. Consolidated order book as end of Sep 2015 stood at Rs 790 crore.

Share of aftermarket in order backlog has improved to 11% in H1FY16 compared to 9% in H1FY15.

Revenue of aftermarket business in H1FY16 is about Rs 66 crore and of which about 30% is from international market and balance 70% is from domestic. Of the H1FY16 aftermarket order intake about 43% is exports and balance are from domestic market. Export is expected to pick-up substantially in FY17.

Order intake for aftermarket grew by 18% in H1FY16 but the revenue declined by 9%. Despatches in H1FY16 though subdued, the despatch in H2FY16 is expected to be good and make up for weak H1FY16.

JV's Order book as end of Sep 2015 was Rs 160 crore. The H1FY16 sale of JV was Rs 41.3 crore. With strong carry forward order book and enquiry the business is on strong footing.

Overall domestic market (upto 30 MW) has shown10-15% growth in H1FY16 and that is largely due to good Q1FY16 as order finalization in Q2FY16 was much lower. Orders finalized during the quarter were primarily from sugar and agro based sector apart from some specific process co-generation segments. Sugar is looking better than last year. Core infra sectors of steel and cement still not active. So increased domestic volume demand for steam turbines (ST) will take some more time. However in International market with strong pipeline of enquiries from various geographies across the globe, the company believes the order intake for the remaining quarter of current fiscal should also be good. Sugar cogen, waste to energy, biomass IPP to drive growth going forward as more and more countries are increasing focus on renewable energy sector.

Of the H1FY16 sales of Rs 301 crore (up 8%yoy), the export sales was Rs 104 crore (up 17%). Export sales as proportion to STO have gone up to 35% in H1FY16 from 32% in H1FY15.

Given strong order book expects strong sales performance in H2FY16 and thereby facilitated strong overall growth for FY16. Expects to maintain the H1FY16 EBITDA margin for FY16 as well.