Prayasvin B Patel, Chairman & Managing Director and CFO Rajat Jain addressed the call.

Quarter was challenging from margins stand point.

At the standalone level the company had a challenging quarter from a margin standpoint. Its EBITDA levels came down on account of unfavorable revenue mix involving bulk of the shipments of low margins.

`Its end customers continue to grapple with execution challenges and the environment remains challenging in the medium to short term.

From an order book perspective, the company booked Rs 121 crore worth of orders, however it continues to see lackluster demand from the key sectors such as Cement & Steel.

At the PAT level, profits were boosted by gains from sale of surplus land.

Its consolidated topline grew 17% quarter on quarter essentially on account of performance in EPC and overseas business.

The EPC business, however, remains sluggish owing to macro factors which the management believes would be taken care of by the government's ongoing measures across sectors.

The company is seeing traction in some sectors especially defense.

The management hopes that its business would sooner than later reap the benefits of economic upturn.

The management is upbeat on the long term business outlook of the company.

Given the current global economic scenario, the management understands that the government has a very hard task at hand.

Order booked amounted to Rs 121 crore during the December 2015 quarter against Rs 140 y-o-y and Rs 112 q-o-q.

Order pending amounted to Rs 252 crore during the December 2015 quarter against Rs 261 y-o-y and Rs 258 q-o-q.

The company designs and manufactures worm gear; parallel shaft and right angle shaft; helical and spiral level helical gear; fluid geared and flexible couplings, as well as planetary gear boxes.

The company, through its subsidiary Elecon EPC, also manufacturers, material handling equipment, mining equipment, casting processes amongst other.

After sales business in overall sales fell in quarter thus the company had to take hit on margins.

Segments that will drive revenues for FY 2017 would be defence and marine business. This is where the company expects more orders in the future. Also the sugar sector and partially cement sector is promising.

In sugar business exports would be driving sales in FY 2017. Cement industry per se is not doing good but there are requirement coming for modification and minor enhancements which will drive growth as this is coming frequently for different plants.

In material handling business the company is focusing on those orders which have good margins.

In material Handling business in FY 2017 toplins growth will be 8-10% in and in FY 2016 this year it will be 5-8%

EPC will see topline growth in this year and next year too but can not quantify.

Consolidated gross debt is Rs 600 crore.

Cost of debt is 12-12.25%.

In fourth quarter after sales should recover and the company expects it to contribute to 25% of total sales in FY 2017 from 20% last year.

Consolidated receivables were Rs 775 crore.

The key for growth, however, would be the uptick of demand in key industries like power, mining, sugar and other infrastructure sectors that directly have a bearing on the company's growth prospects.

All the necessary capital expenditure required for expansion has been done and hence it sees no need for additional capex in the foreseeable future other than the maintenance capex which is not substantial.

Going forward EPC business will go down and product business will increase.

Land sold was surplus land which Elecon owned. It was under long term lease by Madhuban resort. Total realization was Rs 25 crore out of which 21.6 crore was capital gains. This land / resort was of no use to the company.

Loss of the EPC business during the current quarter was Rs 19.5 crore.

In FY 2016 EPC will not be able to make profit but the management will try to get it at breakeven levels.

Q4 will be definitely be profitable quarter. For this business the higher the turn over the better the profits.