Key Highlights

Of the total sales of Rs 2059 crore for Dec'15 quarter, sales from T&D stood at Rs 1531 crore, flat on YoY basis, SAE sales stood at Rs 177 crore down by 17% YoY, Cables sales stood at Rs 217 crore down by 15%, Railways sales increased by 264% YoY to Rs 80 crore on a low base of Dec'14 quarter and rest came from Solar and water segments.

Of the total sales of Rs 4393 crore for 9 months ended Dec'15, sales from T&D stood at Rs 4393 crore, down by 2.5% on YoY basis, SAE sales stood at Rs 564 crore down by 3% YoY, Cables sales stood at Rs 734 crore up by 7%, Railways sales increased by 114% YoY to Rs 160 crore on a low base and rest came from Solar and water segments.

Revenues for the quarter and 9 months ended Dec'15 were affected due to delay in conversion of L1 orders into firm orders, commodity price headwinds and forex translation impact (Brazilian Real)

The company has an order book position of Rs 9370 crore as on Dec'15 and is L1 in more than Rs 3000 crore worth of orders. About 75% of order book is from T&D segment, 10% from SAE, 5% from cables, 6% from railways and rest from solar and water. 53% of total order book position is from India and rest from international markets. Africa and MENA region comprise of total of 26% of total order book.

Share of SEB in current order book is about 13%. The company only works with handful of SEBs around 4-5.

Order inflow stood at Rs 6837 crore and has grown by 26% YoY. Order inflows are equally divided into orders from India and rest of the world. T&D accounted for 71% of order inflows, 11% from SAE, 12% from cables, 4% from railways while rests from solar and others.

Order inflow stood at Rs 690 crore in the month of Jan'16.

Orders under pipeline/tendering is about Rs 4000 crore from PGCIL, Rs 3000 crore from SEBs which the company caters to. Pipeline of orders in Railways segment (the area it has presence) is about Rs 2500 crore.

PGCIL is currently prioritizing some projects so delay in some and expedition in some in case of large vendors. Given large number of PGCIL projects in the portfolio the company is not impacted much.

Not seeing any slackening in order intake/order pipeline in MEA, SAARC and Africa. SEA is coming with high ticket orders. International outlook continues to be fairly bright.

There are T&D orders worth about Rs 10000 crore under tendering/pipeline in Saudi Arabia, Oman etc the execution is fine and the company is bagging orders. So as of now there is no concern.

Management expects T&D substation, solar and railway segment to drive growth in medium term.

The top line growth for the Dec'15 quarter was affected by around Rs 140 crore because of commodity price headwinds and Rs 43 crore due to Brazilian currency conversion impact.

In case of domestic orders that come with pass through, the lower commodity price has to be passed through and that impact the revenue but not the profits.

International orders come with a fixed price contract and the fall in commodity prices do benefit the company. However the company has hedged its commodity requirement so not much upside benefit is enjoyed by the company.

Management continues to expect around 3-5% of revenue growth for FY'16, despite flat 9 months sale. As per the management, majority of the order under execution will see their bookings in Mar'16 quarter. Management also expects margin to sustain around current level for rest of the year.

Management expects around 10% revenue growth for FY17 and 8.5% of EBITDA margin. Sales growth now largely depends on how commodity price behaves. For 10% revenue growth the company has assumed 15-20% volume growth.

SAE: – Brazil operation of SAE is profitable in local currency. But the problem arises only on translation into Rupees. However SAE's Mexico business was in mess in FY15 and the situation has improved significantly in FY16.

SAE is not EBITDA and PBT positive in Q3FY16 but it is EBITDA positive for 9mFY16. SAE has order book for next 2 years.

Higher taxation is largely due to presence in more than 36 geographies. For 9mFY16 effective tax rate is 42%.