Key takeaways of the conference call

Order intake in Q1FY17 was about Rs 2825 crore. Order book as end of June 30, 2016 was strong at Rs 10403 crore. In addition the company is L1 for orders worth Rs 3600 plus. This gives reasonable visibility and confidence for the year ahead.

Revenue still faces the headwinds of lower commodity prices and slow pace of conversion of L1 into orders.

Transmission orders from private concessioners' are all on negotiation basis. The contracts for 7-8 transmission projects won by private concessioners are yet to be awarded. Excluding the negotiated orders from private concessioners the tendering of PGCIL is slowing down. Not much of orders under pipeline in case of PGCIL. However SEBs tendering is strong in both transmission and substation. The company is currently focused on 4-5 SEBs and now it is start looking for orders in two other SEBs.

Tendering has return to normalcy in case of Saudi Arabia. The East Asia is looking good the company has recently opened an office in Indonesia and the company has emerged L1 in one order in that country.

Order intake in Railways business so far in current financial year has increased to Rs 432 crore and this reinforces the company's belief that Railways will drive the engine of growth of Infrastructure business of the company. Likewise, the company expects an upsurge in its solar business as well.

Currently the company has 20 odd projects under execution in Saudi Arabia and of which about 60% of projects are in advanced stage of completion and this projects will get completed in next few months. This will release retention money. Retention money on these projects is about Rs 500 crore which will get released in 2 quarter maximum.

Railway business: Expecting Rs 1000 crore of orders in this fiscal. The company targets a STO of Rs 2000 crore in next couple of years. currently the margin is little lower than T&D business and once it achieved critical mass of STO over Rs 500-600 crore the margin will be equal to T&D.

For FY2017 expects 10% growth in revenue irrespective of commodity prices.

SAE Towers has booked a revenue growth of about 40% in Q1FY17 and at EBITDA level it has turned around compared to losses in corresponding previous period. For FY17 SAE is not expected to do lower margin than India T&D business.

For some time PGCIL is not bidding aggressively for transmission projects awarded under tariff based competitive bidding (TBCB).