Key takeaways of the conference call

Order intake for Q3FY17 and 9mFY17 was Rs 1866 crore and Rs 8634 crore respectively. The order book as end of Dec 31, 2017 was Rs 11186 crore and of which about 52% is from India and balance 48% are international orders. Of the order book about 72% is T&D order excluding SAE Towers, 12% SAE Towers, 12% Railways, 2% cables and balance are in water as well as solar.

L1 orders as end of Dec 31, 2017 was Rs 3800 crore. Of which L1 international orders were at about Rs 2000 crore.

Revenue of SAE towers in Q3FY17 was up by 28% to Rs 227 crore. The margins for SAE towers were in the range of 8-9%.

T&D revenue (excluding SAE towers) in Q3FY17 was down by 18% to Rs 1273 crore. T&D business impacted due to demonetization and delay in conversion of international orders.

On account of demonetization the company faced issues in logistics as well as subcontractor front. The troubles in logistics front already got over in January 2017 and on subcontractors side also the impact will wane off from Feb 1, 2017 onwards.

Railway business continues on growth trajectory with its Q3FY17 revenue up by 30% to Rs 105 crore. The margin has become positive compared to negative in last fiscal. The railways business expects to close FY17 with a revenue of Rs 450 crore. The company expects revenue of Rs 750 crore for railway business in FY18.

Expect to close FY17 with a revenue growth of 5%. Having clocked 8.8% of EBITDA margin for 9mFY17, the company is confident of 9% EBITDA margin for the fiscal. The company is hopeful of maintaining 9% of margin in FY18 with revenue growth of 15%.

On international front more action happening in Africa in next fiscal and in Middle East countries such as Jordan is expected to come in.

Not expect growth in Saudi JV going forward.

Cables business barring EHV which will have price variation clause others will benefit by margin gain with increase in price of both copper and aluminium on inventory on hand.

SAE – Brazil operations has an order book for close to 2 years and the Mexico operations have orders for upto 6 months and in negotiation for few more orders. SAE also has EPC business accounting less than 30% of its sales.

Mexico is a pure product supply business. Now there is order visibility in both US and Mexico.

Of the international order book about 30% is from MENA region, 20% from Africa & CIS, 10% from ASEAN, 16% from SAARC region and balance 25% is from SAE.