Highlights of the call

The company has total order book of around Rs 2478 crore as on June 17 of which EPC division stood at Rs 1602 crore, substation around Rs 192 crore, EHV around Rs 120 crore and cables order books stood at Rs 562 crore.

The Turnkey project will be executed in about 18 month's time. The company concentrated only on execution in past few months. Expects around Rs 500 crore of new orders in next 5 months.

Export sales stood at Rs 109 crore during June 17 quarter and were up by 28% on YoY basis. The company is confident of exports to grow going forward as well, despite a strong growth in FY'17 largely driven by repeat orders from same customers and new orders from new geographies.

Retail sales through dealer network have seen an increase of around 30% growth to Rs 229 crore. Present dealer's network stood at 1246 dealers as on June 17 with 100 new dealers added in June 17 quarter.

EPC division sales excluding cables stood at Rs 170 crore sales as compared to around Rs 84 crore for June 16 quarter due to lower base of June 16 quarter. EPC segment should see a 60% growth in overall sales in FY 18.

June 17 quarter sales growth of 44% was on a lower base of June 16 quarter and should not be extrapolated.

Overall, expects around 20% sales growth for FY 18 with better margins at operating level. Interest costs to remain stable or to come down going forward despite increase in turnover.

Expects growth to remain strong in the coming years.

Not much effect of GST in the June 17 quarter.

Company will continue to increase its presence in larger cities and smaller towns and rural areas.

Expects capex of around Rs 50 crore on LT power cables segment which will commercialize in April 18.

The company has strong presence in cables requirements of Metro projects. It has received orders from Pune and Ahmedabad Metros and is working on for orders from Nagpur Metros.

The company does not play on copper prices and the company carries around 2.5 months of inventory of copper and has a cable order booking of around 3 months, so generally there is a natural hedge on inventory and order book of cables business.