Key Highlights

June 17 quarter was badly impacted due to GST issues and some orders getting held back. June 16 quarter sales were significantly higher due to onetime export order.

Expects business loss of around Rs 20-22 crore in June 17 quarter due to the above issues.

Q2 onwards things are fine and improving to a great extent.

Order book is around Rs 893 crore which translates to around 27000 MVA as on June 17.

Continues to expect net sales of around Rs 880-900 crore for FY 18 which means sales to pick up significantly going forward in FY 18.

Australia, Latin America, CIS countries and Iran are some of the key markets where the company has a strong presence in international market.

Enquiry levels are high from exports, from SEBs as also from industrial segment. The only worry is PGCIL which has offered less tenders on YoY basis.

Expects around 20% of sales from exports, 15% sales from industrial segment, 10% from Solar transformers and rest around 55% sales to come from utilities.

The company is the largest supplier to Metros for the transformer requirements and is present in virtually every Rail Metros in India.

Expects margins to improve on an annual basis. Continues to target margins of around 12% at operating levels in next couple of years. Higher capacity utilization, more matured competition, large export orders and cost control will lead to higher margins.

Solar transformer continues to do well. PPAs have come down but so as the cost of solar projects. While tenders have slowed down due to the pricing issues, expects orders to come back soon in this segment.

The company has successfully completed installation of one large transformer in FY 17. Expects around 10 such new orders by FY 18.

Borrowing is around Rs 200 crore with average interest of around 11%. Expects borrowings to remain at these levels despite higher sales due to better advances.

The company has received transformer orders from railways as well which have better margins.

Ferro Alloy market is picking up again and the company has received orders for supply of transformers to this segment.

Overall management continues to expect to perform well going forward and continue to remain optimistic and June 17 quarter was a one off.

Overall, with current capacity, the company can generate net sales of around Rs 1200 crore without any additional capex.