Highlights of the call

Volume growth in cables business in Mar 18 quarter stood at 17% YoY while for 12 months ended Mar 18, it stood at 18%.

Export sales stood at Rs 97 crore during Mar 18 quarter and were up by 29% on YoY basis. Exports sales were up by 21% for 12 months ended Mar 18 and stood at Rs 454 crore.

Retail sales through dealer network have seen around 34% growth to Rs 1086 crore for 12 months ended Mar 18.

Present dealer's network stood at 1284 active dealers as on Mar 18 with 137 new dealers added in Mar 18 quarter.

EHV cable sale in FY 18 stood at Rs 168 crore up by 65% YoY.

The company has total order book of around Rs 2570 crore as on Mar 18 of which EPC division stood at Rs 1425 crore, and cables order books stood at Rs 1145 crore. Of the cable order book, exports order stands at Rs 147 crore and EHV is around Rs 327 crore. The focus is on execution.

Rs 780 crore of total borrowings as on Mar 18. The debt will not increase from here despite the volume growth going forward.

The company is L1 in Rs 232 crore EPC orders

The company is operating at 90% of installed capacity in cable division in FY 18.

Expects volume growth of around 15-18% in FY 19

The capex of around Rs 55 crore is completed in FY 18 for LT cable which will generate around Rs 300 crore of additional sales in FY 19. The company is expanding its HT cable division by incurring a capex of around Rs 40 crore. The expansion will be on-stream by Mar 2019 and will generate around Rs 200 crore HT cable on an annualized basis.

0.4 months of reduction in working capital days in FY 18. Cash generation will aid capex.

EHV sales should double in FY 19. Margins are around 14% as compared to normal cables margin of around 9%.

Exports will grow by around 12-15% and dealer's sales to grow by around 30%.

Rs 1000 crore EPC revenue growth of around 10%

Expects around 20% net sales growth in FY 19; however the number will depend upon rates of copper and aluminum.

Expects operating margins to be more than 10% going forward.

Affordable housing segment is one of the major growth drivers of increase in demand for cables apart from the Railways and Metros and other industries. Steel sector and refining sector are some other sectors from where the demand is coming up.