Key Highlights

Order inflow for 12 months ended Mar 18 stood at Rs 2140 crore as compared to Rs 5708 crore for 12 months ended Mar 17. EPC segment saw order inflow of Rs 480 crore as compared to Rs 3400 crore for FY 17 as one major order of Rajasthan refinery was not tendered in FY 18.

Order book as on Mar 18 stood at Rs 7873 crore, up by 1%. Average execution period of the order book is around 32-36 months. Around 53% of order book is from consultancy segment and rest from EPC.

Rs 22 crore write off in Mar 18 quarter pertaining to investments made in Oil & Gas exploration block. Expects some more write offs in oil and gas blocks but nothing material going forward. This write off is a part of other expenditure

For FY 19, big orders from Rajasthan refinery project both consultancy and EPC is expected. Also Panipath refinery expansion and Kaveri refinery and Malegaon expansion refinery is approved. BPCL also is working on Vizag refinery expansion.

Expects at least 2 of these 5-6 large projects to materialize in FY 19. So overall while consultancy segment will see same inflow as last year, and EPC will see large inflow. So overall around Rs 4000 crore of order inflow expected in FY 19.

Expects margins 28-30% for consultancy segment and for Turnkey segment around 6-7% margin guidance for FY 19. Around 20% overall net sales growth expected in FY 19.

Mar 17 had seen certain high value order which didn't happen in Mar 18 quarter. That's the reason for lower margins in Mar 18 quarter.

Investment of around Rs 200 crore made by the company in Fertilizer project which was strategic in nature for qualification for the fertilizer projects.

Enquiry pipeline building from Middle East, Oman and Mena region due to higher oil prices. These enquiries can convert into orders in next 4-6 months. Middle size assignments in range of US 30-50 M will soon start coming from these geographies.

Drop in interest rate and buy back resulted in lower other income

LSTK should pick up well going forward. For past 1 year only EPC segment orders coming in, but things should improve as green field orders come in.

Around 20% of order book is from petrochemical segment.