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The company held its conference call on 27 July 18 and was addressed by Mr Sunil Wadhwa MD
Key Highlights
Order book stood at more than Rs 6500 crore as on June 18. Orders of around Rs 612 crore received in June 18 quarter as compared to Rs 1580 crore in June 17 quarter. Around Rs 330 crore orders were from utilities and rest from pvt sectors. June 17 had TBCB order inflows which was not present in June 18 quarter which led to lower inflows.
Order inflow from PGCIL is around Rs 60 crore in June 18 quarter. Should pick up by the end of the year.
TBCB ordering should revive in next 1 to 2 quarters. Order intake should be normal after 1 or 2 quarters. Strong pick up is expected in order inflow going forward.
Solar based grid evacuation project will also start by end of FY 19. So basically there is a total shift from thermal orders to renewable orders.
Slowdown in TBCB and thermal power generation orders seen in June 18 quarter.
Addressable market pipeline is expected to increase going forward.
Net sales for June 18 quarter was lower by around 4% YoY. However excluding the HVDC order, net sales was higher by 10% YoY. There were net sales of Rs 240 crore of HVDC order in June 17 quarter as compared to Rs 85 crore in June 18 quarter. Around Rs 40 crore of proposed revenue was not included in the quarter due to Ind AS adjustments.
Ebidta margin was higher due to better product mix of orders that got executed and better execution excluding the HVDC orders.
Large investments in renewable projects through TBCB used for evacuation for renewable energy. First project tendering going on by PGCIL. Strong order tendering expected next year from this line of activities.
There are some write backs in June 18 quarter which was provided earlier. Rs 14 crore write backs in other income. Retentions will all be seen in other income as per new Ind AS.
Gross margin expansion was higher due to project closeouts in June 18 quarter.
Exports continue to account for around 10% of total sales and around 12% of order book. The company is working for tenders from countries of Mena, Africa region and also geographies like Nepal, Bangladesh, Bhutan and Srilanka.
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