Key takeaways of conference call

Current Order backlog was Rs 498.1 crore and of which manufacturing order is Rs 237.2 crore and the project order book is Rs 260.9 crore. Of the manufacturing order book of Rs 237.2 crore about RS 98.3 crore and of the Project business about Rs 113.1 crore is for TG Island projects and RS 147.8 crore is EPC order book.

This order backlog is excluding one large order amounting Rs 140 crore from a client in Maharashtra which got cancelled. Since the company is yet to hear from client in writing it has not yet repaid the multicrore advance received in this cancelled orders.

TG Projects for steam turbine power plants with output capacity of up to 52 MW done under TD Power Systems but EPC projects which include BTG island project and BOP portion (excluding civil works) for steam turbine power plants with output capacity from 52 MW up to 150 MW is done under DF Power Systems Pvt Ltd, a wholly owned subsidiary.

Order inflow in FY12 is Rs 521 crore (up from Rs 465 crore). However the EPC order intake (handled DF Power Systems) stood at Rs 70 crore compared to Rs 337 crore in FY11.

Weakness across all customer industry/sectors with capex deferred, not able to give clear picture for current fiscal.

Current manufacturing order backlog of Rs 237 crore is though lower compared to Rs 410 crore in corresponding previous period, it is good enough to provide sufficient time cushion to replenish the manufacturing order book.

On project side (including EPC) the company has already bagged handful of orders and waiting for advance from client so as to recognize it in order book and start execution. The company has already bagged one large EPC order for 150 MW power plant from a reputed player and it is waiting for advance.

On Wind sector, WinWind of Chennai is the only customer for the company currently. And WinWind is going through difficult times but according to market sources WinWind have bagged an order for 70 WTG which could translate into a generator order booking of Rs 20 crore for the company. As far as Vestas and GE Wind is concerned the latter is very keen on deliveries from the company to cater to their North American orders. The company expects order to come in from Q3FY13 onwards after approval of prototype delivered to them. On the other hand Vestas Denmark is going slow on their approvals due to their internal issues.

Orders and Supplies to Voith Hydro continue to be strong. But that of Siemens (i.e. Steam/gas turbine based generator of 20-52MW range) is disappointing with exports came down in FY12.

Siemens is an license agreement for larger generators and the Indian market size is about Rs 300 crore. The company is looking to garner 20% of the Indian market. Under the license agreement the company is allowed to export to ME, SEA, Japan, Africa and South Asia.

Lower EBITDA margin in FY12 for manufacturing segment is largely on account of product mix as well as escalation in input prices. In FY12 the company has done more lower size machines which is of low margin in nature.