Key takeaways of the conference call

Order backlog stands at Rs 377 crore and of which 66% were domestic orders and balance are exports. Similarly of the total order backlog manufacturing orders amounts Rs 237.1 crore (of which 58% is domestic, 42% exports), projects were Rs 113.5 crore (of which 76% domestic, 24% exports) and EPC amounts Rs 26.5 crore (entirely domestics).

For 9mFY13 the company registered a revenue of Rs 410.6 crore (down 45%). PBT was lower by 37% to Rs 42.65 crore and the PAT was down by 39% to Rs 27.74 crore.

In 9mFY13 the EBITDA margin of Mfg stood at 15%, the projects was 8.45% and EPC was 1.7%. The company expected to close the fiscal with a EBITDA margin of 17% for manufacturing, 6% for projects and 6% for EPC.

Of the total revenue (prior to inter-segment and inter-company elimination) of Rs 441.8 crore about 80% is domestic and 20% exports. Similarly out of Rs 441.8 crore, the revenue from manufacturing amounts Rs 208 crore (of which 65% domestic), projects Rs 93.7 crore (81% domestic) and EPC was Rs 140.1 crore.

Overall, the company is confident of meeting its FY13 annual revenue and PBT guidance and enter FY14 with strong momentum. Earlier it has given a guidance of a revenue of Rs 650 crore and PBT of Rs 65-70 crore for FY13.

Q3FY13 seen signs of early revival of order finalization. Order intake in Q3FY13 stood at Rs 377 crore and of which Rs 237 crore is for manufacturing. Of the total order intake for the quarter about 42% is exports. Order booking so far in Q4FY13 i.e. Jan 2013 and Feb 2013 is strong and it is expected to sustain in FY14 as well.

Domestic order booking is reviving with order finalization happening. See couple of orders to finalize soon. CPP projects numbering 10-12 by large corporate are currently negotiated and these are all from large corporate. These 10-12 orders worth together Rs 3000 crore and the company hopes to get atleast 20% of it. These CPP plants are in the range of 25-100 mw and are from industries such as Sugar, Cement, Petrochemicals and Steel. Pricing is aggressive the company is bidding for EPC in some and in some for supplies of TG islands and Generators etc.

Weakness of yen led to forex loss of Rs 5 crore. This loss is accounted before PBT level at other expenses. This is part of project orders.

The company has signed a contract with GE Janbacher for gas generators. This will be a large volume business going forward for the company and could become one of largest customer engagements for it. Currently GE Janbacher buys from one German supplier. The annual market for this gas generators is 400 nos. The initial order for the company is for 25 generators of 3-4 MW each. The supply will start in Q1FY14.

GE wind generators developed at TDPS are expected to be launched next month. Technical qualification is expected soon and the first generator can be seen next month.

Voith Hydro, one of most significant engagements for the company, continues to show strong visibility based on the pending order pipeline. Order inflow is strong in Q3FY13 and Q4FY13.

The company has put the negotiation with Vestas on hold as it's unable to agree for the one sided contract.

The company expects to announce shortly the first order for 2-pole generators under Siemens technology. Expects one or two orders shortly.

Project business – TG island business is more competitive and expects to get order

Strong enquiry pipeline in EPC has translated into a major order expected to be signed shortly and likely to be announced in next 2 weeks.

To expand its presence and penetration in overseas markets, the company is investing in sales resources in the US and Europe. The company has already hired a country manager for US and will do it soon for Europe at Germany. The US and Europe office will start functioning soon.

Capex in 9mFY13 is Rs 80 crore and is largely for 15-200 mw. For the quarter it is to invest 40 crore.

Global market for its size of generators was USD 1 bln and hydro for USD 1 bln. For Siemens gas generator is down by 50% and for wind generator has gown by 50%.