Key takeaways of the conference call

Order backlog as end of June 30, 2014 stood at Rs 666.4 crore of which manufacturing order book was Rs 371.8 crore (exports Rs 121.1 crore and domestic balance 67%), project order book was Rs 176.3 crore and EPC order book at Rs 118.3 crore. Of the total order book about 82% are domestic orders and balance are exports/deemed exports.

New manufacturing orders in Q1FY aggregated Rs 145 crore (compared to Rs 91 crore in Q1FY14) of which about 45% is export orders. TG Project order inflow is Rs 62 crore and of which majority are BoP order with-out turbines. EPC order inflow is zero. This is the highest order intake ever achieved in any one quarter in last 14-year tenure.

On current order book the company expects a manufacturing sale of Rs 380-400 crore for FY15. So the company is confident of attaining 20% growth in revenue for current fiscal with margin about 16%. Of the expected turnover of Rs 380-400 crore, exports to be about 55%. Since the margin largely depends on capacity utilization, the manufacturing margin will be better than 16% for balance period of current fiscal with improvement in utilization.

In wind business the company gets 90% of business from India and balance 10% from Europe. Subsequent to restoration of accelerated depreciation lot of projects that are on hold or uncertain has become certain. The company expects the pickup to happen from next year onwards.

EPC order visibility – few jobs are currently in the market with active enquiry. The company has successful relationship with some customers who are in the market now.

Overall, the company is focused on building on growth in both India and key global markets to deliver stable growth over a longer timeframe by leveraging its existing production infrastructure and relationships.

Revenue got impacted on account of execution and dispatch of 2 large turbine orders got shifted to next quarter. One of the turbines is already dispatched as of now.

Domestic is still weak and exports has to drive order inflow.

Export order flow will not be lumpy on overall exports basis but one quarter one vertical can fire and next quarter another can fire so sector wise it can be lumpy.