Key takeaways of the call

Order book as end of Dec 2014 stood at Rs 577.4 crore of which 72% is domestic and 28% is exports. The manufacturing order book was Rs 374.6 crore, project business (including Japan Subsidiary) order book was Rs 158.6 crore and EPC was Rs 44.2 crore.

Manufacturing order inflow for 9mFY15 was Rs 349 crore (including Rs 149 crore exports)and the company expects order inflow of about Rs 100 crore in Q4FY15 there by expect to close the fiscal with an order inflow of about Rs 450 crore.

Order inflow for Q3FY15 is Rs 85 crore and of which direct export orders is RS 46 crore and deemed exports is Rs 22 crore. All Q3FY15 order inflow is manufacturing orders.

Consolidated revenue for the quarter was up by 22% to Rs 151.80 crore and EBITDA was up by 48% to Rs 9.82 crore. But with 81% jump in depreciation to Rs 7.05 crore on the back of change in depreciation under new Companies Act 2013, the PAT was as loss of Rs 0.22 crore compared to a profit of Rs 0.14 crore. Loss at PAT level is largely on account of lower other income and higher depreciation

Consolidated revenue for the 9mFY15 was up by 31% to Rs 425.53 crore and EBITDA was down by 14% to Rs 27.60 crore as the EBITDA margin contract to 6.5% from 9.8% in the corresponding previous period. At PAT level it was a loss of Rs 1.49 crore compared to a profit of Rs 8.49 crore in the corresponding previous period (up 99% to Rs 21.71 crore).

Manufacturing revenue for 9mFY15 was Rs 267.8 crore and of which domestic are 67% and exports is 33%. But the EBITDA was Rs 25.3 crore as the EBITDA margin come down to 9%. The projects business revenue for 9mFY15 stood at Rs 58.8 crore and the EBITDA was Rs 10.3 crore. The EPC business registered a loss of Rs 13.8 crore on a sale of Rs 115.7 crore.

Exports margin is about 100 bps higher than domestic orders.

2-pole Factory: Capex on this plant is Rs 120 crore. STO potential of this plant is Rs 150-200 crore. Current utilization is at about 10%. In 2 pole business the company expects to book orders worth Rs 30-40 crore in early next fiscal but this products have a delivery cycle of 12-14 months the benefits will slip to FY17.

The company sticks to its earlier revenue guidance of Rs 380-385 crore for manufacturing business for FY15. But the EBITDA margin will be of 13-13.75% cut-down from earlier guided 15-16%.

Excluding the two machines of 2pole generators where the margin is zero the company maintained earlier guided margin.

The company has natural hedge benefits.

Still Rs 100-120 crore with 50% direct exports another 20% is deemed exports, and balance domestic. Hope domestic market improving in next fiscal.

There is traction is sugar in Maharashtra and Karnataka with cogen plants of 30 mw capacity.

Still small players in the OEM market thus there is room for growth. Thus the growth through increased market share irrespective of market conditions will happen.

Going forward the company will be completely focused on manufacturing business. The company is not putting much of efforts and takes whatever that comes on its way.