Key takeaways of the call:

Order intake for 2014-15 fiscal stood at Rs 5160 crore, a rise of 36% compared to corresponding previous period. But the o0rder intake for Q4FY15 stood lower at Rs 992.3 crore (down 26%) compared to Rs 1333.3 crore in corresponding previous period and this is largely due to high base effect as Q4FY14 include on large order. Order backlog as end of March 31, 2015 was Rs 8128.8 crore, a rise of 26% yoy. HVDC orders have strong contribution to the order backlog.

Investment cycle in power generation and Industry is yet to pick up; banks are reluctant to extend loans to IPPs as they are hugely exposed to the Infra segment. Investment in generation segment is mainly being driven by NTPC and State Gencos. Investment in transmission segment is mainly being driven by Power Grid and State Transcos/SEBs. Further the investment scenario in bulk power HVDC transmission, in EHV 765 kV AC, in high technology domain, is positive.

Government's ‘Make in India' policy is yet to be implemented at ground level as some CPSU/State Transcos/SEBs continue to buy east-Asian origin GIS despite local manufacturing capabilities being available in India. Alike BTG and 765KV transformers the GIS products does not mandates domestic manufacturing capability in tenders. Currently only on Chinese player set up domestic capacity for 765 KVA and he is yet to make a major improvement in market share.

FY2015-16 will be equally challenging alike FY2014-15. The company though is positive in case of PGCIL, some state transmission utilities, some GENCO's such as NTPC and some state GENCOs it feels the private sector and industry is not yet ready to invest at the moment. Expect domestic T&D market to register Zero growth rate in FY2015-16. PGCIL continue to order at around Rs 20000 crore.

Sales for the quarter was up by 4% to Rs 1361.3 crore but the operating profit was down by 18% to Rs 89.8 crore with operating profit margin stand contracted by 180 bps to 6.6%. Sales are pushed by project orders execution and delivery of part of orders that got delayed in Q3FY15 happen in Q4FY15. With sales pushed up by projects, the margin impacted due to change in project product mix and there is nothing unusual in Q4FY15. Moreover Despite many projects get postponed the company on the strength of its internal project management control has managed to achieve higher project sales.

In general try to improve margin but needs to be aggressive in bidding depending on market condition, customer and company's position.