Triveni Turbines hosted a conference call on January 20, 2016 to discuss its performance for the quarter and nine month ended December 2015.

Key takeaways of the call are:

Order booking in 9mFY16 increased by 26% to Rs 580 crore with product order intake being Rs 457 crore (up 31%) and after market order booking stand at Rs 124.5 crore (up 9%). Of the order intake about 72% is exports compared to 50% in corresponding previous period.

Carry forward order book as end of Dec 2015 is Rs 685 crore with product order book being Rs 614.9 crore and that of after-market order book was Rs 70.2 crore. Of the order backlog about 58% are exports and balance 42% is domestic. Consolidated order book as end of Dec 2015 was Rs 780 crore. Standalone order book of GETL was 140 crore.

Order finalization in domestic market during Q2FY16 and Q3FY16 were much lower compared to Q1FY16, which witnessed strong order finalization. But on year on year comparison the order finalization in domestic market in 9mFY16 was more or less remained at same level as of last year at around 450 MW.

The orders finalized in domestic market during the year so far were primarily from the sugar & agro based industries segments apart from some specific process co-generation enquiries. Even though economic activities are gaining momentum with improved sentiments and certain policy initiatives, the order booking is yet to gain momentum, and the company believes that increased domestic demand for steam turbines will start from mid FY17.

Order intake from international market was good in 9M FY16. The company has already achieved a growth of 25% in export order intake during the nine months period in comparison to last full year. Given strong pipeline of enquiries from various geographies across the globe, the company believes the order intake for Q4FY16 also to be good even though sustaining the same rate of growth may be tough. The company's efforts on exports continue and efforts are underway to set up offices, and post sales & service personnel in select geographies. The company will be opening up two more offices in Southern Africa and SE Asia.

EBITDA margin for Q3FY16 stood at 22.6% compared to 25.5% in corresponding previous period and this was largely due to the company accounting entire CSR expenses in Q3FY16 rather than spread it out evenly over the two quarter of H2FY16. Significant part of incremental portion of other expenses for Q3FY16 is towards CSR expenses and marketing expenses (related to opening of new overseas offices). In addition the company has seen Rs 15 crore of exports after sales revenue shift to Q4FH16 (next quarter). Similarly significant products export revenue has also shifted to next quarter and will be reflected in this quarter. All these factors combined to hurt the margin for Q3FY16.

The company expects the consolidated EBIDTA margin for FY16 to remain flat at the level of FY15.

New plant near Bangalore with little capex will commence operation in 3 months time in June/July 2016. It will cater to larger range of turbines apart from giving productivity gains as it houses testing facilities etc.

Lot for demand for biomass projects in SE Asia and similarly Europe see strong demand for waste to energy plants