Key takeaways of the call

Order book as end of Dec 2015 stood at Rs 373.5 crore and of which manufacturing order book was Rs 297 crore, Projects order book was Rs 73.7 crore and EPC order book was Rs 2.3 crore.

Manufacturing order inflow for Q3FY16 is Rs 81 crore (of which exports is Rs 34 crore) compared to Rs 85 crore in the corresponding previous period. The order inflow for 9mFY16 was Rs 250 crore. Project order inflow in Q3FY16 is Rs 5.7 crore.

Manufacturing revenue for FY16 will register a marginal growth over FY15 manufacturing revenue. The EBITA margin for FY16 is to be about 11%. Initially the company projected a manufacturing sale of Rs 380-385 crore for FY16 and that has now cut-down to Rs 375 crore. Some of customers in hydro segment have postponed their delivery and this has shifted significant amount of sales into Q1FY17 from end of FY16 leading to downward revision in initial revenue and profit guidance.

Project business including Japan Subsidiary - Maintain guidance with STO of Rs 120-130 crore and EBITDA margin of 11-11.5% for FY16.

US Loco order is going to happen in next year. The factor ready generators tested and ready for despatch.

Sees traction in orders for gas and hydro machines apart from railway generator for US Loco. Inflow of US Loco order in FY17 is certain the quantum of order is still uncertain. The company has to execute German order for 20 Gas machines of 10 mw each during May-Sep 2016. In addition good order inflow from hydro will facilitate the manufacturing business to register double digit growth in FY17.

Currently the hydro machines business is export driven with exports accounting for 90% of share of total business of the company. Order traction coming from Central America, SEA and Africa. Currently the company have good pipeline of orders

Other income of Rs 12 crore comprise of Rs 8 crore of interest and forex gain of Rs 3.8 crore.

The company accounted RS 10 crore of revenue and provision of doubtful debt (part of other expenses) in Q3FY16 as this receivables from a customer is under litigation.

Acquired a shell company in Germany and the company applied for name change. This company will handle the European business of the company. This new company will expect to generate revenue next fiscal. Currently the company generates a income of Euro 15 mln in Europe and that will be routed through this German subsidiary. Equity investment in this German subsidiary is Euro 25 million.