Key takeaways of the call

Income for the quarter ended December 2015 was up by 10% to Rs 354.80 crore of which ETC was Rs 210 crore; civil is Rs 51 crore and O&M is Rs 94 crore. And the EBITDA was up by 22% to Rs 48.02 crore. Eventually the net profit was up by 32% to Rs 20.36 crore.

Order backlog as end of December 2015 was Rs 3600 crore. Of the order backlog the ETC order book is about Rs 2000 crore, civil is Rs 500 crore and O&M is Rs 1150 crore.

Order intake for 9mFY16 was Rs 1200 (ETC Rs 256 crore; civil Rs 127 crore; O&M Rs 800 crore).

The company expects to close FY16 with an order intake of Rs 2000 crore compared to Rs 1350 crore in FY15

Strong traction in O&M order inflow in 9mFY16. O&M order intake in 9mFY16 was Rs 800 crore compared to Rs 200 crore in the corresponding previous period.

Of the total erection order backlog the share of BHEL is coming down from about 60% in FY15 to 50% in FY15 and now it is 40% of current order book.

Of the order backlog the share of International order is about Rs 460 crore. International order intake in 9mFY16 crore is Rs 96 crore.

The company has submitted bids for O&M orders worth over Rs 500 crore from SEBs. The bids are for two projects and the first one worth Rs 265 crore will open in another 20-30 days and the second project which is of Rs 300 crore ticket size will be opened in April 2016.

The company likely to add about Rs 700-800 crore worth of orders including Rs 250 of O&M order from SEB in Q4FY16. The company to end this fiscal with an order intake of about Rs 2000 crore compared to Rs 1350 crore in FY15.

Sustainable O&M margin typically will be about 18-22%. O&M segment revenue will be 40% of the company's FY17 revenue compared to current 27%.

Of the current order backlog the share of slow moving orders are Rs 180 crore largely in erection.

The company expects to close FY16 with a revenue growth of 7-8%. Margin will be in line with Q3FY16 numbers. Given current order book the company expects a revenue growth of 12% in FY17.

Of the FY16 revenue O&M share is expected to be about Rs 370-380 and for FY17 it will be about Rs 450 crore.

Debtors as end of Dec 2015 were Rs 220 crore. The working capital days were 65 days.

O&M orders are typically for 2-3 years.

The company is looking at civil jobs in railways and irrigation. If any orders materialize the civil vertical get a boost.

Employees on payroll is about 5000.

Hydro Magus, the subsidiary company is engaged in supply and construction of hydro plants on EPC basis, Renovation & Modernization, O&M etc. Its Current order backlog is Rs 35 crore and the company expects addition of another Rs 20 crore orders by end of this fiscal. Revenue for FY16 is expected to be about Rs 20 crore. Typically EBITDA for its business is 15-16% and a net margin of about 6.5-7%. Next fiscal the revenue is expected to scale up to Rs 45-50 crore. The CoD of Noida workshop will be declared before March 31, 2016.